MSE

Trading Report for week ending March 23, 2012

Index

turns positive as BOV and GO shares gain ground

Following last week’s significant loss

the Malta Stock Exchange (MSE) Index managed to re-position itself in green

ground with a minimal gain of 0.4 per cent, thus ending the week at 2,972.092

points. The Index registered three positive sessions out of four as Monday was

a public holiday, with the first session of the week being a key determinant

for the positive close. The sustainers for the week were mainly Bank of Valletta plc and GO plc with the latter managing to snap

back most of the losses incurred in the previous week. On the contrary, for the

second week in a row HSBC Bank Malta plc

shares lacked conviction by registering further declines throughout the week. The

index witnessed the trading of nine equities in which gainers outperformed

losers, as five advanced in value, two edged lower, while the remaining two

closed unchanged. Meanwhile, total turnover in the week decreased drastically

to  EUR624,027 traded over a total of

603,852 shares with FIMBank plc heading

the lion’s share.

In the local Government Stocks market

turnover more than doubled to reach just over EUR21.7m, traded over 19 issues.

In line with last week supply was strong and thus yields improved as 13 issues

traded in negative territory, five posted minimal gains and the rest closed

flat. The most liquid issue for the week was the 4.6% MGS 2020 with total trading volume amounting to just above

4.2m nominal. Meanwhile, in the Corporate

Bonds Market activity was spread across 22 stocks in which gainers and

non-movers tallied to seven, while losers totalled to eight. The 4% AX Investments 2013 headed the list

of gainers by recording a significant gain of 4.1 per cent.

In the equity market, Bank of Valletta plc headed the list of financials with a

significant gain of 2.8 per cent, following last week’s announcement that the

Bank will offer EUR40m in 4.25 per cent notes maturing in 2019. The equity

experienced a relatively positive week with Wednesday’s session emerging as the

most supportive, as it recorded a 2.3 per cent gain or EUR0.05, while on Friday

the equity suffered a loss of 0.7 per cent to end the week at EUR2.22. Turnover

in the week amounted to 88,138 shares which were dealt over 37 transactions.

Likewise, following last week’s sharp gain, FIMBank plc shares re-affirmed their

positive momentum by recording an additional gain of 2.4 per cent. The equity

was active in three sessions, as it shifted from positive to negative, but closed

higher on Friday at $0.87. Once again, the dollar denominated equity was the

most active as a total of 392,369 shares changed ownership across 12 deals.

Similarly, Middlesea Insurance plc

managed to erase all losses incurred in the previous week by gaining 1.5 per

cent over a single session to re-touch the EUR0.70 price levels.

Conversely, HSBC Bank Malta plc endured another torrid week as it recorded an

additional loss of just below two per cent. The equity contracted the said loss

on Wednesday, while it than managed to gain a scant 0.08 per cent on Friday to

end the week at EUR2.502. The other active financial was Lombard Bank plc, which on a mere 810 shares saw its share price

dip by 0.8 per cent on two deals to close the week at EUR2.50.

On a positive note, GO plc shares managed to partially offset last week’s sharp loss by

gaining 5.3 per cent or EUR0.04, and close Friday at EUR0.80. The

telecommunications equity was active in four sessions in which a total of

42,520 shares were dealt over 19 deals.

Another gainer this week was Malta International Airport plc which

added 1.3 per cent to its share value over two sessions to close the week at

the EUR1.70 price level. On Thursday, the company announced its financial

results for the year ending December 31, 2011, and reported that profits before

taxation increased from EUR16.97m in the 2010 to EUR18.92m in 2011, thus an

increase of 11 per cent.

The board of directors commented that the

positive results mainly reflect the increased volume in passenger traffic which

increased by 6.5 per cent over the record year figures of 2010. Furthermore,

the board also resolved to propose to the shareholders a further net dividend

of EUR0.04 per share in addition to the interim net dividend of EUR0.03 already

paid in September 2011. 

The non-movers for the week were Plaza Centres plc and Island Hotels Group Holdings plc which maintained

their previous trading prices at EUR1.80 and EUR0.85 respectively.

Finally, on Wednesday Medserv plc announced its financial statements for the year ending

December 31, 2011, in which in reported that profit before tax amounted to EUR1

million when compared to the EUR32,287 in 2010. In addition, the board of

directors is proposing the approval by shareholders for the payment of a net

dividend of EUR0.03 per ordinary share.  

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]