MSE

Trading Report for week ending August 26, 2011

Index declines by a further 1.3 per cent

The Malta Stock Exchange (MSE) extended its stream of negative

performances to three, as the index tumbled by 1.3 per cent to close the week

at 3,083.321 points. The negative sentiment which lately hit highly capitalised

equities impacted the performance of the index, as it traded in negative

territory in four out of the five sessions. Turnover in the equity market

reached EUR499,484 traded over 10 equities, of which two appreciated in value,

six eased lower and two traded unchanged. A total of 239,755 shares changed ownership

across 146 transactions.

Meanwhile in the Government Stock Market turnover increased drastically to just over

EUR36m traded over a total of 21 issues, of which 12 edged lower and nine

appreciated in value. Liquidity was spread equally between short and long-dated

stocks, with the 7.8% MSG 2012 being

the most active as total trading value reached just over EUR10.4m, while the

long-dated 5.5% MGS 2023 headed the

list of losers by incurring a 1.03 per cent loss.

Dissimilar directions were experienced

in the Corporate Bond Market, as

from the 24 active issues eight traded in positive territory, six registered

losses, while 10 traded unchanged. Total turnover reversed last week’s declines

as it increased to EUR483,030. The best performer for the week was the 7.5% Mediterranean Investments Holding plc

2015 which gained 18.75 per cent. Meanwhile, the 4.8% Bank of Valletta 2018 traded for the first time since its

issuance and closed the week at EUR101.

In the Equity

market, banks continued to fall out of favour as selling pressure increased.

For the third week in a row Bank of

Valletta plc share value continued to depreciate, as the bank slipped by a

further 2.1 per cent to end the week at EUR2.51. Negativity on the banking

equity persisted throughout the week, however posting a minimal gain of 0.6 per

cent on Friday, having plunged by 1.7 per cent or EUR0.044 on Tuesday. A total

of 114,966 shares changed hands over 85 deals with the bank being marked as the

most active, as total trading value amounted to EUR288,266.

Likewise, HSBC Bank Malta plc edged a further 1.9 per cent lower or EUR0.05,

notching the price down to EUR2.65 over 32 transactions worth EUR133,958. The

equity commenced trading in the second session of the week where it recorded a

loss of EUR0.03, while it continued to register losses in the following three

sessions. Similarly, following a series of positive performances, Lombard Bank plc share value fell by

0.7 per cent or EUR0.02 on Monday in which 10,500 shares were executed across

one single trade. On Tuesday the bank announced the Group and Bank unaudited

condensed Interim Financial Statements for the six-month period ended June 30,

2011. Profit before taxation increased slightly to EUR6.99m, thus an increase

of 3.6 per cent, while Earnings per share for the period rose to EUR0.116.

The worst performer for the week emerged from

the hoteliers industry, as International

Hotel Investments plc faltered by 2.7 per cent on Monday while it

maintained its previous closing price in the following session to end the week

at EUR0.73. Turnover reached EUR14,673 which was traded across 20,100 shares.

The other losers for the week were Maltapost

plc and MIDI plc, with the

former losing ground by two per cent in the mid-week session to close the week

at EUR0.97 over a single trade of 10,877 shares. The latter dipped by 2.2 per

cent on Monday, whereas it traded unchanged on Wednesday to end the week at EUR0.43.

Conversely, following its recent declines, GO plc managed to snap a minimal 0.8

per cent gain to end the week at EUR1.265. The telecommunications equity

kicked-off the week on a positive note by registering a minimal gain of 0.3 per

cent which it than reversed in the following session by posting a loss of 1.9

per cent. Thursday’s session emerged to be the winning streak for the equity as

it soared by 2.4 per cent or EUR0.03, thus cancelling the losses incurred on Tuesday.

Furthermore, in the last trading minutes for the week Malta International Airport plc logged the best performance, as the

airport operator enjoyed a strong session by posting a 5.3 per cent gain on

thin trading of 900 shares to end the week at EUR1.58.

Meanwhile, the non-movers for the week were RS2 Software plc (RS2) and Global Capital plc.

RS2 maintained its previous closing price in the last two session of the week

at EUR0.55 over three deals of 19,900 shares. Global Capital took a similar

direction on Monday when it traded flat at EUR0.50 on low volumes of 300

shares. On Thursday the company published its half yearly report for the six

months ended June 30, 2011, in which it reported an increase in its loss before

tax from EUR1.22m in 2010 to EUR1.34m in 2011. In their statement the company

also announced that the directors do not recommend the payment of an interim

dividend.  

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]