MSE Trading Report for week ending June 22, 2012

Large caps halt index rally

Following its recent strike of gains the Malta Stock Exchange (MSE) Index succumbed to a minimal loss of 0.3 per cent to end the week at 3,051.442 points. Despite an auspicious start, the mood darkened in the last two sessions of the week, as the index recorded a depreciation of 0.6 per cent with highly capitalised equities being the main draggers towards the broader market. In fact, the main laggards for the week were Bank of Valletta plc, HSBC Bank Malta plc and Midi plc, while GO plc fetched a new record high on a year-to-date basis. The week witnessed the trading of 12 equities, in which losers’ outperformed gainers, as six dwindled lower, two edged higher, while the remaining four closed unchanged. Total turnover in the week amount to EUR375,205 traded over 281,695 shares which were executed across 96 transactions.

In the local Government stock market, yields were rather balanced, as from the 23 active stocks 12 traded in positive territory, while 11 closed lower. Total turnover in the week amounted to just over EUR12.7m traded over 127 deals with the long-dated 5.2% MGS 2031 heading the list of gainers with a 1.3 per cent appreciation. Meanwhile, on Friday afternoon the Treasury announced that it had received a total of 5,119 applications with a nominal value exceeding EUR191m in respect of the latest Government Stocks issue. The amount requested was of EUR120m with an over-allotment option of EUR60m.

In the Corporate Bonds yields took dissimilar directions, as seven advanced in value, eight lurched lower, while six closed flat. The 4% AX Investments Holdings plc 2013 closed markedly higher with a significant gain of 25.7 per cent.

In the equity market, Bank of Valletta plc shares failed to sustain last week’s gain, as the financial equity slipped by a minimal 0.05 per cent to end the week at EUR2.069. The equity was active throughout the week, in which a total of 35,509 shares changed hands across 24 transactions. Likewise, HSBC Bank Malta plc shaved-off 0.8 per cent from its value, thus re-touching the EUR2.50 price level. The banking equity was active in four sessions, in which it declined in two, appreciated in one and closed flat in the other. Activity was spread over six transactions of 11,739 shares worth EUR29,569.

Meanwhile, the other active financials for the week were Lombard Bank plc and Middlesea Insurance plc. The former closed flat at EUR2.20 after trading at an intra-week high of EUR2.24 over two trades of 2,300 shares, while the latter traded unchanged at EUR0.63 over 1,824 shares which were executed in a single session.

On a positive note, GO plc maintained its upbeat trend with a further appreciation of 2.6 per cent, thus increasing its gains to 68.6 per cent from its lows of EUR0.70. The telecommunications equity was active in the first four sessions of the week as a total of EUR157,986 was traded over 138,216 shares to end the week at EUR1.18.

The other gainer for the week was Malta International Airport plc which maintained its positivity for the third consecutive week with a 0.6 per cent gain. The airport operator was active in four sessions in which 18,900 shares changed ownership over eight transactions.

On a negative note, Maltapost plc shares continued their descent with a further loss of 1.6 per cent. The postal operator was active in the mid-week session as 3,161 shares were traded over two deals. Similarly, Midi plc shares fell under renewed selling pressure with a further decline of 1.5 per cent, thus registering a depreciation of 5.8 per cent over two weeks. The equity closed the week at EUR0.33.

Island Hotels Group Holdings plc was also among the list of losers, as the equity weakened by a scant 0.1 per cent, to notch the price down to EUR0.849. Furthermore, Plaza Centres plc shares tumbled by 13 per cent over a single session to close at EUR0.60.

Finally, the other non-movers for the week were RS2 Software plc and Medserv plc which maintained their previous closing prices of EUR0.50 and EUR3.95 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]