MSE Trading Report

for week ending September 7, 2012

Index turns negative

as large caps lose ground

Following two consecutive positive weeks the Malta Stock Exchange (MSE) Index pulled

back by 1.2 per cent to close the week at 3,054.975 points. Despite trading

higher in three sessions the index succumbed to selling pressure on Tuesday and

Thursday, totalling to 3.7 per cent depreciation. As opposed to the previous

week Banks experienced a negative week with Bank of Valletta plc shares emerging as the prime losers, followed

by HSBC Bank Malta plc and Lombard Bank plc. In addition, International Hotels Investments plc

traded lower on the week despite a significant appreciation on Friday, while Malta International Airport plc was the

only gainer for the week following two weeks of flat trading.

Contrary to the previous week, losers

triumphed over gainers as six drifted lower, five closed flat, while the other

advanced in value. Total turnover for the week increased to EUR816,827 traded

over a total of 119 transactions which consisted of just over one million

shares.

In the Malta

Government Stock market, the

sell-off momentum continued to prevail, as yields inclined further. In fact,

from the 20 active stocks, 15 declined in value, while five posted minimal gains.

The 5.9% MGS 2015 short-dated issue

was the most liquid issue as total trading value amounted to EUR643,432. Total

turnover for the week almost doubled as it rose to just over EUR4.1m

In the Corporate

Bonds market, companies’ bonds garnered support for the second consecutive

week, as from the 19 active issues nine gained ground, six closed unchanged,

while the remaining four edged lower. The main gainer for the week was the 5.9% HSBC Bank Malta 2018 which

appreciated by just below three per cent.

In

the equity market, Bank of Valletta plc

shares declined by just below two per cent following three positive weeks. The

banking equity traded higher in four sessions while sellers re-affirmed control

on Tuesday as the equity plunged by 8.3 per cent for no explainable reason. A

total of 108,631shares changed hands across 39 transactions to close the week

at EUR2.245, thus limiting to just over one per cent appreciation on a

year-to-date basis.

Likewise,

HSBC Bank Malta plc re-shifted

itself towards lower levels with a 0.6 per cent loss. The equity was active in

three sessions as it registered the said loss in two sessions, while it closed

unchanged on Thursday. A total of four trades worth EUR12,026 were traded over

4,390 shares to close the week at the EUR2.735 price level. The other active

bank was Lombard Bank plc which

extended its streak of losses with a further depreciation of 0.5 per cent over

a single session to close the week at EUR1.94, thus touching its all time lows.

Meanwhile,

the other active bank, FIMBank plc,

closed the week flat at $0.80 over a single session in which 6,432 shares

exchanged hands over two trades.

From

the hoteliers sector, International

Hotels Investments plc (IHI) recorded a 1.2 per cent depreciation following

last week’s minimal gain. The equity was active in two sessions as it tumbled

by 7.1 per cent on Thursday, while it than managed to snap back most of the

losses in the following session to close at EUR0.84. Meanwhile, on the Friday

the company announced that Medina Tower, a company in which IHI has a 25 per

cent shareholding has signed a construction contract for the sub and superstructure

works of a project with a Turkish contractor.

On

a negative note, Midi plc slipped by

a significant 13.8 per cent over high volumes of 505,000 to close at EUR0.25,

while Plaza Centres plc lurched

downwards by 1.8 per cent over five deals of 72,000 shares to close the week at

EUR0.54.

On

a positive note, Malta International

Airport plc closed the week up by 0.6 per cent, thus re-touching the EUR1.75

level. The airport operator was active over three sessions as it swayed from

positive to negative in the first two, while it registered the said gain in the

other. Meanwhile, on Wednesday the company announced its traffic results for

the month of August were passenger movements reached an all time record of

461,153. This movement is equivalent to a 7.9 per cent increase when compared

to the same period last year. Analysing the first eight months for the year in

term of passenger movements the company experienced an increase of 3.7 per cent

when compared to the same period in 2011.

Meanwhile,

both Simonds Farsons Cisk plc and GO plc closed the week unchanged.

The former closed flat at EUR2.08 over a single trade of 1,050 shares, while

the latter maintained the EUR0.85 price level over four sessions after trading

at a weekly high of EUR0.90.

The

other non-movers for the week were Maltapost

plc and Malita plc which closed

at EUR0.63 and 0.52 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]