MSE

Trading Report for week ending January 13, 2012

Positive

sentiment weakens  

Following three

consecutive weeks of gains, the positive run experienced by Malta Stock

Exchange Index (MSE) came to an end as the index recorded a loss of 0.5 per

cent to close the week at 3,106.588 points. This week was characterised by the

bonus share issue of Bank of Valletta

plc as eligible shareholders received their entitlement and as a result,

the share price fell to reflect the issue of the share. Meanwhile, HSBC Bank Malta plc and Go plc were a drag for the Index’s

negative close. Activity during the week witnessed the trading of nine equities

in which losers outperformed gainers, as four lurched downwards, two advanced,

while three closed the week flat. Looking at the numerical activity in the

week, turnover decreased to EUR333,740 traded over 184,325 shares   dealt

over 100 transactions.

Meanwhile, in the Government Stocks Market investors’

confidence shifted towards the positive side, as from the 18 active issues 11

appreciated, while seven edged lower. Total trading value in the week increased

further to just over EUR3.5m of which the majority of activity was once

again focused on the long-dated 5.2% MGS 2031 issue.

In

the Corporate Bonds Market, running

yields were mixed, as from the 22 active stocks nine closed higher, six lost

ground, while five closed unchanged. The 4%

AX Investments plc 2013 headed the list of gainers as it gained a sharp 4.1

per cent.

In the equity

market, HSBC Malta plc was the main

loser among the banking equities, as the Bank headed southwards by 1.2 per cent

or EUR0.03. On Tuesday, the equity commenced trading on a negative note as

it posted a loss of 0.8 per cent which it than recuperated in the following

session. On Friday, the equity lost 1.2 per cent thus closing the week at the EUR2.57.

Trading volume this week was unusually low as 7,750 shares were traded across

seven deals.

On the other

hand, Bank of Valletta plc registered

a minimal loss of 0.13 per cent, after adjusting for the bonus issue. The

equity kicked off the opening session minimally lower, with trading volume

reaching over 48,000 shares as investors flocked in to get entitlement to the

bonus share issue. Given that Monday was the last trading day for the bonus

share entitlement, on Tuesday the Bank’s share price adjusted to reflect the

bonus share issue of one share for every eight held. Following the price

adjustment, the equity’s price barely changed as it closed the week at EUR2.29. Once again,

the Bank had the lion’s share of this week’s overall trading volume as a total

of 95,855 shares worth EUR232,440 were

executed. Meanwhile the other active financial

equity, Lombard Bank plc, closed

flat at EUR2.60 over two sessions of 1,610 shares.  

From the telecommunications sector, GO plc slumped by 5.8 per cent or EUR0.055 to close

the week at EUR0.895, thus reaching an all time low. The equity was active in

three sessions in which Wednesday proved to be a sour session as the share

price tumbled by 6.3 per cent. In the following session the equity closed flat,

while it than snapped back a minimal gain of 0.6 per cent in the last session

of the week. Yesterday, the company announced that the Board of Directors instructed Forgendo Limited to

vote against the increase of

51,810,441 new common

registered shares put forward by Forthnet. Later in the afternoon

through another announcement, the company stated that 56.96 per cent voted

against the items on the agenda, while 43.97 per cent voted in favour and 0.07

per cent abstained.

From

the postal industry, Maltapost plc

depreciated by one per cent on Thursday to close the week at EUR0.99. A total of

11,389 shares changed ownership, which was traded over two sessions. On the

contrary, Malta International Airport

plc extended their recent positive run by registering an increase of 1.2

per cent. The airport operator was active in two sessions were it traded flat

in one, while it posted the said gain in the other to end the week at EUR1.72.

Following months of inactivity 6pm Holdings plc returned to trading

with a boom. Its share price soared by 25 per cent. The I.T operator was active

on Friday as a total of 21,000 shares changed ownership over four trades to

close the week at £0.40.

Meanwhile, both Medserv plc and Grand

Harbour Marina plc maintained their previous closing prices, as the former

closed at EUR3.95 over three trades worth EUR5,174, while the latter kept the EUR1.95

price level over a mere of 150 shares.  

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]