MSE

Trading Report for week ending September 23, 2011

Index

halts its positive run as large caps fall

Following two weeks of positivity the Malta Stock Exchange Index (MSE) halted

its upward trend by snapping a 1.4 per cent loss to end the week at 3,090.282

points. Two of the largest capitalised equities were the main contributors for

the broader market negative close with HSBC

Bank Malta plc and International

Hotels Investments plc registering heavy losses in the first two sessions of

the week. Monday was the worst session of the week with the index closing

sharply out of favour by 1.02 per cent while it incurred a further loss of 0.7

per cent on Tuesday. Following the mid-week National Holiday the MSE recorded

modest gains on Thursday and Friday as banks appreciated in value. Turnover

decreased to EUR406,233 traded across nine equities as losers and gainers

tallied to four, while the others closed unchanged. Total trading volume

reached 215,318 shares which were executed over 111 transactions.

Meanwhile, in the Government Stock Market gainers outperformed losers, as out of 16

active issues eight traded in positive territory, seven edged lower and one

closed unchanged. Long-dated issues were seen as ‘priority stocks’ with the 5% MGS 2021 and the 5.1% MGS 2022 heading the list of

gainers. In the Corporate Bond Market,

running yields were rather balanced as from the 26 active issues, six gained

ground, 14 closed sideways and the other six registered losses. The best

performer for the week was the 5.6%

Global Capital 2014-2016 which put together some solid gains of 8.4 per

cent.

In the equity

market, following last week’s strong gain International Hotels Investments plc shares depreciated in value by

five per cent or EUR0.04. A total of 10,740 shares were traded over a single

session on Monday to end the week at EUR0.76. Meanwhile, from the

telecommunications sector, GO plc

emerged to be the worst performer for the week as its share price tumbled by

6.7 per cent or EUR0.08 to reach a record low of EUR1.12. During the week the

company experienced changes in its senior management positions as it announced

that Mr. Alan Zammit resigned from the post of Chief Information Officer and

was replaced by Mr. Ramana Palepu. Furthermore it also announced that Mr.

Duncan Howard will be resigning from the post of Chief Commercial Officer, while

Mr. Yiannos Michaelides will be appointed as an Interim Chief Commercial

Officer.

From the banking sector 2.6 per cent was

shaved off HSBC Bank Malta plc share

value, as a total of 49,008 shares changed ownership across 24 transactions. In

Tuesday’s session the bank came under strong selling pressure as it plunged by

3.3 per cent or EUR0.089 to end the session at EUR2.60, but managed to recover

part of these losses during yesterday’s session as it ended the week at EUR2.63.

Likewise Lombard Bank plc recorded a

0.78 per cent loss on Friday, as a single trade of 1,500 shares pushed its

share price down to EUR2.679.

On the contrary, Bank of Valletta plc shares partially recovered last week’s loss by

snapping a 1.2 per cent gain. The equity closed flat the first two sessions of

the week, while it appreciated in value in the last two days of activity to end

the week at EUR2.53 after having traded at a weekly low of EUR2.48. On the week

the equity was the most liquid, as a total of 73,008 shares were traded across 48

deals.

Following weeks of inactivity Global Capital plc was the best

performer of the week as its share value surged by 100 per cent over a total of

4,787 shares to end the week at EUR1.00.

Also on a positive note from the Information

Technology sector, the positive sentiment experienced by RS2 Software plc investors continued, as the equity soared by 3.5

per cent over a single session on Friday to close the week at EUR0.60. The equity

has by far outperformed the market as its year-to-date performance stands at a

whopping 25 per cent.

The other gainer this week was Maltapost plc, as the postal operator

saw its share value appreciate by 0.93 per cent to notch the price up at EUR0.979

on Thursday, while it traded flat on Friday.

Meanwhile, the non-mover for the week was Malta International Airport plc which closed unchanged at EUR1.53

after trading at an intra week low of EUR1.51. A total of five transactions of

6,440 shares worth EUR9,819 were executed.

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]