MSE Trading Report for week ending May 18, 2012

Financials drag index marginally

lower

Following

last week’s marginal rise the Malta

Stock

Exchange

(MSE) Index

retreated from its positive

position by recording a loss of 0.2 per cent to end the week at 2,971.832

points. Despite a relatively encouraging week with the index trading on higher

grounds in three sessions, the considerable losses incurred in the mid-week

session and on Thursday pushed the index towards the red zone. This week the

bears pulled down the majority of the financials equities, namely Bank

of Valletta plc, HSBC

Bank Malta plc,

Lombard Bank plc and Middlesea

Insurance plc. Conversely, GO

plc recorded a significant gain in

its share price following weeks of volatility.

Activity

throughout the week was characterised by eight equities being active, in which

losers outperformed gainers as four depreciated in value, three gained ground

and the other traded unchanged. Total trading value in the week amounted to just

over EUR1.15m which were traded over 114 transactions consisting of just above

1.3m shares.

In

the local

Government stock

market as opposed to last week, participants

showed their lack of conviction, as from the 19 active stocks 10 closed lower,

while six recorded minimal gains. In the week total turnover reached EUR13.7m

with the 6.65% MGS 2016 and the long-dated 4.6%

MGS 2020 emerging as the most liquid as

total trading value between them amounted to just over EUR8.7m. Meanwhile, in

the Corporate

Bonds

market yields were mixed, as from the 19 active issues three gained ground, six

edged lower and 10 closed unchanged. The 6.25%

IHI 2015-2019 issue was the worst performer

for the week with a loss of three per cent.

In

the equity market, Bank

of Valletta plc closed the week lower by 1.9 per

cent or EUR0.04 to move in the EUR2.08 price level. The banking equity lacked

confidence throughout the week as it only managed to gain ground on Tuesday

while it faltered gradually in all other sessions. Total trading volume

amounted to 106,391 shares which were executed over 49 trades.

Likewise,

HSBC

Bank Malta plc shares fell out of favour with a

loss of just below two per cent on Thursday. The equity was active in three

sessions were it registered a minimal gain in one session, incurred the said loss

in the other, while trading flat on Friday to end the week at EUR2.50. A total

of 21,110 shares changed hands over 12 transactions.

In

line with its peers, Lombard

Bank plc re-affirmed its negative

momentum by recording a further loss of 0.9 per cent. The equity succumbed to

selling pressure as it drifted lower in three sessions, while it than managed

to snap back most of the losses by recording a gain of two per cent on Friday

to close the week at the EUR2.349 price levels. Similarly, the other active financial,

Middlesea

Insurance plc, emerged as the primary laggard

for the week with a sharp loss of 5.8 per cent. A total of 5,566 shares were

dealt over a single session to end the week at EUR0.65.

On

a positive note, from the telecommunications sector GO

plc

protracted last week’s upbeat tone by recording a staggering gain of 14.8 per

cent to re-touch the EUR0.85 price levels. The equity showed impetus throughout

the week as from the five active sessions it recorded significant gains in

three sessions with Friday’s session being the most noted as the equity

advanced by 8.9 per cent. This week the equity captured the lion’s share as

activity was spread on high volumes of 892,178 shares which were traded over 34

deals.

From

the hotelier’s sector, International

Hotels Investments plc shares were snuffed out with

buying interest as the equity posted a 2.4 per cent gain on Monday to close the

week at EUR0.84. Total trading value amounted to EUR227,763 traded over two

sessions of 275,063 shares.

The other positive performer for

the week was Malta International Airport plc, which managed to close the week

in green ground in the last minutes of trading on Friday by recording a gain of

1.2 per cent over a mere  500 shares to

end the week at EUR1.75. On Friday, the company announced that in line with its

forecasts, in the first quarter of the year passenger movements were down by

4.7 per cent when compared to those of the previous year. However, passenger movements

showed an increase in April 2012 of 1.4% bringing the total passenger movements

for the first four months of the year to 2.6% less than the amount for the same period last year.

Finally, the non-mover for the

week was Island Hotels Group Holdings plc which closed the week flat at EUR0.85

over a single session of 500 shares. On Wednesday the company announced that Buttigieg

Holdings Limited, in which the company has a 50 per cent shareholding, signed a

Franchise Agreement with Costa International Limited granting it the exclusive

development and operating rights for Costa Coffee Shops in Malta.

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]