Index up as HSBC and GO register solid gains

July 20, 2012

MSE Trading Report for week ending July 20, 2012

The Malta Stock Exchange (MSE) Index extended its positive trend to three consecutive weeks as it recorded a gain of 1.6 per cent, to close the week at 3,090.258 points, as Go plc and HSBC Bank Malta plc registered solid gains. Despite this upward move, losers outperformed gainers, as six closed in negative territory, two registered solid gains, while four other equities closed the week unchanged. Turnover in the equity market amounted to EUR575,296 across 12 equities, compared to last week’s EUR666,703. Trading volume reached 364,500 shares traded over a total of 128 deals.

In the local Government Stock market, yields continued to decline, as 18 out of the 23 active issues closed in positive territory, while four declined and another issue closed unchanged. Turnover for the week increased to EUR23.17m with the 3.6% MGS 2013 (IV) once again being the most liquid stock, as value traded reached EUR11.2m. Meanwhile, in the Corporate Bonds market 20 issues were traded, with half remaining unchanged, while gainers and losers tallied at five. The 6.25% International Hotel Investments plc EUR 2015-2019 was the worst performer for the week, registering a 1.94 per cent decline in value.

In the equity market, GO plc headed the list of gainers, as it recorded a staggering rise of eight per cent, following sharp falls in previous weeks. The equity commenced the week on a high, as it appreciated by 20%, which it did not manage to retain as the share price declined to back to the EUR1.08 level. Trading volume in this equity amounted to 187,010 shares across 23 deals.

In the banking sector, Bank of Valletta plc (BOV) was the worst performer as it sustained a loss of 2.68 per cent, or EUR0.055, to close the week at EUR2.00. Such a loss was mainly registered on Friday, as the share price declined by 2.4 per cent. BOV was the most liquid traded equity, as 110,757 shares were exchanged across 59 trades, for a total value of approximately EUR224,000.

Likewise, Lombard Bank plc shares settled in the red by 0.91 per cent, as 34,789 shares changed hands over 22 trades, as the share price fell to EUR2.18. The Board of Directors will be meeting on Thursday August 23, 2012, to consider and approve the Group’s and the Bank’s Financial Statements for the half year ended June 30, 2012.

In contrast, HSBC Bank Malta plc continued its positive momentum, now in its fourth consecutive week, as this week the equity closed higher by 6.74 per cent, or EUR0.18. The share price reached the EUR2.88 but closed the week at EUR2.85 on 22 deals as 34,789 shares traded in the week. On the other hand, FIMBank plc shares traded flat at USD 0.86 on a single deal of 595 shares.

Both RS2 Software plc and GlobalCapital plc registered a drop in their share price. The former fell by four per cent on four trades of 11,733 shares, to close the week at EUR0.48, while the latter plunged by 3.61 per cent on Monday, closing at EUR0.80, as a mere 350 shares changed hands over two deals.

International Hotels Investments plc, Malta International Airport plc (MIA) and MaltaPost plc closed the week unchanged at EUR0.85, EUR1.75 and EUR0.89 respectively. The most liquid was MIA, as 7,030 shares were traded over five deals. During the week, MIA issued its interim financial statements for the period ending June 30, 2012. Profit before tax rose by 12 per cent, from EUR6.28m to EUR7.04m. Revenue increased slightly to EUR22.71m, while earnings per share rose to EUR0.0331. Furthermore, the Directors approved a net interim dividend of EUR0.03 per share (gross EUR0.0461538) equivalent to EUR4.059m for payment on all shares settled as at close of business on Monday July 30, 2012, and payable by not later than September 10, 2012.

MIDI plc shares recorded another negative weekly loss, this week by just over 3.2 per cent, closing the week at EUR0.30, on a single deal of 1,000 shares. Similarly, Plaza Centres plc closed the week at EUR0.578, EUR0.001 lower, on a single deal of 2,600 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]