MSE Trading Report for week ending July 27, 2012

Index turns positive by 1.1 per cent on a year-to-date basis   

The Malta Stock Exchange (MSE) Index clicked another notch higher for the fourth week in a row by registering a solid gain of 1.2 per cent to close the week at 3,128.687 points, and thus year-to-date the index is now up 1.1 per cent. The index oscillated from positive to negative with financial equities being the primary source of strength towards the broader market. The main gainer for the week was Bank of Valletta plc which recorded a significant gain, while HSBC Bank Malta plc upheld its recent upbeat tone for the fifth consecutive week. Conversely, both Middlesea Insurance plc and FIMBank plc closed the week in negative territory. Despite the index positive performance which was triggered by large caps, losers’ outperformed gainers as five declined in value, while three closed the week on a higher note. Turnover in the week decreased further to EUR508,604 which was dealt on 285,169 shares traded across a total of 104 transactions.

In the Government Stock market, local investors were concerned about the stream of adverse global economic news which encouraged them to switch towards safer assets. In fact in line with German bunds, yields of local sovereign debt declined, as from the 22 active stocks 14 appreciated in value, six edged lower, while two closed unchanged. Turnover in the week decreased to EUR6.8m when compared to the EUR23.17m recorded in the previous week, with 61.8 per cent being traded within the short-dated 5.7% MGS 2012 issue.

Meanwhile, in the Corporate Bonds market turnover reached EUR976,844 traded over 22 issues, in which yields took diverging directions as eight closed higher, four slid lower, while 10 closed unchanged. The 7% FIMBank Eur plc 2012-2019 headed the list of gainers with an appreciation of just below two per cent.

In the equity market, banking equities were the major driving force behind the index sustained gain. In fact, Bank of Valletta plc shares managed to snap back last week’s 2.7 per cent loss, as its shares spiked up by five per cent or EUR0.10 to close the week at EUR2.10. The equity was the second most active asset, as total volume traded amounted to 63,777 traded over all five sessions. Monday’s session emerged as the most promising as the banking equity surged by 4.5 per cent. Meanwhile, on Tuesday the company announced that Mr. Frederick Mifsud Bonnici has been appointed non-executive Director and Chairman of the Bank.

Likewise, HSBC Bank Malta plc continued its recent exponential climb by registering a further 1.6 per cent gain, thus heading the list of gainers with a 12.3 per cent appreciation on a year-to-date basis. The equity had the lion’s share as total trading value amounted to EUR260,768 traded over three sessions to close the week at EUR2.895. Meanwhile, on Friday, after trading the Bank released its interim financial statements for 2012, were profit before tax reached EUR53m, thus an increase of six per cent when compared to the same period in 2011.

Conversely, from the same sector, Middlesea Insurance plc shares declined by just below three per cent, a day prior to the release of its financial statements for the first six months of 2012. In fact, on Tuesday the company announced a profit before tax of EUR7.17m for the first six months of 2012. However, one must point out that this year’s Group results consolidate MSV’s results on a line by line basis, whereas the 2011 comparative results only consolidates the Group’s share of the associate’s profit after tax. In the week the Insurance equity was active over two sessions, in which 3,000 shares changed hands over two trades to close the week at EUR0.621.          

The other active financial was FIMBank plc which depreciated by 1.2 per cent to close the week at $0.85, thus retreating from its $0.95 highs. A total of 7,209 shares were dealt over six transactions. Meanwhile, on Friday the company announced that the board of Directors will be meeting on August 28, 2012, to consider and approve the financial statements for the first six months, ending June 30, 2012, and consider the payment of an interim dividend if any.

From the telecommunications sector, GO plc shaved-off 2.8 per cent from last week’s eight per cent gain to close the week at EUR1.05. The equity was active over four sessions in which 20,376 shares changed ownership over 12 deals. Likewise, Midi plc shares extended its recent descent by recording a loss of 3.3 per cent, thus emerging as the worst performer with a depreciation of 23.7 per cent year-to-date.

The other negative performer for the week was 6pm Holdings plc which plunged by 12.5 per cent over a single session of 1,000 shares to close at £0.28 price level.

Finally, from the aviation industry Malta International Airport plc advanced by 1.1 per cent following two weeks of unchanged trading. The equity was active in three sessions were it gathered a gain of just below two per cent in the first two session, while it slipped by 0.8 per cent on Thursday. Total trading volume amounted to 39,550 shares which were executed across seven trades to close the week at EUR1.77.

 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]