MSE

Trading Report for week ending July 6, 2012

Index

turns positive as HSBC shares advance

Following two weeks

of negativity the Malta Stock Exchange

(MSE) Index managed to halt its off-putting position by snapping back a 0.5

per cent gain to end the week at 3,036.163 points. Despite spiralling lower in

three sessions, the index managed to diverge towards a positive path, as the

significant gain by HSBC Bank Malta plc

was a key determinant towards the broader market. Conversely following their

recent bullish trend, both Simonds

Farsons Cisk plc and GO plc

closed the week with significant losses.  

Trading activity in

the week was dealt over eight equities, in which losers prevailed over gainers,

as six edged lower, one gained ground, while the other traded unchanged. Total

turnover for the week increased to EUR306,716 traded over 172,345 shares which

were executed across 95 transactions.

In the local Government Stock market, investors

garnered support, as from the 22 active issues 17 traded in positive territory,

four declined in value, while three closed unchanged. Turnover in the week

decreased to just over EUR17m, of which 48 per cent were traded within the

short-dated 6.35% MGS 2013 issue.

Meanwhile despite not being active, the three newly listed sovereign issues

were given the green light by the Treasury to commence trading on Friday

following their admission to the official list of the MSE on the previous day.

In the Corporate Bonds market total activity

was spread on nominal amounts of just over 1.1m which were traded over 23

issues; in which six gained ground, eight edged lower, while nine closed

unchanged. The 5.6% Global Capital

2014/2016 headed the list of gainers by registering an appreciation of 8.5

per cent.

In the equity market, Bank of Valletta plc shares fell under

renewed selling pressure for the third week in a row by recording a further

loss of 0.5 per cent. The banking equity was active throughout the week as a

total of 56,233 shares changed hands across 38 transactions to end the week at EUR2.05.

On the contrary, HSBC Bank Malta plc was the only gainer for the week with a

markable gain of just below four per cent or EUR0.10 to close at the EUR2.61

price level, as investors await the six months results to be approved on July

27, 2012. The equity was active in all five sessions with the said gains mostly

recorded in Friday’s session, with a 3.2 per cent appreciation. A total of

43,323 shares were traded over 25 transactions.

From the beverage sector, Simonds Farsons Cisk plc shares brought

to a standstill their recent upward trend by registering a considerable loss of

seven per cent. The equity was active in two sessions as it closed unchanged on

Monday, while it surrendered to selling pressure in the last session to close

the week at EUR2.00. A total of four trades were dealt across 6,520 shares.

Likewise, following its record highs

for the year GO plc shares failed to

advance further by shaving a significant 5.5 per cent from its share value to

re-touch the EUR1.11 levels. The telecommunications equity was active in two

sessions, as it recorded losses of 0.4 per cent and 5.1 per cent over a total

of 32,550 shares. 

Similarly, both International Hotels Investments plc and Maltapost plc were among the list of losers for the week. The former

closed lower by 0.12 per cent to close at EUR0.849 after trading at a weekly

high of EUR0.85, while the latter paved way to a further loss of 1.7 per cent

to close at EUR0.89, thus increasing the year-to-date loss to 11 per cent.

From the aviation industry, Malta International Airport plc drifted

lower by 1.7 per cent over two sessions to close at EUR1.75. Total volume was

that of 6,050 shares over four transactions. Meanwhile, on Wednesday the

company announced its interim traffic results in which it stated that passenger

movement for the period between January and June 2012, increased marginally by

1.6 per cent when compared to the same period last year. Figures showed that

the German market registered the highest growth with an increase of 11.5 per

cent, followed by the French and the UK market which recorded gains of 2.1 per

cent and 1.4 per cent respectively. Additionally, passenger movement for June

2012 grew by 8.5 per cent which is a record for the month.

The other active equity for the week was

RS2 Software plc which closed flat

at EUR0.50 over two deals which consisted of 5,333 shares.

During the week, at a press conference

the Chairman of Malita Investments Limited, Mr. Kenneth Farrugia, announced

that the company will offer 20m ordinary B shares at a nominal value of EUR0.50

with a possible further allotment of 10m additional shares in case of

over-subscription. Malita Investments p.l.c.

is a fully owned Government entity set up to acquire, develop, manage and

operate a portfolio of immovable assets which includes a selection of

properties that are of strategic national importance. Malita Investments p.l.c.

has been capitalised by the Government of Malta through a EUR25 million cash

injection, as well as through the transfer of the directum dominium of Malta International Airport and the Valletta

Cruise Liner Terminal. The first two urban regeneration investments undertaken

by Malita Investments p.l.c. were the acquisition of the Parliament Building

and the Open-Air Theatre from the Government of Malta. Subscriptions for shares

are to open on Monday, July 23, 2012 and will close on Friday, July 27, 2012.

Investors should seek professional advice and a copy of the prospectus before

considering investing in this issue.

 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]