MSE

Trading Report for week ending August 17, 2012

Index

extends its losses as HSBC shares lose further ground

For the third week

in a row the Malta Stock Exchange (MSE)

Index upheld its recent negative position by recording a further decline of

0.4 per cent, thus registering a 2.2 per cent loss on a year-to-date basis.

This week the exchange traded four times due to Wednesday’s public holiday, and

the index experienced a relatively negative week as it traded lower in three

sessions, while it managed to close higher on Tuesday. Once again HSBC Bank Malta plc emerged as the main

dragger for the week followed by International

Hotels Investments plc and Lombard

Bank plc. Conversely, Bank of

Valletta plc re-positioned itself towards positive paths, while Simonds Farsons Cisk plc sustained its

bullish trend.

The week witnessed

the trading of nine equities, in which losers outperformed gainers as three

equities closed higher, among which the newly issued Malita Investments plc

shares, four edged lower, while the other two closed unchanged. Turnover in the

week decreased to EUR119,294 traded over 69,875 shares which were executed

across 42 transactions

In the Government Stock market, investors tended

to steer away from safer havens, as foreign markets eased fear from the global

debt crisis on positive growth data from Germany and France. In fact from the

21 active stocks, losers and gainers tallied to 10 while non-movers totalled

one. The long-dated 5.25% MGS 2030

headed the list of losers with a 0.7 per cent decline. Meanwhile, in the Corporate Bonds market yields took

diverging positions, as 10 gained ground, two posted a loss, while seven closed

unchanged. The prime gainer for the week was the 4.8% Bank of Valletta 2020 which appreciated by 2.4 per cent.

In the equity market, HSBC Bank Malta plc extended its streak

of losses by registering a further decline of 1.9 per cent to close the week at

EUR2.649. The equity was active in three sessions, commencing the week on a

sour note by incurring a significant loss of 3.7 per cent which it than managed

to partially offset by registering a 1.9 per cent gain in the following

session. A total of 23,200 shares changed ownership over 13 transactions.

Likewise, following three weeks of

inactivity Lombard Bank plc returned

to trading with a 1.4 per cent loss. The banking equity was active on Tuesday where

it registered the said loss over 950 shares to close the week at EUR2.15.On the

contrary, Bank of Valletta plc

shares stood up to their recent pull-back with a gain of just below one per

cent to close the week at EUR2.10 price level. A total of 15,925 shares were

traded over three sessions.

From the hoteliers sector, International Hotels Investments plc

shaved-off a minimal 0.2 per cent from its share value following last week’s 6.3

per cent appreciation. The equity was active over two sessions in which it

registered a loss of 0.1 equally in both sessions, thus closing at EUR0.848.

Likewise, Maltapost plc extended it

negative saga, as its share value plunged by a further 6.1 per cent to close at

EUR0.77, hence posting a year-to-date loss of 23 per cent. Yesterday’s drop in

the price of the equity can be attributed to the Directors’ Interim Statement

which anticipated that the trend in the decline in profitability reported for the

six months ended March 31, 2012 will be reflected in the second half of the

financial year.

Meanwhile, the newly issued Malita Investments plc shares traded

for the first time since their inclusion on the official trading list. In fact,

the equity commenced its trading journey on a positive note by recording a

considerable gain of four per cent over a single trade of 5,000 shares to close

at EUR0.52. Similarly, from the beverage sector, Simonds Farsons Cisk plc secured its upward trend by posting a gain

of 1.5 per cent. A total of 1,200 shares were traded over a single session to

close at EUR2.03.

Meanwhile, the non-movers for the day

were GO plc and Plaza Centres plc, with the former closing at EUR1.02 after trading

at an intra-week low of EUR1.00, while the latter closed unchanged at EUR0.55

over 9,900 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]