Index turns positive by gaining one per cent

MSE Trading Report

for week ending November 4, 2011

Index turns positive

by gaining one per cent

Following two weeks of negativity, the Malta

Stock Exchange (MSE) index managed to snap a one per cent gain to end the week

at 3,120.104 points. The positive performance by HSBC Bank Malta plc (HSBC), Malta International Airport Plc and GO plc proved to be an integral

element for this week’s gain. The index experienced balanced trading as it

oscillated between positive and negative in four sessions, while it traded

unchanged in one. Trading volume in the week appeared divergent from the

previous week as it decreased to 286,455 shares which were traded over 181

transactions, while turnover amounted to EUR599,043. Activity was spread across eight equities with gainers

outperforming losers, as from the eight active equities four gained ground, one

edged lower and three closed unchanged.

Meanwhile, given the headwinds in the Eurozone most of the Malta Government Bonds were up on the week as

risk-aversion in international markets returned, hence pushing yields lower. In

fact, from the 16 active stocks, 14 traded in positive territory while two

registered minimal losses. Two long dated issues, the 5.1% MGS 2022 and the

5.5% MGS 2023 headed the list of gainers by equally gaining 1.6 per cent. In the

Corporate Bond Market, activity remained

high as turnover reached just over EUR1.03m which was traded over 27 issues. Five

of which gained ground, three recorded losses and 19 closed unchanged. The best

performer for the week was the 6.5% International Hotels Investments 2012-14

bond which gained two per cent.

In the equity market, HSBC

re-positioned itself amongst the gainers as it advanced by 2.3 per cent or EUR0.06. The bank was active in all five

trading session were it appreciated in value on Monday and Tuesday while it

posted a loss in the mid-week session. In the last two trading sessions of the

week the equity traded flat to end the week at EUR2.70. A total of 14,146

shares changed hands over 15 trades. On Friday the company announced that Mr. Alan

Richards will be relinquishing his post as Chief Executive Officer with effect

from January 1, 2012 and will be taking up a new role as Chief Executive

Officer of HSBC Indonesia. Mr. Mark Watkinson will be taking up the vacant post.

Bank of Valletta plc closed the week

unchanged at EUR2.40.This despite the fact that trading volume totalled 187,500

shares dealt over 145 deals and turnover amounting to EUR465,931. The equity

failed to hold on to its auspicious start to the week, when it surged by 6.3

per cent. In fact it captured losses in three out of the four remaining session

with Friday being marked as the worst session, as the bank’s share price got

hammered by a loss of 4 per cent. On Friday the company announced that the Board of Directors has unanimously agreed to appoint Mr. Charles

Borg as Chief Executive Officer with effect from December 19, 2011, in succession

to Tonio Depasquale, who will retire following the 2011 Annual General Meeting,

which will be held on December 16, 2011. The Bank also announced that Mr. Romeo

Cutajar will replace Mr. Borg as Chief Officer- Financial Markets and


On a negative note, the only loser for the week was Middlesea Insurance plc which lost 2.2

per cent over two trades of 1,364 shares, to close the week at EUR0.90. Meanwhile

the other active financial, FIMBank plc,

closed unchanged at $0.72. The Bank was only active during the opening two

sessions as three trades worth $11,979 were executed.

From the aviation industry, Malta International Airport plc

extended its strike of gains to four by gaining a further 2.3 per cent to reach

a new four month high of EUR1.79 and a gain of 7.8 per cent year to date.  The airport operator commenced trading on

Monday unchanged, while it gained ground on Friday following its traffic

results for the month of October. In fact, on Thursday the company announced

that passenger movements in October reached 346,480 or an increase of 4.4 per

cent, i.e. the highest number ever registered in October.

Likewise, GO plc halted its recent negative momentum by recording a gain of

four per cent or EUR0.041. The telecommunications equity kicked-off the week by

gaining two per cent, while it traded flat on Tuesday. In the mid-week session

the equity saw its price increase by a further two per cent to end the week at EUR1.07.

A total of 8,880 shares were executed over eight transactions. From the I.T.

sector, RS2 Software plc snapped a

3.5 per cent gain over two sessions to end the week at EUR0.60. A total of 14,900

shares changed ownership over two deals.

Meanwhile, the other non-mover for the

week was Plaza Centres Plc which

maintained its previous closing price at EUR1.80 in the first session of the

week over 3,800 shares which were dealt across one transaction. 

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]