MSE

Trading Report for week ending December 9, 2011

Local

equity Index down for the third consecutive week

The Malta Stock

Exchange (MSE) Index held up to its recent string of negative performances as

it closed lower for the third week in succession. The negative sentiment was

spread across all sectors that make up the local equity Index, as out of the

seven active issues fived recorded losses, one traded flat, while HSBC Bank Malta plc (HSBC) was the only

positive performer. This week trading on the MSE took place across four

sessions, due to a public holiday on Thursday. Investors were unconvinced where

to head as the local Index swung from negative to positive, however volatility

was nowhere near that experienced by foreign indices.

In fact, global

markets were held on their toes this week as investors awaited some concrete

outcomes from the EU Summit. However, initially the result did not meet

investors’ expectations and thus investors’ confidence towards global growth

remained scratched but markets recovered somewhat on Friday. Investors grew

inpatient as the European debt problems continue to loom the markets, hence

sending the Euro lower against the US Dollar, despite some respite on Friday.

On Thursday, as expected the head of the ECB, Mario Draghi announced another 25

basis point interest rate cut to 1 per cent. Following this decrease in

interest rates, local Government Stock prices rallied yesterday, as nearly all

active issues gained ground. On the week, Government Bond prices were mixed but

swayed more to the positive side as out of 21 issues only six closed lower.

Another 12 gained with the 5.1 MGS 2021 being the top performer as its price

jumped by 2.6 per cent to EUR105.52, hence pushing running yield lower to

just over 4.8 per cent.

Meanwhile in the Corporate Bonds Market turnover declined heavily to nearly EUR0.4m,

down from EUR1.04m traded last week. On a general note, prices were skewed to

the upside with the exception of two long-dated issues that shed a mere 0.1 per

cent. On the contrary, three bonds issued by Corinthia Group plc and its subsidiaries performed exceptionally

well. The 6.75% Corinthia Finance 2012 headed

the list of gainers with a 2 per cent gain as increased demand pushed the

security’s price to EUR100.

In the local equity

market, the MSE Index shed 0.72 per cent as it closed the week below 3,100

points. Losses recorded by this week’s losers were significantly high with Malta International Airport plc shares

losing as much as 6.9 per cent or EUR0.115. However trading

volume was on the low side as two deals of 2,316 shares were executed. On Monday

the Company announced the Traffic Results for the month of November, which

showed an increase of 0.9 per cent in passenger movements over the

corresponding month of last year.

In the banking sector,

61,300 FIMBank plc shares were

traded this week. The Bank’s share price lost 4 per cent as it ended the week

at $0.74 after having traded at a weekly high of $0.75. Bank of Valletta plc (BOV) shares also followed the negative trend

on the local market as the equity closed down by a mere 0.36 per cent to finish

the week at EUR2.501. A total of 45,000 BOV shares changed hands over 31

transactions as the share price hovered between a weekly high of EUR2.519 and a

low of EUR2.50. Since the beginning of the year, the equity returned a negative

of 22.2 per cent.

Notwithstanding a negative start to the week,

HSBC shares managed to snap a meagre

0.2 per cent to end the short trading week at EUR2.585. A total of 32,162

shares were traded with over three quarters of the volume traded taking place

on Monday during which the equity lost 1.16 per cent. The equity swiftly erased

this loss on Tuesday on thin volumes while it added further gains yesterday.

GO

plc shares lost a further 5 per cent as trading volumes remained high. In

fact, a total of 55,556 shares were traded over 22 deals. This week the equity

touched a new all time low of EUR0.95 resulting in a 51 per cent year-to-date

decline.

MaltaPost

plc lost just over 3 per cent or EUR0.03 to end the week under review at EUR0.95.

Slightly over 9,000 shares were dealt over five deals. Meanwhile RS2 Software plc traded flat at EUR0.59

as four transactions of 38,000 shares were executed.

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 info@atlasjmfs.com