MSE Trading Report

for week ending August 10, 2012

Index lower as Banking shares halt their recent upward

trend  

The

Malta Stock Exchange (MSE) Index mirror

imaged last week’s performance by recording a further decline of 1.5 per cent

to end the week at 3,041.216 points. In the week the mood swayed from negative

to positive as the index traded higher in two sessions, while it drifted lower

in the other three. Banks emerged as the main draggers for the week, with both Bank of Valletta plc and HSBC Bank Malta plc edging lower, while

GO plc extended its declines.

Conversely, the recorded surge among International

Hotels Investments plc shares was a key determinant in halting further

potential losses.

The

week was characterised by eight equities being active, in which losers

outperformed gainers as five lurched lower, two closed higher, while the

remaining stock traded flat. As opposed to the previous week turnover was

considerably on a low value of €261,473 traded over a total of 66 transactions

which consisted of 139,641 shares.

In

the Government Stock market, investors

upheld their conviction in local sovereign debt, as from the 23 active stocks

18 appreciated in value, while five closed lower. Turnover in the week

decreased marginally to €3.64m, with the long-dated 5.25% MGS 2030 emerging as the most liquid issue.  Meanwhile, in the Corporate Bonds market yields were mixed, as six advanced in value,

three headed southwards, while nine closed unchanged. The 7.15% MIH 2015 headed the list of gainers with a 1.1 per cent

appreciation.

In the equity

market, sellers got the better off over Banking equities which emerged as the

draggers towards the broader market. In fact, Bank of Valletta plc shares halted their recent upward trend by

posting a loss of 1.4 per cent, thus re-touching the €2.08 price level. The

equity was active throughout the whole week, were it closed unchanged in three

sessions, appreciated in one, while it slipped by 3.3 per cent on Friday. The

bank had the lion’s share as total trading volume amounted to 57,716 shares which

were traded over 33 deals.

In line with its

peer, HSBC Bank Malta plc plummeted

by 6.3 per cent over three sessions, thus cutting back most of the gains

registered in the previous weeks. However, one must point out that part of declines

which were registered throughout the week were a result of the equity turning

ex-dividend on Monday. This implies that all shareholders appearing on the

bank’s registrar as at August 8, 2012, were entitled to a 6.5 cents net interim

dividend which will be paid out on August 28, 2012. Meanwhile, a total of

31,325 shares exchanged hands over 14 trades to end the week at €2.699.

Likewise, for the

third consecutive week Middlesea

Insurance plc slid lower by a further decrease of 2.4 per cent. The

financial equity was active on Tuesday in which a mere of 530 shares were

traded across one single transaction to close the week at €0.605.

From the

telecommunications industry GO plc

was once again pushed into selling pressure with a further 1.9 per cent

depreciation. The equity was active in three sessions in which it drifted lower

by 3.9 per cent in the first two sessions, while it than managed to snap back more

than half of the losses incurred with a two per cent appreciation on Thursday.

A total of 42,624 shares changed ownership across 10 deals to close the week at

€1.02.

Similarly, from

the postal industry Maltapost plc

shares plunged by 7.9 per cent over a single session of 546 shares to end the

week at €0.82, thus pushing the equity towards a year-to-date loss of 18 per

cent.

On the contrary, International Hotels Investments plc

was the prime gainer with a markable gain of 6.3 per cent or €0.05. The

hotelier’s equity was active on Wednesday, in which a total of 1,000 shares

were traded over a single transaction to close the week at €0.85.

The other gainer

for the week was Malta International

Airport plc which closed higher by a scant 0.06 per cent to close at the €1.74

price level. Meanwhile, on Monday the company announced its traffic results for

the month of July. It stated that in the said month passenger movement increased

by 7.1 per cent, thus reaching an all time record for any month ever of 445.232

passengers.

Finally, the other

active equity was Plaza Centres plc

which closed the week unchanged at €0.55 over a single session in which 1,500

shares were dealt over a single deal.

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]