MSE

Trading Report for week ending November 11, 2011

Large caps

push index to a loss of 1.3 per cent

The Malta Stock

Exchange (MSE) index pared last week’s gain by recording a loss of 1.3 per cent

to end the session at 3,079.798 points. In the week the index mood swayed from

positive to negative territory. The negative performance by HSBC Bank Malta plc (HSBC) and International Hotels Investments plc emerged to be a drag on the broader

market, and thus on the index negative close. Trading volume in the week opted

for a dissimilar direction from the previous week as it increased to 980,999

shares which were traded over 206 transactions, while turnover reached just

over EUR1.65m. The week

witnessed the trading of 10 equities with losers outperforming gainers, as

seven depreciated in value, two gained ground and one closed unchanged.

Meanwhile, running yields within the Malta

Government Bonds experienced a

relatively balanced week, as from the 20 active stocks, 11 edged lower, while

nine gained ground. The medium dated 7.8% MGS 2018 was the best performer for

the week as it appreciated by 1.4 per cent. On Thursday the Treasury announced

the prices for the new

Malta Government Stocks issues, the 4.25% MGS 2017 (III) with a yield to

maturity of 3.546 per cent and the 5.2% MGS 2031 (I) with a yield to maturity

of 5.139 per cent. The offering prices are those of EUR103.75 and EUR100.75 respectively.

In the Corporate

Bond Market, activity decreased to EUR353,205 traded over 23 issues, of

which five traded in positive territory, seven lost ground while 13 closed

unchanged. The 7.5% MIH 2012-2014 was the worst performer for the week as it

contracted sharply by three per cent.

In the equity

market, from the financial sector, FIMBank

plc headed the list of gainers, as the financial equity surged by 5.6 per

cent. A mere of 650 shares were traded in the mid-week session to close at

$0.76. Similarly, Bank of Valletta plc

managed to register a gain of 1.7 per cent or EUR0.04 to close the week at EUR2.44. Bank of

Valletta’s share price experienced a positive week, as it traded in positive

territory in three sessions with Thursday being the best session as the equity

gained 1.04 per cent. The equity had the lion’s share a total trading value

amounted to EUR862,761 traded over 357,271 shares which were executed across

145 deals.

On the contrary, HSBC Bank Malta

plc diverged to negative territory,

as it failed to maintain last week’s gains by posting a loss of 1.9 per cent.

The equity was active throughout the whole week were it shifted from negative

to positive in the first three session, while it closed flat on Thursday and

Friday to close the week at EUR2.65. Likewise, Lombard Bank plc slipped by a meager of 0.4 per cent on Tuesday over

21,508 shares to end the week at EUR2.74.

From the hoteliers’ sector, International Hotels

Investments plc

was among the heavy losers of the week, as the equity plunged by 4.3 per cent

to end the week at EUR0.78. The equity

was active in two sessions were it registered a minimal gain on Monday, while

it declined in value by 4.8 per cent on Thursday. From the aviation industry, Malta International Airport plc halted its recent upward trend, as

the equity’s share value plummeted by five per cent on Tuesday to close at EUR1.70.

The incurred loss was seen as a negative response to the company’s

announcement, released on Monday, were it stated that it will waive away landing fees from November 2011 to March

2012 to all scheduled airlines.   

Following

last week’s gain, GO plc

re-positioned itself amongst the losers, as the telecommunications equity

snapped last week’s rally and closed lower by 4.8 per cent over three sessions

to end the week at EUR1.02.

On Friday, the company released a press release were it stated during the

period up to the September 30, 2011, which represent the first nine months of

the financial year; the company maintained a robust operating performance by

sustaining a healthy level of profitability and cash generation. It continued

by stating that this level of performance has been retained within a substantially

more intense local competitive environment and a challenging economic climate,

both locally as well as internationally. In announcing the results for the six

months ended 30 June 2011, the Company reported a significant charge

on its 50% shareholding in Forgendo. Forgendo

currently holds 41.27% of the issued share capital of Forthnet S.A. The Company

continues to actively monitor this investment with a view of protecting its

long term value.

RS2

Software plc

cancelled last week’s gains by losing 3.3 per cent to reach back the EUR0.58

levels over 6,000 shares which were dealt over two trades. From the postal

industry, Maltapost plc was also on

the list of losers as its share price contracted by one per cent on Monday to

close at EUR0.98. On Monday, the company announced that the Board of Directors

will be meeting on Thursday, December, 1st, 2011 to approved the

financial statements for the year ended September, 30, 2011.

Meanwhile, the non-mover for the week was Simonds Farsons Cisk plc which

maintained the EUR1.83 level over thin trading of 300 shares which were dealt

over a single session on Monday.

 

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]