Local Index up as Bank of Valletta shares rally

January 6, 2012

MSE Trading Report for week ending January 6, 2012

The Malta Stock Exchange (MSE) Index re-affirmed its positive stance as it kicked-off the first week of the year by registering a gain of 0.8 per cent to close at 3,120.920 points. Similar to last week activity was spread on four sessions, with the index trading in green territory in three out of the four sessions, with Bank of Valletta pl shares offering leadership and emerging as a key determinant to the encouraging positive close. In line with last week’s positive sentiment, from the 11 active equities five appreciated, two recorded a loss, while four closed unchanged. As opposed to last week turnover reached EUR508,609 traded across 321,729 shares, which were dealt across 117 transactions.

Meanwhile, in the Government Stocks Market running yields were mixed, as from the 14 active stocks five strengthened in value, eight edged lower, while one closed unchanged. Turnover in the week reached just over EUR2.7m of which EUR2.5m were traded in the latest long-dated 5.2 MGS 2031 issue. In the Corporate Bonds Market, activity was spread over 22 issues, which were traded over 399,834 nominal. The 5.6% Global Capital plc 2014-2016 bond headed the list of gainers as it surged by 5.1 per cent.

In the equity market, Bank of Valletta plc shares were marked as the best performers for the week, as the banking equity surged by 3.2 per cent or EUR0.08 to close the week at EUR2.58. Following weeks of ups and downs, the share price of this equity broke out to the upside, as a positive mood permeated trade for the entire week with Tuesday being the best session as the equity gained 1.2 per cent. Total trading volume amounted to 107,114 shares, which were executed across 66 transactions.

Likewise, HSBC Bank Malta plc managed to move in line with its peer as it snapped back the scant loss recorded in the previous week by registering a gain of 0.8 per cent. The equity traded on a positive track in the first two sessions of the week; while on Thursday it slipped by 1.5 per cent. In the last session of the week, the bank re-positioned itself in green ground as its share price rose by 1.9 per cent to end the week at EUR2.60. Activity was spread over 13 trades worth EUR60,620. On Tuesday, the company announced that

Mr. Alan Christopher Hugh Richards has resigned from his post as Executive Director of the Bank with effect from 1 January 2012.

On a negative note, Lombard Bank plc plunged by 3.7 per cent or EUR0.10 on Wednesday over a single trade of 1,300 shares. The equity was also active in the following session were it traded flat over 900 shares to end the week at EUR2.60.

Meanwhile, the other active bank, FIMBank plc, closed the week unchanged at $0.77 over a single session on Thursday in which 3,409 shares changed ownership across two deals. On Thursday, the company announced that the board of directors is scheduled to meet on March 12, 2012 to consider and approve the Group’s and the Bank’s audited accounts for the financial year ended December 31, 2011 and consider the declaration of a dividend.

From the aviation industry, Malta International Airport plc continued to show impetus as the equity gained a further 0.6 per cent to close the week at EUR1.70. Total activity in the week was spread over three sessions in which 42,400 shares were traded across 10 transactions. Similarly, in the last trading session for the week, International Hotels Investments plc managed to capture a minimal gain of 0.1 per cent over 55,044 shares to close at EUR0.845.

Midi plc continued their recent recovery, as for the second consecutive week their share value appreciated by a further 2.6 per cent over 62,800 shares to regain the EUR0.39 levels. Conversely, following last week’s unchanged price Go plc returned to trade in torrid waters, as 3.1 per cent or EUR0.03 was shaved off from its share value. The equity commenced trading on Wednesday were it closed flat, while it than posted the said loss on Friday to move back at EUR0.95 price level.

Meanwhile, the other non-movers for the week were Simonds Farsons Cisk plc, Maltapost plc and Middlesea Insurance plc all of which maintained their previous closing prices at EUR1.80, EUR1.00 and EUR0.80 respectively.

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]