MSE

Trading Report for week ending December 16, 2011

Index

extends its negative saga as HSBC and IHI fall

The Malta Stock

Exchange (MSE) Index extended its negativity to four consecutive weeks by

posting a sharp   loss of 1.1 per cent to

end the week at 3,060.233 points. Following a shortened week due to Tuesday’s

national holiday, the index endured a torrid week as it traded in negative zone

in three out of four sessions. Thursday’s session proved the prime cause for

the index negative close as the sharp losses incurred by HSBC Bank Malta plc and International

Hotels Investments plc dragged the index towards a significant loss of

0.949 per cent. Activity during the week was spread across nine equities in

which losers’ outperformed gainers, as five depreciated while four traded in

positive territory. Total turnover reached EUR172,623 traded over 81,956 shares, which

were executed across 52 transactions. 

Meanwhile, as

European leaders struggled to reach a convincing deal for the debt crisis,

local Government stocks tended to

move in line with most of the European sovereign bonds, as from the 19 active

issues 17 appreciated, while two registered a minimal loss. In the week

liquidity reached high volumes of just over 8.6m with the medium dated 4.3% MGS 2016 being

the most active as trading value almost reached EUR5.2. In the Corporate Bonds Market, 27 issues were

active, of which gainers and losers tallied to seven while non-movers amounted

to 13 with the 5.6% Global Capital 2014-2016 heading the list of losers as it

slid by 3.6 per cent.

In the equity

market, HSBC Bank Malta plc contracted by a sharp loss of 3.3

per cent or EUR0.085 over two sessions as it posted a loss of 1.4 per cent and

nearly two per cent on Monday and Thursday respectively. A total of 27,990

shares changed hands over 16 transactions to end the week at EUR2.50. Bank of Valletta plc shares headed

towards a similar direction but recorded a minimal loss of 0.04 per cent to end

the week at a similar EUR2.50 price level. The banking equity was active

throughout the week as it registered gains in three sessions, while it posted a

loss of 1.2 per cent on Wednesday. In the week the equity continued to have the

lion’s share as total volume reached 34,053 of which a substantial high volume

of 20,008 were traded in the mid-week session.

On a positive note, FIMBank plc recouped almost all the losses incurred in the previous

week as it advanced by 3.9 per cent on Wednesday to restore back the $0.769

level.

Following two weeks of inactivity, International Hotels Investments plc

was active in a single session on Thursday, were it dwindled by 2.2 per cent

over 1,085 shares to close the week at EUR0.83. Likewise from the beverage

sector, Simonds Farsons Cisk plc

plummeted by five per cent over a single session on Wednesday to close at EUR1.71,

while Crimsonwing plc plunged by 7.4

per cent over 2,500 shares to end the week at EUR0.25.

From the aviation

industry, following last week’s severe loss Malta International Airport plc managed to get back on track by

gaining 2.2 per cent on Wednesday to reach the EUR1.60 level. This however on a total of

2,234 shares dealt over two trades. Similarly, in the last session of the week Maltapost plc appreciated by a mere

0.53 per cent over one trade worth EUR2,160 to close the week at EUR0.955.

Finally, following three weeks of negativity

Go plc shares bounced back by

posting a gain of 5.3 per cent to reach back the EUR1.00 level, over low

volumes of 900 shares. On Wednesday the company announced that Forthnet, a

company in which Go plc has an indirect investment, was holding an

extraordinary general meeting on the following day, Thursday, December 15, to

discuss possible developments within the company. Another company announcement

that was published on the following day stated that further discussions and

decision taking on the items of the agenda discussed in the previous day were

postponed to Friday January 13, 2012. 

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]