MSE

Trading Report for week ending May 11, 2012

High

turnover in local government stocks

The Malta Stock Exchange (MSE) Index maintained its positive run as it

registered a rise of minimal rise 0.02 per cent, closing at 2,978.843 points. The

equity market experienced a mixed week as it gained ground on Monday and Friday

while trading in negative territory during three sessions. GO plc and Malta International Airport were the only positive

performers during the week, while the share price of MIDI plc and Lombard Bank lost ground

Total turnover on the exchange reached

nearly EUR31million this week compared to EUR7.04m registered last week.

Trading in the equity market shrunk to EUR566,000 while trading in the local Government Stocks market reached EUR29.6

million. Meanwhile, turnover in the Corporate

Bonds market was slightly up at EUR571,000.

As risk aversion returned on a global

scale, local investors reached out for local Government stock and as a result

in general prices rose and yields fell. Trading in these securities was

concentrated on four issued which between them totalled over EUR24million. In

total twenty government stocks traded this week compared to seventeen corporate

bonds.

In the equity market, nine equities

were active once again this week, as gainers and losers tallied at two, while

the remaining five equities closed unchanged.

MIDI

plc was the worst performance for the week as the

share price lost 2.86 per cent, at EUR0.34, on substantial volume of 200,000

shares on one deal. This volume represents 40 per cent of the total traded

volume for the week.

Likewise, the share price of Lombard Bank plc fell by 1.25 per cent

and closed the week at EUR2.37. Trading in this equity was low at just of eight

thousand shares, traded on two deals.

On a positive note, Go plc gained nearly four per cent and

recovered most of the previous week’s loss. The share price recovered to close

at EUR0.74 on a volume of 66,000 shares spread on 30 deals.

During the week the share price of

Malta International Airport gained a mere 0.6 per cent on five deals totalling

29,000 shares.

The two major banks retained last week’s

closing prices despite the relatively high volume traded. The share price of Bank of Valletta plc (BOV) closed the week at EUR2.12,

having traded at a high of EUR2.15. Trading was relatively high on Monday and

Tuesday but dwindled to 1,000 shares on Friday as the total shares traded in

the week amounted to just under 82,000 shares.

Likewise, the shares price of HSBC Bank Malta plc closed the week

flat at EUR2.55, but traded at a high of EUR2.58 and a low of EUR2.50. Volume

traded reached 60,000 shares, ninety per cent of which was traded on Monday.

The directors this week issued their Interim Statement in which they stated

that HSBC Bank Malta delivered a solid

financial performance during the period January 1, 2012 and May 11, 2012, with

improved profitability in the life insurance business. The Bank’s overall cost

efficiency ratio is showing an improvement as growth in operating income

outpaced expenditure. The directors further stated that the Bank continues to

provide support to its borrowers and security for its depositors.

Middlesea

plc, Maltapost

plc and International Hotel

Investments plc (IHI), closed the week unchanged at EUR0.69, EUR0.96 and EUR0.82

respectively. Trading volume in IHI was relatively high at just under 60,000

shares while insignificant in the other two equities.

In their Interim Directors’ Statement,

the directors of Middlesea Insurance plc

announced that the first quarter of 2012 has been characterised by a positive

result emerging on the Group’s life and non-life portfolios.

IHI

also issued their Interim Directors’ Statement, in which they stated that there

has been a marked improvement in the performance of IHI-owned hotels during the

first quarter of 2012 compared to the same period last year.

MaltaPost plc announced that for

the year six months to March 31, 2012 the company recorded an increase in turnover

of 3.1 per cent reaching EUR11m, up from EUR10.7m recorded in 2011. However,

profit before tax fell to EUR502,000 for the six months from EUR1.68m registered

for the same period last year. Meanwhile, total assets increased by 7.9 per

cent to EUR29.6 million.  

During the week, FIMBank Plc, Malta

International Airport and Go plc held their respective Annual General Meeting.

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]