MSE

Trading Report for week ending February 3rd, 2012

Index

falls on low turnover

The Malta Stock Exchange Index (MSE)

commenced the second month of the year on a sour note, as it extended its

losses by 0.3 per cent to end the week at 3,055.802 points. Despite some  gains in the last two sessions of the week,

the Index failed to diverge into green territory, as the considerable losses by

Bank of Valletta plc and GO plc were the prime determinants for

the Index’s negative close. Conversely, Malta

International Airport plc re-gained ground to sustain its year-to-date

gains while HSBC Bank Malta plc shares

moved against the negative trend experienced by financial equities.  Turnover in the week amounted to EUR308,441

traded over 12 equities, in which gainers and non-movers tallied to three,

while fallers totalled six. Total trading volume in the week reached 161,513

shares, traded over 114 transactions.

In the Corporate Bonds Market, turnover

decreased by almost half to EUR508,262 traded over 26 issues. Running yields

opted for dissimilar directions, with five appreciating in value, nine edged

lower, while 12 closed unchanged. The 7%

Midi plc 2016-2018 denominated in Euro headed the list of gainers by

recording a gain of two per cent. Meanwhile, in the Government Bonds Market turnover declined drastically to EUR7.1m

traded over 21 stocks. Investors in the week showed impetus towards the

sovereign market, as 14 stocks closed higher, five registered a loss, while two

closed flat. Most of the trading in the week focused on the short-dated 3.6%

MGS 2013 issue in which almost 2.5 nominal dealt over 21 transactions.

From the equity

market, Bank of Valletta plc shares

cancelled all the gains recorded in the previous week by recording a loss of

1.8 per cent to end the week at EUR2.21. The Bank’s shares experienced a torrid

week with Wednesday’s session being the most unpleasant, as the equity plunged

by 2.2 per cent. The equity was once again the most liquid, as a total of

53,313 shares were traded across a total of 44 transactions. On Tuesday, the

company announced that following the allotment of 30 million bonus shares, the

total number of voting rights has increased to 270 million. Furthermore, on

Friday the company stated that the newly appointed Chief Executive Officer,

Charles Borg, has presented proposals to the board of directors recommending

certain changes in the organisational structure.

Likewise, Lombard Bank plc declined by 0.8 per

cent. The equity was active during three sessions with the price oscillating from

negative to positive to close the week at EUR2.55. A total of 15,858 shares

changed ownership across nine trades. Similarly, FIMBank plc lurched by 0.4 per cent over a single session on Monday

to close at the $0.765 price levels.

On the contrary, HSBC Bank Malta plc shares extended

their positive stance to a second consecutive week by recording a gain of 0.4

per cent. The equity was active throughout the week as it headed southwards in

the first three sessions, but managed to bounce back in the last two days to

end the week at EUR2.57. Activity in the week was spread across 16 deals worth EUR55,708

as 21,856 shares changed hands.

From the telecommunications sector, GO plc re-affirmed its negative

momentum by registering another decline of 1.1 per cent, thus plunging by 9.2

per cent year-to-date. The equity kicked off the week on a negative note by

recording a sharp loss of  5.6 per cent

which it than managed to partially offset by gaining 4.7 per cent in the

following session to close the week at EUR0.89. On Tuesday, the company

announced that Mr. Stuart Kelly would not be taking the post of Chief

Commercial Officer as was announced previously due to personal reasons. While

on Friday, it announced that Dr. Montasser Ouaili, a non-Executive Director of the Company has

relinquished his post of Director of the Company with immediate effect and will

be replaced by Mr. Nikhil Prakash Patil.

From the

postal industry, Maltapost plc plummeted

by four per cent over two sessions, in which a total of 2,292 shares were

traded over three deals to end the week at EUR0.96. Middlesea Insurance plc depreciated by

a further 0.1 per cent following last week’s significant loss. The equity was

active in two sessions as 2,300 shares were dealt over three trades to close at

EUR0.719.

On a positive note, Malta International Airport plc re-positioned itself in positive

territory by snapping back last week’s losses, thus re-affirming the 3.6 per

cent year-to-date gains. The airport operator was marked as the second liquid

equity, as a total of 35,260 shares changed hands over 14 deals to close the

week at EUR1.75. From the beverage sector, Simonds

Farsons Cisk plc advanced by 1.7 per cent or EUR0.03 on Thursday to move

towards the EUR1.83 price levels.    

Meanwhile, the

non-movers for the week were, Plaza

Centres plc, Island Hotels Group

Holdings plc and Santumas

Shareholdings plc, which maintained their previous closing prices at EUR1.80,

EUR0.85 and EUR2.10 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].