Index turns positive as financials gain ground
MSE Trading Report for week ending April 5, 2012
Index turns positive as financials gain ground
The Malta Stock Exchange (MSE) Index closed the first week of April on a positive note as it snapped a shy gain of 0.4 per cent to end the week at 2,950.06 points. Following the shortened week due to Good Friday, the index managed to rebound some of last week’s losses with financials emerging as a primary source of support to the broader market. In fact, after struggling to find direction in the previous week Bank of Valetta plc ended the week higher, while HSBC Bank Malta plc and FIMBank plc sustained their bullish trend with further gains. Conversely, GO plc detached itself from the list of gainers with a sharp loss to touch new record lows. The week witnessed the trading of 11 equities, in which gainers outperformed losers as four advanced in value, three edged lower while the remaining four closed unchanged. Turnover in the week decreased to EUR579,714 traded across 96 transactions totalling 520,731 shares.
In the local Government Stocks, contrary to recent weeks investors’ sentiment seems to have bolstered, as from the 18 active stocks 11 closed higher, while six posted a loss and the other closed unchanged. Turnover in the week amounted to impressive figures of just over EUR45.3m, in which 38 per cent were traded in the medium dated 4.6% MGS 2020. Meanwhile, in the Corporate Bonds Market turnover decreased to EUR649,158 traded over 25 issues, in which 10 traded in positive territory, six declined in value and nine closed flat. The 6.25% International Hotel Investments 2015-2019 headed the list of gainers with a gain of two per cent.
In the equity market, Bank of Valletta plc reversed some of last week’s sharp losses by gaining 0.9 per cent or EUR0.02 to close the week at EUR2.14. The equity showed impetus on Monday and Thursday by recording gains of 0.5 per cent and 0.9 per cent respectively, while it posted a gain and closed flat in other sessions. In the week, the Bank regained the lion’s share as total trading volume amounted to 122,106 shares which were executed across 39 transactions.
In line with its peer, HSBC Bank Malta plc sustained last week’s gain as it added 0.9 per cent to its share value, thus re-touching the EUR2.54 price levels. The equity was active in all four sessions, closing higher in three, while recording a loss on Wednesday. A total of 10 trades worth EUR62,293 were dealt across 24,700 shares. On Thursday, the company presented its resolutions to be considered at the forthcoming Annual General Meeting which will be held on Wednesday, 18 April 2012.
The other active bank was FIMBank plc which fetched a new record high for the year with a further gain of 3.5 per cent. The equity was active over two sessions as it recorded gains over a total of 116,000 shares to end the week at $0.88. On Thursday, the company announced that Mr. Gerard Lohier and Mr. Pierre-Olivier Fragnière have resigned as directors with effect from April 4, 2012. Meanwhile, the other active financial was Middlesea Insurance plc which traded flat in one session to close the week at EUR0.70.
From the beverage sector, Simonds Farsons Cisk plc saw its share value increase by 2.9 per cent on Tuesday, as a total of 18,369 shares changed hands over three deals to end the week at EUR1.77. Conversely, GO plc plummeted by 8.2 per cent, thus wiping-out all gains registered in the previous week. On Tuesday, the telecommunications equity came under selling pressure as it closed markedly lower by just below 10 per cent, reaching an intra-week all time low of EUR0.756. In the last two sessions it managed to offset some of the losses by registering a gain of 1.8 per cent to close the week at the EUR0.77 price level.
Likewise, both Maltapost plc and Crimsonwing plc closed the week lower, with the former registering a loss of 1.1 per cent over a single session to close at EUR0.93, while the latter headed southwards by a sharp 11.1 per cent to end the week at EUR0.16.
The other non-movers of the week were Malta International Airport plc, Medserv plc and RS2 Software plc which maintained their previous closing prices at EUR1.70, EUR3.95 and EUR0.55 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]