MSE

Trading Report for week ending June 8, 2012

Go,

HSBC and MIA lift index higher

For the third consecutive week the Malta Stock Exchange (MSE) Index sustained

its positivity with a further gain of 0.6 per cent to end the week at 3,045.103

points. Following the shortened week due to Thursday’s national holiday the

index displayed strength, as it appreciated in all four sessions, but mainly on

Monday and Tuesday with gains of 0.27 per cent and 0.14 per cent respectively. The

broader market was supported by GO plc

which maintained its bullish trend, as the equity experienced renewed buying

interest while HSBC Bank Malta plc

halted its stream of negative performances with a markable gain. Conversely,

both FIMBank plc and Lombard plc were threatened by selling pressure,

with the latter closing lower for the fifth week in a row.

Total trading value for the week

amounted to EUR543,421 traded over nine equities, in which four declined in

value, three traded in positive territory, while the remaining two closed unchanged.

Furthermore, a total of 363,323 shares were executed across 100 transactions.

In the local Government stock market, investors’ were reluctant in

offering support towards local sovereign debt, as from the 22 active stocks 14

closed lower, while eight posted minimal gains. Total turnover for the week

amounted to just over EUR15.1m, of which EUR5.3m were traded within the

long-dated 4.6% MGS 2020. Meanwhile, on Tuesday the Treasury announced the

issuance of three stocks for an aggregate amount of EUR120m. The new stocks in

issuance are the 3.75% MGS 2017, the 5.1% MGS 2029, and the 4.3% MGS 2022

fungibility issue. The prices will be announced on Thursday June14, 2012 and

application open on Monday June 18, 2012. Investors

should read the prospectus before considering investing in these issues.

In the Corporate Bonds yields took different directions, as from the 20

active issues, five gained ground, six edged lower, while nine closed

unchanged. Total trading volume for the week amounted to just over 1.3m nominal

with the 7.15% MIH Eur 2015-2017 heading the list of losers, as it contracted

by 3.5 per cent.

In the equity market, GO plc shares maintained their upbeat

trend with a further gain of 5.4 per cent or EUR0.05, thus registering a

staggering gain of 38.6 per cent over five weeks from its record lows of EUR0.70.

The equity was active in all four sessions, registering the said gain over two

sessions while it closed flat in the remaining two to close the week at EUR0.97.

A total of 140,300 shares changed ownership over 23 deals.

From the aviation industry, Malta International Airport plc shares

were also noted on the list of gainers, as the equity gained 0.6 per cent on

Friday to close at the EUR1.74 price level. On Monday, the company announced

its traffic results for the month of May, in which it stated that the airport

registered a growth of 5.8 per cent or 344,008 in its passenger movements,

which is a record for the month under review. Interestingly enough is that all

five major markets registered growth during May 2012 with the highest increase

recorded in the Spanish market segment.

From the banking sector, HSBC Bank Malta plc, managed to reverse

a considerable amount of its losses as it gained 1.6 per cent following three weeks

of depreciation. The equity gained the said appreciation over two sessions,

while it closed unchanged in the other two after trading at an intra-week low

of EUR2.48. Trading volume amounted to 39,167 dealt over 13 trades to close the

week at EUR2.52.

On the contrary, for the fifth week Lombard Bank plc was hit by its recent

bearish mood, as the equity declined by a further 0.4 per cent, thus magnifying

its year-to-date loss to 16.8 per cent. The equity was active in a single

session, in which 3,000 shares changed hands over a single trade to end the

week at a record low of EUR2.25.

Likewise, both FIMBank plc and Middlesea

Insurance plc closed lower, with the former declining by 1.2 per cent over

a mere 900 shares to close at $0.84, while 0.8 per cent was shaved-off from the

latter’s share value over three trades of 2,244 shares to close at EUR0.645.

Meanwhile, the other active financial

was Bank of Valletta plc which

closed at EUR2.06 after trading at an intra-week high of EUR2.09. The equity

had the lion’s share, as total trading value amounted to EUR219,220 traded over

41 trades which consisted of 106,198 shares. On Monday the company announced

that it was notified by the Malta Financial Services Authority that an

administrative penalty of EUR203,150 was imposed on the company following the

last phase of investigations in respect of a number of transactions in

connection with the La Valette Multi-Manager Property Fund. The MFSA will

consider returning an appropriate proportion of the penalty following the

conclusion of further investigations into the matter. The Bank has the right of

appeal within 30 days of the issue of the fine. The statement added that the

Authority indicated that those investors identified from the file review (to be

carried out by an independent professional services firm) as not eligible to

invest in the Fund shall be eligible for compensation from the Bank of an

amount of EUR1 per share less any compensation already received.

From the I.T. sector, RS2 Software plc slipped by a further

1.9 per cent. The equity was active in two sessions, in which it registered the

said loss on Monday, while it closed flat on Wednesday to close the week at EUR0.51.

A total of three trades worth EUR11,500 were dealt across 23,000 shares.

Finally, the other non-mover for the

week was International Hotels

Investments plc which traded flat at EUR0.90 over two sessions of 12,614

shares.

 

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]