GO, IHI and HSBC halt MSEâ


Trading Report for week ending March 16, 2012


IHI and HSBC halt MSE’s positive trend

The Malta Stock Exchange (MSE) Index

failed to sustain its recent upward trend by recording a significant loss of

1.5 per cent to end the week at 2,960.079 points. Conviction among investors

lacked throughout the week, as the index only managed to snap a gain on

Wednesday, while it traded in negative zone in all the remaining sessions. On

Friday, the index experienced the worst session as it surrendered to the heavy

losses by mainly GO plc and HSBC Bank Malta plc which waived away

its recent bullish trend. On the contrary, FIMBank

plc was the best performer of the week with an overwhelming gain of 13 per


Activity in the week was characterised

by the trading of 10 equities in which losers maintained their leadership over

gainers, as six declined in value, three registered gains and one closed the

week unchanged. Meanwhile, total turnover in the week increased further to a

significant value of just over EUR1.3m which was traded just above 1.5m shares.

In the local Government market

turnover decreased to just over EUR10.2m, traded over 20 issues. The appetite

for local sovereign debt was lower this week, as 14 issues traded lower, five

recorded minimal gains and one closed flat. The newly issued 4.3% MGS 2022 headed the list of losers

by recording a loss of 1.2 per cent. Meanwhile in the Corporate Bonds Market activity was dealt over 23 issues in which

nine gained ground, six edged lower and three closed unchanged. The best

performer for the week was the 4.8% Bank

of Valletta 2018 which gains 1.2 per cent.

In the equity market, financials experienced

a relatively negative week as from the five active shares only two captured

gains. In fact, HSBC Bank Malta plc halted

its four weeks of winning strikes as it headed southwards by recording a loss

of 3.2 per cent or EUR0.085 to close the week at EUR2.55 despite having traded

at a high of EUR2.63. The equity was active in four sessions in which it

recorded losses in three while it closed unchanged on Thursday. Total trading

volume amounted to considerable volumes of 142,893 shares which were dealt over

17 transactions.

Likewise, Lombard Bank plc slipped by a minimal 0.4 per cent on Wednesday

over 400 shares to close at EUR2.52. On Thursday, the company released its

financial statements for the year ending December 31, 2011, in which it

reported that the Group’s profit after tax amounted to EUR7.23m, down by 20 per

cent when compared to 2010. In addition, the company announced that the Board of Directors is

proposing a final gross dividend of EUR0.115 per share. Similarly, Middlesea Insurance plc extended its

losses by recording a loss of 1.4 per cent over low volumes of 883 shares to

end the week at EUR0.69.

On the contrary, FIMBank plc shares surged by a sharp 13.3 per cent or $0.10

following positive results, in addition to possible takeover talks. On

Wednesday, the equity soared by 20 per cent, while it than reversed 5.6 per

cent from the registered gains in the following session to end the week at

$0.85. On Tuesday, the company announced its results for the year ending

December 31, 2011, in which it reported that the Group’s profit after tax

increased to $9.13m, compared to the $6.74m in 2010. However, the Bank’s profit

after tax was that of $1.84m when compared to the $2.63m registered in 2010,

thus a decrease of 30 per cent. Meanwhile, the Board of Directors are recommended

a scrip dividend of a $cents 2.003884, in addition to a 1 for 25 bonus issue of

ordinary shares.


of Valletta plc shares diverged to positive territory

by recording a gain of 0.5 per cent. The equity was active in four sessions as

it appreciated on Tuesday and Thursday while it closed flat in the other

sessions to end the week at EUR2.16. A total of 26,525 shares changed ownership

across 18 deals. On Tuesday, the Bank announced that it will be issuing a

maximum amount of EUR40m in 4.25 per cent notes maturing in 2019. 

From the telecommunications sector, GO plc share price yesterday touched an

all time record low of EUR0.76 by recording a sharp loss of 9.3 per cent. The

incurred loss was reflecting the negative financial results for 2011 which were

published prior to the market open. The company published its financial

statements for the year ending December 31, 2011, in which it stated that the

Group reported a loss before taxation of EUR45.2m when compared to the EUR9.1m

loss registered in 2010. In their performance review the company stated that

the negative results were heavily impacted by the company’s indirect investment

in Forgendo Limited. In fact, the Group has accounted for losses attributable

to investment in jointly-controlled entities of EUR62.3million. Furthermore, the

board of directors stated that in such circumstances they do not recommend the

payment of a dividend.

In addition, both International Hotels Investments plc and Malta International Airport plc marked themselves on the list of

losers for the week. The former posted a loss of 3.9 per cent over two sessions

to close the week at EUR0.75, while the latter depreciated by a scant 0.7 per

cent on Friday to reach the EUR1.679 price level.

Meanwhile, Plaza Centres plc managed two snap back all the losses recorded in

the previous week, as 2.9 per cent was added to its share value, thus regaining

the EUR1.80 levels.

Finally, the non-mover for the week was

Maltapost plc which maintained its previous closing price at EUR0.91.


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]