MSE

Trading Report for week ending November 18, 2011

Solid

gains by large caps push index up 2.5 per cent

As opposed to last

week the Malta Stock Exchange (MSE) index closed in positive territory by

gaining a solid 2.5 per cent to end the week at 3,157.427 points. The local Index

experienced an upbeat week as it traded in the green in four out of five

sessions, in which International Hotels

Investments plc, Bank of Valletta plc and HSBC Bank Malta plc were a primary source of strength for the

broader market. Trading volume throughout the week decreased to 813,120 shares

on 107 transactions, while turnover reached just over EUR1.39m. Activity

was spread over 11 equities, in which gainers outperformed losers, as eight

appreciated in value, two edged lower and one closed unchanged.

Meanwhile, a negative sentiment prevailed in

the Malta Government Bonds, as

from the 19 active stock 17 recorded losses, while two posted minimal gains.

The 4.6% MGS 2020 was worst performer for the week as it depreciated by 1.43 per

cent. In the Corporate Bond Market, running

yields were rather mixed, as eight registered gains; five posted a loss while

17 closed flat. The 4% AX Investments 2013 issue headed the list of gainers as

it appreciated by 3.7 per cent.

In the equity market, International Hotels Investments plc closed markedly higher to

cancel last week’s heavy loss. In fact, the hotelier’s equity surged by 7.7 per

cent or EUR0.06 over three sessions to close the week at EUR0.84.

On Tuesday the share price gained 0.3 per cent and than it continued its

recovery by gaining 4.7 per cent and 2.6 per cent in the following sessions. A

total of 144,837 shares changed ownership across nine transactions.

From the financial sector, Bank of Valletta plc offered

leadership, as the equity soared by 2.5 per cent to end the week at EUR2.50.

The equity was active throughout the whole week with Wednesday being the

equity’s best trading day as it registered a strong gain of 3.3 per cent.

Turnover in the week amounted to 120,931 shares which were executed across 38

transactions.

Likewise, HSBC Bank Malta plc managed to partially cancel most of last week’s

losses by gaining 1.5 per cent. The equity shifted form negative to positive on

high volumes of 210,812 shares to end the week at EUR2.69.  On Tuesday the company announced that despite

the turbulent financial markets the Bank’s performance during the period

between July 1, 2011 to the November 15, 2011 remained broadly in line with

expectations.  

FIMBank plc was also among the

list of gainers, as the banking equity advanced by 1.3 per cent on Thursday to

close the week at $0.77. Earlier this week, through a Directors statement the company

announced that in the period between the July 1, 2011 till the announcement date

the company was mainly affected by continued turmoil in Libya, a cautious

return to normality in other parts of North Africa and deepening economic

problems around the Mediterranean rim which have been threatening the stability

of the Euro zone. The Group’s business in Libya and Egypt,

which includes the joint-venture Egypt Factors, remained safe and well under

control and, with the situation hopefully normalising, opportunities should

present themselves again in these markets.

Conversely, Lombard Bank plc slipped by a minimal of

0.4 per cent over a single session in which 64,892 shares were traded to close

the week at EUR2.73. From the

telecommunications sector, GO plc

re-positioned itself in positive ground, as its share value rose by 3.9 per

cent, thus cancelling most of last week’s losses. The equity was active on

Monday by gaining a slight 0.1 per cent. The equity built further gains in

another two sessions, during which it gained 0.8 per cent and 2.9 per cent on

Wednesday and Friday respectively.

Similarly, following weeks

of inactivity, Medserv plc rallied

by EUR0.10 or 2.6 per cent over 4,773 shares which were dealt over five

transactions. On Wednesday the company announced that as it had indicated in an

earlier announcement, it was experiencing renewed demand for its services and

thus it expects to have a profitable second half of the current year. In

addition, the company has also announced that

the Board of Directors has approved a net interim dividend of EUR0.03c per share. This will be

paid to all shareholders on the register of members of the Company after close

of business on December 15, 2011.

From

the I.T. sector both RS2 Software plc

and Crimsonwing plc appreciated in

value, as the former gained 1.7 per cent over two deals of 49,800 shares to

close at EUR0.59 while another two deals in the latter lifted the equity’s

price by 16.7 per cent on Friday to end the week at EUR0.35.

On

a negative note, Malta International

Airport plc extended to two its stream of negativity by recording a further

loss of 0.6 per cent. On Tuesday the airport operator plummeted by 2.9 per cent

which it than partially recovered on Thursday, while it closed unchanged on the

last session of the week to close at EUR1.69.

Meanwhile,

from the postal industry, Maltapost plc

closed unchanged at EUR0.98 over a single session, during which 35,000 shares

were traded across five transactions.

 

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]