Trading in corporate bonds continues to increase


Trading Report for week ending October 21, 2011


in corporate bonds continues to increase

The Malta Stock Exchange (MSE) index failed

to sustain last week’s gain by posting a minimal loss of 0.6 per cent to end

the week at 3,103.426 points. The index experienced a balanced week as it

equally shifted from positive to negative in four sessions, while it closed

unchanged yesterday. The registered losses by International Hotels Investments plc, FIMBank plc and GO plc put

pressure on the broader market and thus on the index negative close. As opposed

to last week, volatility decreased with total trading volume amounting to

320,975 shares which were dealt across a total of 119 transactions, while

turnover amounted to EUR563,408. The week witnessed the trading of 10 equities,

of which three gained ground, four incurred losses, while three closed flat.

Local Government

Bond prices declined further this week. Nearly all active issues were on

the downside, however the week on week changes were on a general note

reasonable. Nearly half of the trading took place in the 5% MGS 2021 the price of which gained a mere 0.47 per cent.

Meanwhile the long-dated issue maturing in 2030 closed the week flat at EUR102.30.

Once again the Corporate Bond Market has been quite active. Turnover nearly

reached EUR1.05m slightly lower than that traded in the safer Government Bonds.

A total of 31 issues were active with the 6.25%

Mediterranean Bank plc 2015 bond heading the list of gainers with a 1 per

cent gain, hence closing at EUR100 while 0.8 per cent was shaved off the price

of the 4.8% Bank of Valletta 2018 bond


In the equity

market, FIMBank plc experienced

a negative week, as the banking equity closed markedly lower by 10.4 per cent

or $0.078 to end the week at $0.67. A total of 14,000 shares were traded over

one session. Conversely, Lombard Bank

plc continued its recent upward trend with the equity appreciating by a

further 1.1 per cent or EUR0.03 to close the week at EUR2.75. The financial was

active in one single session on Tuesday were 22,000 shares changed hands across

four transactions.

Likewise, HSBC Bank Malta plc managed to reverse the losses incurred in the

previous week by snapping a gain of 0.8 per cent to close at EUR 2.66. The Bank

was active in the first four session of the week were it closed unchanged in

three, while it moved higher on Tuesday. Total trading value amounted to EUR58,933

which was traded over 22,185 shares.

Meanwhile, the other two active financials, Bank of Valletta plc (BOV) and Middlesea Insurance plc (MSI) closed

the week unchanged. The former maintained its EUR2.45 level. BOV took the

lion’s share of this week’s turnover, as EUR264,264 was traded over 67 deals of

107,718 shares. On Tuesday the company announced that the board of Directors is

scheduled to meet on Friday October 28, 2011 to consider and approve the

Group’s and the Bank’s Audited Financial Statements for the financial year

ended 30 September 2011 and consider the declaration of a final dividend.

Similarly, MSI closed flat at EUR0.92 over a

mere 166 shares which were dealt across a single session on Thursday.    


Hotels Investments plc shares reverted most of last week’s

gains, as the equity tumbled by 2.4 per cent or EUR0.02. The equity commenced

trading on Monday were it recorded a loss of 0.6 per cent, while it traded flat

in the following session. During Wednesday’s session the equity incurred a

heavy loss of 3.1 per cent which it partially recovered in the following

session to end the week at EUR0.80. A total of 96,321 shares changed ownership

over six deals.

Additionally, GO plc shares came under selling pressure, as the

telecommunications equity contracted sharply by 4.6 per cent over four deals of

just over 4,000 shares. The equity ended the week at EUR1.05. Furthermore, from

the IT sector, RS2 Software plc

halted its recent positive trend as it plummeted by 3.2 per cent to end the

week at EUR0.58.

On a positive note, Malta International Airport

plc, strengthened its share value with a further

increase of 2.4 per cent. The equity moved higher on Monday, while it closed

unchanged the following three sessions, to end the week at EUR1.70 and thus up

by 2.4 per cent year to date. On Wednesday the company announced that it

reviewed its latest passenger forecast for 2011 from an anticipated increase of

3.2 per cent announced in July to at least an anticipated increase 4.5 per


Meanwhile, the other non-mover for the week was 6pm Holdings plc

which closed the week at EUR0.32

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]