GO, IHI and HSBC halt MSEâ
MSE
Trading Report for week ending March 16, 2012
GO,
IHI and HSBC halt MSE’s positive trend
The Malta Stock Exchange (MSE) Index
failed to sustain its recent upward trend by recording a significant loss of
1.5 per cent to end the week at 2,960.079 points. Conviction among investors
lacked throughout the week, as the index only managed to snap a gain on
Wednesday, while it traded in negative zone in all the remaining sessions. On
Friday, the index experienced the worst session as it surrendered to the heavy
losses by mainly GO plc and HSBC Bank Malta plc which waived away
its recent bullish trend. On the contrary, FIMBank
plc was the best performer of the week with an overwhelming gain of 13 per
cent.
Activity in the week was characterised
by the trading of 10 equities in which losers maintained their leadership over
gainers, as six declined in value, three registered gains and one closed the
week unchanged. Meanwhile, total turnover in the week increased further to a
significant value of just over EUR1.3m which was traded just above 1.5m shares.
In the local Government market
turnover decreased to just over EUR10.2m, traded over 20 issues. The appetite
for local sovereign debt was lower this week, as 14 issues traded lower, five
recorded minimal gains and one closed flat. The newly issued 4.3% MGS 2022 headed the list of losers
by recording a loss of 1.2 per cent. Meanwhile in the Corporate Bonds Market activity was dealt over 23 issues in which
nine gained ground, six edged lower and three closed unchanged. The best
performer for the week was the 4.8% Bank
of Valletta 2018 which gains 1.2 per cent.
In the equity market, financials experienced
a relatively negative week as from the five active shares only two captured
gains. In fact, HSBC Bank Malta plc halted
its four weeks of winning strikes as it headed southwards by recording a loss
of 3.2 per cent or EUR0.085 to close the week at EUR2.55 despite having traded
at a high of EUR2.63. The equity was active in four sessions in which it
recorded losses in three while it closed unchanged on Thursday. Total trading
volume amounted to considerable volumes of 142,893 shares which were dealt over
17 transactions.
Likewise, Lombard Bank plc slipped by a minimal 0.4 per cent on Wednesday
over 400 shares to close at EUR2.52. On Thursday, the company released its
financial statements for the year ending December 31, 2011, in which it
reported that the Group’s profit after tax amounted to EUR7.23m, down by 20 per
cent when compared to 2010. In addition, the company announced that the Board of Directors is
proposing a final gross dividend of EUR0.115 per share. Similarly, Middlesea Insurance plc extended its
losses by recording a loss of 1.4 per cent over low volumes of 883 shares to
end the week at EUR0.69.
On the contrary, FIMBank plc shares surged by a sharp 13.3 per cent or $0.10
following positive results, in addition to possible takeover talks. On
Wednesday, the equity soared by 20 per cent, while it than reversed 5.6 per
cent from the registered gains in the following session to end the week at
$0.85. On Tuesday, the company announced its results for the year ending
December 31, 2011, in which it reported that the Group’s profit after tax
increased to $9.13m, compared to the $6.74m in 2010. However, the Bank’s profit
after tax was that of $1.84m when compared to the $2.63m registered in 2010,
thus a decrease of 30 per cent. Meanwhile, the Board of Directors are recommended
a scrip dividend of a $cents 2.003884, in addition to a 1 for 25 bonus issue of
ordinary shares.
Bank
of Valletta plc shares diverged to positive territory
by recording a gain of 0.5 per cent. The equity was active in four sessions as
it appreciated on Tuesday and Thursday while it closed flat in the other
sessions to end the week at EUR2.16. A total of 26,525 shares changed ownership
across 18 deals. On Tuesday, the Bank announced that it will be issuing a
maximum amount of EUR40m in 4.25 per cent notes maturing in 2019.
From the telecommunications sector, GO plc share price yesterday touched an
all time record low of EUR0.76 by recording a sharp loss of 9.3 per cent. The
incurred loss was reflecting the negative financial results for 2011 which were
published prior to the market open. The company published its financial
statements for the year ending December 31, 2011, in which it stated that the
Group reported a loss before taxation of EUR45.2m when compared to the EUR9.1m
loss registered in 2010. In their performance review the company stated that
the negative results were heavily impacted by the company’s indirect investment
in Forgendo Limited. In fact, the Group has accounted for losses attributable
to investment in jointly-controlled entities of EUR62.3million. Furthermore, the
board of directors stated that in such circumstances they do not recommend the
payment of a dividend.
In addition, both International Hotels Investments plc and Malta International Airport plc marked themselves on the list of
losers for the week. The former posted a loss of 3.9 per cent over two sessions
to close the week at EUR0.75, while the latter depreciated by a scant 0.7 per
cent on Friday to reach the EUR1.679 price level.
Meanwhile, Plaza Centres plc managed two snap back all the losses recorded in
the previous week, as 2.9 per cent was added to its share value, thus regaining
the EUR1.80 levels.
Finally, the non-mover for the week was
Maltapost plc which maintained its previous closing price at EUR0.91.
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]