MSE

Trading Report for week ending August 28, 2012

Investors

bullish on BOV and HSBC shares

Following last

week’s appreciation the Malta Stock

Exchange (MSE) Index upheld its positivity by registering a further gain of

1.4 per cent to close the week at 3,090.469 points. Despite trading lower in

two sessions, the index managed to offset the losses incurred by gaining 2.3

per cent over the remaining three sessions. In the week highly capitalised

banking equities emerged as the key determinants as they provided considerable

support to the broader market. In fact, Bank

of Valletta plc secured its positive stance, while HSBC Bank Malta plc turned positive with a significant appreciation

following four weeks of declines. Conversely, Lombard Bank plc touched its all time lows, while GO plc plunged lower as headwinds from

abroad dampened investors enthusiasm towards the equity.

In the week gainers

prevailed over losers, as from the 14 active equities losers and non-movers

tallied to four, while gainers totalled six. Total turnover for the week

doubled to EUR759,049 traded over a total of 127 transactions which consisted

of 650,963 shares.

In the Malta Government Stock market, investors mirror imaged last week’s

position. In fact, in line with German Bunds, local sovereign debt experienced

higher yields as local investors applied selling pressure, thus pushing prices

lower. From the 21 active stocks, 15 closed lower, while six registered minimal

gains. Total turnover for the week was on low side as just over EUR2.5m was

traded.

In the Corporate Bonds market participants

displayed signs of encouragement, as from the 28 active issues, 13 closed

higher, four drifted lower, while 11 closed unchanged. The 7.15% MIH USD 2015-2017 headed the list of gainers with a 3.5 per

cent appreciation.

In the equity market, Bank of Valletta plc maintained its

recent upward trend with a further appreciation of 3.2 per cent, thus surging

by 11.4 per cent in the month of August. The banking equity was active

throughout the week closing higher in three sessions, while it slipped lower in

the mid-week sessions.

The equity was the second most liquid,

as a total of 95,010 shares changed hands across 36 trades to close the week at

EUR2.29.

Likewise, HSBC Bank Malta plc diverted towards positivity following a series

of descents. The equity managed to partially off-set all losses by registering

a significant 4.2 per cent appreciation to re-touch the EUR2.75 price level. A

total of 14 transactions were dealt across 27,276 shares.

The other active financials were Middlesea plc and Lombard Bank plc. The former gained just below five per cent over a

single session to close at EUR0.635, while the latter extended its negative

momentum by recording a further decline of 2.5 per cent, thus touching an all

time record low of EUR1.95.

From the telecommunications sector, GO plc plummeted by a hefty 14 per

cent, as investors lacked confidence following the news that Forthnet has

issued an announcement regarding the extraordinary general meeting held on the August

23, 2012, in which one of the resolutions proposed an increase in share

capital. On the following day the company announced that it will be taking a

decision whether to participate or not in the capital increase at a board

meeting which is to be held before the end of September. The equity was active

in four sessions as it recorded the said loss in the first two sessions, while

it closed flat at EUR0.85 in the mid-week session and Thursday.

Meanwhile, on Friday the company

announced a profit before tax of EUR20.4m compared to the loss of EUR14.1m in

the comparative period in 2011. The Group recognised that the said gain is

complemented by the sale of property in Qawra. It also stated that whilst

results in 2011 were negatively impacted by the impairment taken of the

company’s indirect investment in Forthnet, no material impairment is being

recognised on this investment during the period under review.

Similarly, both Maltapost plc and Grand

Harbour Marina plc were among the list of losers. The former got hammered

by 18.2 per cent to close at EUR0.63, as sellers’ reaffirmed control thus

pushing the equity towards markable loss of 37 per cent on a year-to-date basis.

Likewise, 6.5 per cent was shaved-off from the latter’s share value as 1,000

shares changed hands over a single session.

On a positive note, Simonds Farsons Cisk plc rose by 1.5

per cent on Thursday over a mere 700 shares to close the session at EUR2.08.

Furthermore, both International Hotels

Investments plc and Crimsonwing plc

were noted on the list of gainers. The hotelier’s equity appreciated by a scant

of 0.2 per cent over 62,920 shares, while the I.T operator soared by 23.4 per

cent on Tuesday over 3,800 shares to close at EUR0.26. Meanwhile, the other

active I.T. equity was RS2 Software plc

which traded flat at EUR0.50 over a single trade of 7,493 shares.

Finally, the other non-movers for the

week were Malta International Airport

plc, Medserv plc and Malita Investments plc, all of which

maintained their previous closing prices at EUR1.74, EUR3.95 and EUR0.52

respectively.

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]