MSE

Trading Report for week ending September 2, 2011

Index

edges minimally lower as large caps gain ground

Following last week’s negative

performance the Malta Stock Exchange

Index (MSE) widened its stream of negative performance to four, as the

index recorded a minimal loss of 0.15 per cent to end the week at 3,078.788

points. Despite the positive performances recorded by the two highly

capitalised banking equities the index failed to switch direction, as the heavy

losses recorded by GO plc and Malta International Airport plc (MIA)

have black shadowed the index performance with the MSE trading in the red in

three out of five sessions. Turnover during the week increased to EUR834,132

traded over nine equities, as four appreciated in value, three edged lower and

two closed unchanged. In the week a total of 633,227 shares were traded across

142 transactions.

In the Government Stock Market turnover decreased to just over nine

million traded across 18 issues, of which 13 closed higher and five eased lower

with most of the long-dated issues registering minimal gains. Meanwhile in the Corporate Bond Market, running yields

were quite unbalanced, as from the 32 active issues 12 traded in positive

territory, five lost ground and 15 closed sideways. The best performer for the

week was the 7.15% Mediterranean

Investments Holding plc GBP 2015-2017 which gained 2.6 per cent, while the

negative on the week was the 7% Midi

plc GBP 2016-2018 which slipped by 3

per cent.

In the Equity

market, after drifting lower for the past weeks, banks managed to end the

negative saga by posting minimal gains. Bank

of Valletta plc share value appreciated by 0.4 per cent or EUR0.01 after

trading at an intra-week low of EUR2.499 to end the week at EUR2.52. A total of

142,718 shares changed ownership over 69 transactions.

Likewise, HSBC Bank Malta plc managed to move in line with its peer as the

bank snapped a 0.8 per cent gain or EUR0.02 over 34 trades of 56,400 shares to

notch the price up to EUR2.67. Meanwhile, following last week’s negative

performance Lombard Bank plc closed

flat at EUR2.68. Throughout the week the bank traded at a high of EUR2.70 which

it failed to maintain in the mid-week session as it posted a loss of 0.7 per

cent. Total trading value amounted to EUR70,224 which was traded over seven

transactions. The other non-mover for the week came from the hoteliers

industry, as International Hotels

Investments plc closed flat at EUR0.73 as two transactions of 9,299 shares

were executed.

From the information technology sector, RS2 Software plc was logged as the best

performer for the week as its share price surged by 5.4 per cent to end the

week at EUR0.58. Tuesday was the winning streak as the equity posted a strong

gain of 5.3 per cent influenced by the positive interim results the company had

announced on Monday. The Group registered a

significant rise in its profit before tax for the period under review, from EUR78,055 in 2010 to EUR1.55m

in 2011. The equity’s trading volume was on the high side as 371,160 shares

were traded over 11 transactions.

From the postal industry, Maltapost plc advanced by 0.9 per cent

to end the week at EUR0.979 over a single session of

1,700 shares. Conversely, the worst performer for the week was GO plc, as the telecommunications

operator was knocked sharply lower by 5.1 per cent to end the week at EUR1.201.

Wednesday proved to be the most unpleasant session of the week as news from

abroad has put a damper on investors’ sentiment. In fact the negative results

published in the morning by the Greek telecoms operator Forthnet in which the local equity has an

indirect investment seem to have influenced investors as the equity came under

selling pressure to post a heavy loss of 4.4 per cent. Furthermore, on the same

day the company announced its financial statements for the six-month period

ended June 30, 2011 in which it registered a loss before tax of EUR14.13m

during the period under review, compared to EUR 0.65m for the same period last

year.

Similarly, 3.8 per cent were shaved off Malta International Airport

share value with the airport operator ending the session at EUR1.52

across 5,400 shares which were executed over a single session on Monday. In

addition, Midi plc shares plunged by

2.3 per cent over 1,000 shares to end the week at EUR0.42.

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]