MSE

Trading Report for week ending October 28, 2011

Index

falls marginally on higher volume

The Malta Stock Exchange (MSE) index

reaffirmed its negative position by recording a further loss of 0.4 per cent to

end the week at 3,092,076 points.    Despite positivity in three out of five

sessions the index failed to position itself in a dissimilar direction, as the

losses recorded by the highly capitalised Bank

of Valletta plc and HSBC Bank Malta

plc were the primarily cause for the index negative close. Volatility in

the week was noted on high volumes as a total of 1.26m shares were traded over

227 transactions, while turnover amounted to Eur1.3m. The week was

characterised by 14 equities being active, of which gainers and non-movers

tallied to four, while losers amounted to six.

Most of the local Government Bond took a slight downbeat approach, as from the 21

active stocks 17 depreciated in value, three posted gains while one closed

unchanged. The most liquid issue was the long-dated 5.25% MGS 2030 as total turnover

amounted to Eur429, 379 traded over 15 deals. In the Corporate Bond Market trading volume remained on the high side as

total turnover reached just over Eur1.28m. Running yields were quite unbalanced

as from the 27 active issues, six gained ground, four edged lower, while 17

closed unchanged. The 5.9% HSBC Bank

Malta 2018 bond issue headed the list of gainers with a 1.4 per cent gain.

In the equity

market, Bank of Valletta plc was

the primary laggard from the banking sector as it recorded a loss of two per

cent. The equity spent the entire week showing considerable weakness as it

traded at a loss in the first three sessions of the week, while posting a

minimal gain on Thursday. In the last trading session of the week, ahead of the

announcement of its financial results, the equity cancelled the gain recorded

in the previous session to close the week at Eur2.40. A total of 201,966 shares

were traded over 124 deals. Yesterday, just after close of trading, the Bank

announced its financial results for the year ending September 30, 2011and

reported a profit before taxation of Eur64.4m, compared to the Eur 98.9m earned

in the previous financial year, thus a decrease of 35 per cent. The Bank

announced that the decrease in profit was mainly due to the uncertainty in the

financial markets, particularly in the second half of the year. Furthermore, one

other main factor was the charge of Eur15m related to the settlement of the La

Vallette Multi Manager Property Fund. The board of directors proposed the

payment of a final net dividend of Eur 0.052c per share. In addition the board

also proposed a bonus share issue of one share for every eight shares held.

HSBC

Bank Malta plc slipped by 0.8 per cent or Eur0.02 to

end the week at Eur2.64. The banking equity was active in all sessions, in

which it shifted from negative to positive in four sessions while it closed

unchanged in the mid-week session. Total trading value reached Eur91, 618 which

was dealt over 34,589 shares. On Friday, the bank announced that it is in discussions

regarding the possible sale of its card acquiring operation. Conversely, FIMBank plc shares soared by 7.5 per

cent over high volumes of 425,000 shares which were traded across a single

session on Friday to end the week at $ 0.72. Meanwhile, Lombard Bank plc closed

the week flat at Eur2.75.

From the hoteliers sector, International Hotels Investments plc partially

cancelled last week’s losses by registering a gain of 1.9 per cent to end the

week at Eur0.815. The equity was active in four sessions were it gained 1.3 per

cent and 1.1 per cent on Tuesday and Wednesday respectively. On Thursday the equity

closed sideways while it declined on Friday by registering a loss of 0.5 per

cent. On the contrary, Island Hotels

Group Holdings plc shares tumbled by five percent on Friday to end the week

at Eur0.85.

Once again, Malta International Airport plc shares were among the gainers for

the week, as the airport operator appreciated by a further 2.9 per cent to

reach a four month high and subsequently 5.4 per cent gain year to date. The

equity was active in two sessions were it closed unchanged on Monday while it

advanced by 2.9 per cent on Friday to end the week at Eur 1.75. The other

positive performer for the week was Santumas

Shareholdings plc which surged by 10.5 per cent in a single session to

close at Eur 2.10.

On a negative note, GO plc continued its negative saga by incurring a further two per cent

loss to end the week at Eur1.029. In the week a total of 69,435 shares were

executed over 24 transactions. Similarly, from the I.T sector, Crimsonwing plc plunged by 11 per cent

over a single session on Friday to close at Eur 0.30. The other loser for the

week was Midi plc which snapped a

six per cent loss over 3,000 shares on Tuesday, while it traded flat on Friday.

The other non-movers for the week were Middlesea Insurance plc, Plaza Centres plc and RS2 Software plc which maintained their

previous closing prices at Eur0.92, Eur1.80 and Eur0.58 respectively.

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]