MSE

Trading Report for week ending August 3, 2012

Large

caps halt index positive run   

Following four

weeks of gains, the Malta Stock Exchange

(MSE) Index halted its positive run by recording a significant loss of 1.3

per cent to close the week at 3,086.704 points, thus re-positioning itself in

negative territory on a year-to-date basis. The index endured a negative week

as selling pressure emerged in the first four sessions with bigger losses being

recorded on Tuesday and Thursday.  The

main dragger of the week was International

Hotels Investments plc which drifted lower by a significant percentage,

followed by FIMBank plc and Malta International Airport plc. On the

contrary, Bank of Valletta plc

prolonged last week’s gains, while two of the three active I.T. equities closed

markedly higher.

The week witnessed

the trading of 12 equities, in which losers outperformed gainers, as eight slid

lower, three pointed higher, while the other traded flat. Turnover in the week

turned higher to EUR721,121 traded over 106 transactions which consisted of

628,536 shares.

In the Government Stock market, as headwinds

from abroad persisted, and in line with German Bunds most of the local

sovereign yields closed lower as investors shifted their assets towards safer

heavens. In fact, from the 19 active stocks 15 appreciated in value, while four

posted minimal losses. Turnover in the week amounted to EUR3.7m, with 35 per

cent of the amount being traded across the long-dated 5.2% MGS 2031.

Meanwhile, in the Corporate Bonds market yields were

mixed, as from the 23 active stocks eight edged higher, four fetched new

losses, while 11 closed unchanged. The 6% AX investments 2014-2016 headed the

list of gainers with a 1.9 per cent appreciation.

In the equity market, the highly

capitalised International Hotels

Investments plc shares stumbled by a heavy 5.9 per cent or EUR0.05 to close

the week at EUR0.80 on low volume. The hoteliers equity was active in three

session in which a total of 20,528 shares changed hands across eight transactions,

thus pushing the equity towards a loss of 5.2 per cent, year-to-date.

Likewise, from the financial sector FIMBank plc upheld its negativity for

the second week in a row by recording a further decline of 2.4 per cent, thus a

loss of 3.5 per cent over two weeks. The equity commenced trading on a flat

note, however it than edged lower in the mid-week session by recording the said

loss to close the week at $0.83. A total of 78,817 shares changed hands across

three transactions.

Similarly, both HSBC Bank Malta plc and Middlesea

Insurance plc closed the week lower. The former brought to a standstill its

recent upbeat trend by shaving 0.5 per cent from its value, this

notwithstanding the positive results announced the previous Friday after close

of trading. The equity was active in the first three sessions as it oscillated

from positive to negative over a total of 48,445 shares to close the week at EUR2.88.

Meanwhile, the latter depreciated by 0.2 per cent in a single session in which

6,750 shares changed hands over three deals to close at EUR0.62.

Conversely, Bank of Valletta plc shares sustained last week’s solid performance

by registering a further 0.5 per cent gain. The banking equity was active

throughout the week as it slipped in the first three sessions by posting a loss

of 2.4 per cent which it than managed to recuperate by striking an appreciation

of 2.8 per cent in the last two sessions of the week to close at EUR2.11. A

total of 52,787 shares were traded over 41 transactions.

From the aviation sector, Malta International Airport plc steered

off 1.8 per cent from its value over three sessions to close the week at the EUR1.739

price level. Meanwhile, on Friday the company announced that it will abide with

last year’s initiative that of giving 100 per cent refund to all scheduled

airlines, on landing fees for the coming winter season, with the main aim to

further stimulates traffic during the winter months.

From the telecommunications sector, GO plc shaved off a further 0.9 per

cent from its value following last week’s 2.8 per cent depreciation. The equity

was active in three sessions, as it closed flat in one, posted a 2.9 per cent

loss in the other, while it snapped back a 1.9 per cent gain on Friday to close

the week at EUR1.04.

Similarly, Plaza Centres plc plunged by 4.8 per cent on Monday to close the

week at EUR0.55. The equity was active over two sessions, in which it recorded

the said loss in one, while it closed unchanged on Thursday. A total of 9,000

shares were traded over two transactions. Meanwhile, on Tuesday the company

announced its financial statements for the first six months of 2012, in which

it reported that profit after tax increased by 7.2 per cent when compared to

the same period in 2011.      

From the I.T. sector, both 6PM holdings plc and RS2 Software plc enjoyed a strong week.

The former showed impetus with a staggering 14.3 per cent gain over a single

session to close at £0.32, while the latter was up by a healthy 4.2 per cent to

re-touch the EUR0.50 price level. Traded volume in both equities was relatively

high with RS2 reaching nearly 215,000 shares. On the other hand, Crimsonwing plc  plummeted by 19.2 per cent in the last trading

minutes on Friday over 3,800 shares to close the week at EUR0.21.

Meanwhile, the non-mover for the week

was Simonds Farsons Cisk plc which

closed flat at EUR2.00 over 3,267 shares which were executed across two

transactions.

   

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]