BOV shares rally prior to results announcement
MSE
Trading Report for week ending October 26, 2012
BOV
shares rally prior to results announcement
The Malta Stock Exchange (MSE) Index managed
to re-position itself in positive territory with a 0.8 per cent appreciation,
thus recouping the 0.2 per cent decline incurred in the previous week.
Throughout the week the index displayed impetus as it traded higher in four sessions,
while it registered a 0.3 per cent loss on Monday. Banking equities were once
again in the limelight with Bank of
Valletta plc shares extending their streak of gains, while HSBC Bank Malta plc managed to regain a
minimal percentage from last week’s depreciation. Conversely, Lombard Bank plc lengthened its
negativity for the second week in a row.
The week witnessed
the trading of 10 equities in which gainers prevailed over losers, as six moved
higher, one edged lower, while three closed unchanged. As opposed to the
previous week turnover declined to EUR603,176 traded over 116 transactions
which were executed across 439,679 shares.
Meanwhile, in the Government Stock Market, investors
upheld last week’s position, that of redeeming unrealised profits following the
newly announced stock issuance. This despite the fact that from the 23 active
stocks 16 declined, five posted scant gains, while two closed unchanged. In the
week, trading value was on a high note as it reached just over EUR21.1m, with
57 per cent being traded within the long-dated 5.25% MGS 2030. Meanwhile, on Thursday afternoon the Treasury
announced the prices for the new Malta Government Stocks issuance. The 3.75%
MGS 2017 was priced at EUR105, while the 4.3% MGS 2022 at EUR102.50, both are
fungability issues. Furthermore, the newly issued 4.8% MGS 2028 was priced at EUR100.75.
In the Corporate Bonds market, yields opted
for opposing directions as from the 24 active issues, eight traded in positive
territory, seven edged lower, while nine closed flat. The 6.2% Tumas Investments plc 2017-2020 headed the list of losers with
a 3.3 per cent depreciation.
In the equity market, Bank of Valletta plc emerged as the
prime gainer for the week. The banking equity added a further 2.4 per cent to
its value to close the week at EUR2.325. One must point out that following this
week’s appreciation the equity captured six per cent over three consecutive
weeks. Once again the bank had the lion’s share as total volume traded amounted
to 100,798 shares which were dealt across 44 deals. Meanwhile, yesterday after
close of trading the company announced its financial results for the year
ending September 30, 2012. Profit before tax amounted to EUR110.7m when
compared to the EUR64.4m recorded in 2011, thus a significant 72 per cent
increase. The board of directors also resolved to recommend a final net
dividend of EUR0.0845 per share and a bonus share issue of one share for every
nine shares held to every shareholder appearing on the Bank’s registered as at
January 17, 2013.
In line with its peer, HSBC Bank Malta plc managed to turn
positive by gaining a minimal 0.4 per cent to close the week at EUR2.76. The
equity was active in the first four sessions of the week as it posted a 1.8 per
cent loss on Monday and Tuesday, while it gathered a 2.2 per cent in the
subsequent sessions. Activity was much lower than that traded in BOV as only 14
deals were registered on 22,327 shares.
Conversely, the other active financial, Lombard Bank plc, dwindled by a further
0.5 per cent following last week’s loss. The equity was active over 59,000
shares which were executed over four trades to close the week at EUR1.86. Meanwhile,
on Thursday the company announced that it intends to increase its shareholding
in Maltapost plc, through its subsidiary company Redbox Limited, from the
present holding of 67.7 per cent to not more than 74.5 per cent.
On a positive note, GO plc shares maintained their
ascending momentum by posting a further gain of just over one per cent, thus
totalling to a remarkable 16.9 per cent appreciation over five consecutive
sessions. The telecommunications operator was active over a total trading value
of EUR54,860 which was dealt over 25 transactions to close at the EUR1.00 price
level.
Likewise, both Plaza Centres plc and Maltapost
plc closed the week on a higher note. The former rose by three per cent in
the mid-week session to close the week at EUR0.525, while the latter advanced
by 1.6 per cent on Thursday over 3,200 shares to end the week at EUR0.72. The
postal operator’s appreciation was triggered by the announcement that Lombard
Bank plc will increase its shareholding in the company through its subsidiary,
as mention earlier above.
From the I.T. sector, Crimsonwing plc surged by 23.1 per cent
over two sessions, thus placing second on a year to date basis with a notable
28 per cent gain. A total of 66,378 shares changed ownership to close the week
at EUR0.32.
Meanwhile, Malta International Airport plc closed the week flat at EUR1.75
after trading at an intra-week low of EUR1.745. The airport operator was active
over 45,672 shares which were dealt across nine trades.
The other non-movers for the week were
Midi plc and Malita Investments plc which closed unchanged at EUR0.25 and EUR0.50
respectively on minimal trading.
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]