Index maintains negativity

MSE Trading Report for week ending August 19, 2011

Index maintains negativity

Following last week’s hefty loss the Malta Stock Exchange (MSE) continued to trade in negative territory by recording a further loss of 1.10 per cent to end the week at 3,124.444 points. Following Monday’s public holiday the index traded flat on Tuesday while posting losses in the following three sessions with the two major banking equities being at the forefront in experiencing losses. Turnover was lower than the previous week and amounted to EUR491,976 traded over nine equities, as one gained in value, three closed flat and five incurred losses. A total of 221,625 shares were traded over 108 transactions.

Meanwhile, the global uncertainty experienced by international markets as a result of week economic growth forecasts has pushed investors to switch their assets to less riskier assets. In fact, turnover in the Government Bond Market continued its upward trend, as total traded value increased by over  EUR778,000 to reach EUR22.3m. In total 18 issues were active, of which 13 closed higher, four lost ground and one closed unchanged. Long-dated issues were marked as ‘priority stocks’ with the 6.6% MGS 2019 being the most liquid, as trading value reached just over EUR5.9m, while the 5.5% MGS 2023 was logged as the best performer for the week as it soared  by 1.9 per cent.

Running yields in the Corporate Bond Market took dissimilar directions, as from the 23 active issues, 10 traded in positive territory, four declined in value and nine closed flat. Total turnover decreased to EUR423,062 traded across 53 transactions. The best performer for the week was the 7% FIMBank plc USD 2012-2019 which gained four per cent over a single trade worth $13,809.

In the Equity market, highly capitalised banking equities were in the limelight, as investors turned their backs to extend the negative performances recorded last week. HSBC Bank Malta plc posted further falls by registering a loss of 2.2 per cent or EUR0.06 notching the price down to EUR2.70. During the week the equity traded flat on Tuesday, while it posted a minimal loss in the following session. Thursday’s session emerged to be a drag, as the bank came under selling pressure with 34,554 shares being traded to pull down the equity share value by two per cent ending the session at EUR2.70. The equity was marked as the most liquid on the week as total trading value reached EUR167,779 traded across 61,509 shares which were executed over 36 transactions.

Likewise, Bank of Valletta plc (BOV) shares tumbled by a further 1.7 per cent to end the week at EUR2.565. The bank kicked-off the week by trading flat, while it depreciated in value in the following three sessions with Friday being the worst session as the equity slipped by EUR0.024. Total transactions amounted to 36 which were worth EUR154,757.

Conversely, for the third week in a row Lombard Bank plc was the only positive performer on the week, as the banking equity continued to sustain its stream of gains by adding a minimal 0.04 per cent to its share value. The Bank was active in the last two sessions of the week in which it traded unchanged on Thursday, while it appreciated yesterday. A total of 38,124 shares changed hands across six trades to end the week at EUR2.70.

Meanwhile, 1.79 per cent was shaved-off RS2 Software plc share value, as the Information Systems operator contracted in the last session of the week to close at EUR0.55 over three deals of 11,800 shares. Similarly, from the postal industry, Maltapost plc declined by one per cent to cancel the previous gains recorded in mid-July. The equity experienced flat trading in the mid-week session, while it sank on Friday to end the week at EUR0.99 across two deals worth EUR8,296.

From the telecommunications sector GO plc extended its string of negative performances edging by a minimal 0.4 per cent lower. The equity was active in all four sessions, in which in the mid-week session it posted a loss of 0.79 per cent, while on Friday it reverted slightly the loss incurred to end the week at EUR1.255. During the week total trading volume amounted to 9,950 shares. Meanwhile, following last week’s heavy loss, on Thursday Malta International Airport traded flat at EUR1.50 over three deals of 2,000 shares.

The other non-movers for the week were Simonds Farsons Cisk plc and Plaza Centres plc, as on Thursday the former closed at EUR1.80 across four trades worth EUR10,714, while the latter move in a similar direction by maintaining its previous closing price at EUR1.80 over 3,000 shares.

This article which was compiled by Atlas JMFS Investment Services Limited, does not intend to give investment advice and the contents therein should not be construed as such. Atlas JMFS is licensed to conduct investment services by the MFSA and is a Member Firm of the Malta Stock Exchange. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Atlas JMFS at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email [email protected]