MSE

Trading Report for week ending February 9th, 2012

Losses

by large caps impacts Index negatively

The Malta Stock Exchange Index (MSE) extended its recent negative

stance by recording a significant loss of two per cent to close the week at

2,994.256 points, thus returning a negative 3.3 per cent year to date.

Following a shortened week due to Friday’s holiday the Index experienced a

torrid week as it traded in negative territory in three out of four sessions.

The fall was also due to the considerable losses recorded amongst highly

capitalised equities, where International

Hotels Investments plc headed the list of losers. The week witnessed the

trading of 11 equities, in which losers outperformer gainers, as eight

depreciated in value, two posted gains, while Simonds Farsons Cisk plc closed unchanged.

In the Corporate Bonds Market, turnover declined

further this week to nearly EUR0.4m. Out of the 28 active issues, only eight

bonds recorded price changes. The 5.35%

Bank of Valletta 2019 lost 0.5 per cent while the 7% FIMBank EUR 2012 — 2019 gained almost 1 per cent. Meanwhile, in

the Government Bonds Market on a

general note bond prices retreated slightly, as upbeat international equity

markets pushed down prices of safe Government Bonds, which tend to be inversely

related. However, turnover was significantly lower on the week reaching EUR3m,

down from over EUR7m last week. Fourteen issues were active with the 5.1% MGS

2014 being the most active.

From the equity

market, in the week financials were on the downside with the exception of Bank of Valletta plc. In fact, the

banking equity recorded a scant gain of 0.2 per cent to close the week at EUR2.215.

The equity was active throughout the whole week as it shifted from positive to

negative in the first two sessions, while it close flat and posted a minimal

gain in the following two. This week a total of 30,525 shares changed ownership

over 35 transactions. Earlier in the week Fitch Ratings, a rating agency,

affirmed the Bank’s Long-Term Issuer Default at BBB+, which reflects BOV’s

strong funding base, satisfactory liquidity and adequate profitability. Fitch

added that the ratings reflect the Bank’s reliance on the country’s small and

concentrated economy and its asset quality.

On the contrary, HSBC Bank Malta plc surrendered 0.8 per

cent of its recent gains to close the week at EUR2.55. The equity was active in

three sessions as it incurred the weekly loss on both Monday and Wednesday,

while it recoded a minimal gain of 0.2 per cent on Tuesday. Activity was

relatively weak, as total turnover amounted to 7,490 shares traded across nine

deals.  Likewise, FIMBank plc continued its gradual fall by registering an additional

loss of two per cent on Wednesday to reach the $0.75 price levels.

Similarly,

investors’ negative mood towards financials darkened further as Middlesea plc shares plummeted by a

further 2.6 per cent on Wednesday to end the week at EUR0.70. In the week, a

total of 10,176 shares were traded across three transactions. On Monday, the

company announced that the board of directors is scheduled to meet on Tuesday

February 28, 2012 for the consideration of and approval of the financial

statements for the year ended December 31, 2011 and for the recommendation of

any possible dividend.  The other active

financial, Lombard Bank plc,

declined by a further 0.8 per cent over 20,390 shares, which were executed

across three trades to end the week at EUR2.53.

From the hoteliers

industry, International Hotels

Investments plc plunged by a heavy 8.5 per cent over a single session on

Monday to close the week at EUR0.75. A total of 8,244 shares were traded over

five transactions. Meanwhile, from the telecommunications sector, Go plc faltered by a further 3.4 per

cent or EUR0.03 to close at EUR0.86. The equity was active in three sessions

with Tuesday being the worst session as it recorded a loss of 3.3 per cent.

During the week,

equities within the I.T. industry fell sharply out of favour. In fact, Crimsonwing plc slumped by a heavy 18.2

per cent over high volumes of 61,746 shares to end the week at a new record low

of EUR0.18. Likewise, following the late positive stance, RS2 Software plc shares

dwindled by a sharp 8.3 per cent on Monday to end the week at EUR0.60. The

equity was active in two sessions this week were a total of 70,000 shares were

traded over six transactions.

On a positive note,

Maltapost plc snapped back most of

its recent losses by gaining three per cent over thin trading of 512 shares to

re-gain the EUR0.99 price levels.

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]