MSE

Trading Report for week ending June 15, 2012

Index

sustains its gains, GO shares up 18 per cent

The Malta Stock Exchange (MSE) Index extended its streak of gains to

four consecutive sessions by recording a further appreciation of 0.5 per cent

to end the session at 3,058.953 points. The index experienced a relatively

positive week by displaying impetus in three sessions, while it registered

losses in the first session of the week and on Friday. From the financial

sector Bank of Valletta plc and FIMBank plc were the sole gainers,

while Lombard Bank plc captured additional

losses to touch new record lows. Meanwhile, GO plc upheld its bullish trend with a remarkable gain of 18.6 per

cent on the week, therefore supporting its year-to-date positivity.

Total trading value for the week more

than doubled reaching just under €1.2m traded over 143 transactions which

consisted of 1.25m shares. The week was characterised by 12 equities being

active, in which gainers and losers tallied to five, while non-movers amounted

to two.

In the local Government stock market, investors’ pressured yields higher,

as they tended to sell their assets in light of the new stock issuance. In

fact, from the 22 active issues all drifted lower with medium to long dated

stocks being the most vulnerable. On Thursday afternoon, the Treasury announced

the prices for the new issues,  which are,

 the 3.75% MGS 2017 and the 5.1% MGS 2029

priced at €102 and €101 respectively resulting in a Yield to Maturity(YTM) of

3.324% and 5.012%, while the 4.3% MGS 2022 fungability issue was priced at €100.25

with a YTM 0f 4.268%. Investors are able

to place their application as of Monday but are advised to read the prospectus

before considering investing in these issues.

In the Corporate Bonds yields were balanced as from the 30 active issues,

nine gained ground, 12 closed flat, while the remaining nine declined in value.

The 4% AX Investments 2013 issue

headed the list of losers, as it lurched by a significant 19.2 per cent.

In the equity market, following last

week’s flat trading, Bank of Valletta

plc shares returned to positive ground by registering a 0.5 per cent gain

to close the week at €2.07. The equity had the lion’s share as total turnover

amounted to €386,408 traded over 44 transactions. Meanwhile on Friday following

the close of trading, the company announced that the board of directors were

notified by Mr. Roderick Chalmers that he decided to hand in his resignation as

the Bank’s Chairman for personal motives.

Likewise, FIMBank plc managed to pare the losses it incurred in the previous

week with a gain of 1.2 per cent over a considerable amount of 151,714 shares

to return at the $0.85 price level. Conversely, both Lombard Bank plc and Middlesea

Insurance plc dipped on the week, with the former recording an additional

loss of 2.2 per cent, thus touching new lows to close at €2.20, while 2.3 per

cent was shaved-off from the latter’s share value to end the week at €0.63.

Meanwhile, the other active financial

was HSBC Bank Malta plc which closed

the week unchanged at €2.52, after trading at an intra-week low of €2.48. The

equity was active in three sessions in which 30,768 shares were dealt over 15

deals.

From the telecommunications sector, GO plc shares continued their ascent

with a further staggering gain of 18.56 per cent. The equity was active

throughout the week as it displayed solid gains in all sessions to end the week

at €1.15, and thus recording a gain of 64.3 per cent from its lows of €0.70. A

total of 172,440 shares were traded over 37 trades.

Similarly, following last week’s

appreciation Malta International Airport

plc share price added a further 1.7 per cent to its share value to close

the week at €1.77. The equity was active in four sessions were a total of

47,500 shares changed hands across 18 transactions. From the beverage sector, Simonds Farsons Cisk plc was also among

the list of gainers with a scant gain of 0.3 per cent to move towards the €2.00

price level, thus appreciating by 11.1 per cent year-to-date.

On a negative note, Plaza Centres plc headed the list of

losers as its shares plunged by 23.3 per cent on Monday, in which a mere 500

shares were dealt over a single trade to close at €0.69. Furthermore, both Midi plc and Crimsonwing plc were also among the draggers for the week. The

former slipped by 4.3 per cent in the last minutes of trading on Friday over a

significant volume of 500,000 shares to close at €0.335, while the I.T operator

declined by 6.8 per cent or €0.2 over 10,000 shares to close at €0.28.

Meanwhile, the other non-mover for the

week was RS2 Software plc which

closed unchanged at €0.50 over 11 trades’ worth of €61,027. On Tuesday the

company announced that in its Annual General Meeting, held on the same day,

shareholders considered and approved that the company’s share capital will be

increased from the existing 40m to 50m ordinary shares at €0.20 each.    

  

 

 

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]