MSE

Trading Report for week ending September 9, 2011

Positive

week for index as banking equities gain further ground

Following four consecutive weeks of

declines the Malta Stock Exchange Index

(MSE) returned to trade in positive ground with a gain of 1.2 per cent to

end the week at 3,114.572 points. Solid gains by highly capitalised banking

equities proved to be a key determinant in the direction of the broader market

as the index recorded gains in the first three sessions of the week, while it

lost ground on Friday following Thursday’s national holiday when the market was

closed. Turnover during the week decreased to EUR194,870 traded across eight

equities with gainers outperforming losers, as six companies appreciated in

value, one edged lower and the other closed unchanged. Total trading volume

this week amounted to 81,136 shares traded across 76 transactions.

In the Government Stock Market turnover registered a further decrease, as

total trading volume reached just over 5.1m traded across 17 issues. The negative

news which was reported on Wednesday that Moody’s has reclassified Malta’s

foreign and local-currency government bond rating from A1 to A2 seemed to have

unimpressed investors confidence, as from the 17 active issues 12 appreciated

in value and five recorded minimal losses. The 3.75% MGS 2015 short-dated bond

headed the list of gainers as it appreciated by 1.12 per cent.

Meanwhile in the Corporate Bond Market, running yields took dissimilar directions,

as from the 23 active issues 11 closed higher, four edged lower and eight closed

flat. For the second week in a row the 7.15%

Mediterranean Investments Holding plc GBP 2015-2017 was the best performer

as it gained  2.6 per cent, while the

negative on the week was the 7% FIMBank

plc Eur 2012-2019 which slipped by 1.4 per cent.

In the Equity

market, after last week’s gains, banking equities continued their recent

recovery as three of the four banks recorded gains with Bank of Valletta plc(BOV) finishing markedly higher and FIMBank plc trading flat at USD0.77 on

a mere 1,400 shares following weeks of inactivity.

BOV’s share price appreciated by a strong 2.8

per cent or EUR0.07 with gradual gains in all sessions to end the week at EUR2.59

as the equity was the most liquid this week as 31,682 shares changed ownership

across 34 transactions.

Similarly, HSBC Bank Malta plc (HSBC) maintained its positive trend as the

bank snapped a 1.1 per cent gain over 21 trades of 22,756 shares. HSBC traded in

positive territory in the first three sessions with Tuesday being marked as the

best session, as the equity posted a 1.45 per cent gain which was than reverted

on Friday to end the week at EUR2.70. The other active banking equity for the

week, Lombard Bank plc moved in similar

direction as it advanced by 0.8 per cent or EUR0.02 to end the week at EUR2.70.

On Friday the bank announced that Mr. Graham Fairclough has been appointed

non-executive Director of the Bank with effect from August 23, 2011.

From  the hoteliers sector, Island Hotels Group Holdings plc was logged as the best performer,

as the hotel operator surged by 5.29 per cent to end the week at EUR0.895 over

thin trading of 100 shares. On Wednesday the company announced that it reached

an agreement for the acquisition of 50 per cent of the share capital of Buttigieg

Holdings Limited. Another gainer for the week was Middlesea Insurance plc which recorded a gain 1.22 per cent over a

single session to end the session EUR0.911.

Furthermore, Malta International Airport plc gained 1.3 per cent or EUR0.0.2

across 13,370 shares which were executed over nine transactions. Tuesday was

marked as the winning strike for the airport operator as its share price rose

to EUR1.54 which it than maintained in the following sessions. On Monday the

company announced that passenger movements in August almost reached the

all-time monthly record of last year and totalled 427,575. In absolute terms, a

mere 349 passenger decrease or 0.1 per cent decline when compared to the same

month last year. During the month, seat capacity reached 499,086, thus a

decrease of 7 per cent compared to the same month last year.

In contrast, the only loser for the week came

from the beverage sector, as Simonds

Farsons Cisk plc slipped by a minimal 0.3 per cent over a single session to

end the week at EUR1.795.

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]