MSE

Trading Report for week ending September 28, 2012

Double

digit gains for Middlesea and GO shares

In line with last

week’s position, the Malta Stock

Exchange (MSE) Index recorded a further gain of 0.8 per cent, thus marking

a 2.6 per cent appreciation over three consecutive weeks. Positivity loomed throughout

the week with the exception of Tuesday’s session when the index slid lower by a

minimal 0.14 per cent. In the week conviction prevailed over investors’

sentiment as from the 13 active equities, seven garnered support, four drifted

lower, while two closed unchanged. Banking equities lacked confidence with Lombard Bank plc touching a new seven

year low, while HSBC Bank Malta plc

extended its losses with a further decline. Conversely, GO plc re-positioned itself towards higher levels, followed by Maltapost plc which continued to regain

ground following the significant losses recorded throughout the past months.

This as turnover in the week increased to EUR538,118 traded over a total of 100

transactions consisting of 345,478 shares.

Meanwhile, yields

in the local sovereign debt diverged

towards an opposite direction as headwinds from abroad conditioned investors’

sentiment. Concerns of whether Spain will demand a bailout emerged as the prime

driver in shifting assets towards safer heavens. This was clearly reflected in

the 10 year German Bund yields which on Friday traded at low levels of 1.4 per

cent. In line with the latter, locally, from the 21 active stocks 18 traded

higher, while three recorded scant losses. Turnover in the week decreased to

just over EUR2.1m.

In the Corporate Bonds market, yields were

mixed as from the 23 active issues, four appreciated in value, 14 closed

unchanged, while five headed southwards. The 4.25% BOV 2019 headed the list of

losers with 2.2 per cent depreciation.

In the equity market, from the

telecommunications sector, GO plc

rebounded from the 22.7 per cent descent which commenced in the last week of

July. In fact, the equity surged by 11.8 per cent over the last three sessions

of the week, to re-touch the EUR0.95 price level. Activity was dealt over

88,000 shares which were executed across a total of 20 transactions.

Likewise, Middlesea Insurance plc emerged as the best performer of the week

as its shares rallied by 16.2 per cent. Trading was dealt over low volumes of

426 shares to close the week at EUR0.755. From the postal industry, Maltapost plc extended its exponential rise

by registering further gains of 6.1 per cent. A total of 22,875 shares changed

hands across five deals to end the week at EUR0.70.

From the beverage sector, Simonds Farsons Cisk plc commenced the

week on a positive note by gaining a further 1.4 per cent ahead of its interim

results for the six months ending July 31, 2012 which were going to be released

on Wednesday. On the said day, the company announced that profit after tax for

the six month period amounted to EUR3.8m compared to the EUR2.6m of the same

comparable period in 2011, thus a 45 per cent increase. The board of directors

also resolved to distribute an interim dividend of EUR0.0133 per share on all

ordinary shares, which will amount to a net interim dividend of EUR400,000. The

latter will be paid out on October 19, 2012 to all shareholders who appear on

the register as at the close of business on October 5, 2012.

In addition, both International Hotels Investments and Medserv plc were among the list of gainers. Following last week’s

rally, the former advanced by a further 0.6 per cent, thus moving to the EUR0.90

price level, while the latter inclined by 1.3 per cent to close at EUR4.00

after trading at an intra week low of EUR3.94.

The other gainer for the week was Plaza Centres plc which soared by 7.4

per cent on Monday, in which a single deal of 2,000 shares pushed its share

price towards the EUR0.58 price level.

Meanwhile, from the banking sector, Lombard Bank plc upheld its recent

negative momentum as it registered a markable decline of 4.2 per cent on

Friday, thus registering a depreciation of 17.7 per cent over seven successive

weeks. A total of 44,571 shares changed ownership across 15 trades to close the

week at new lows of EUR1.82.

Also from the banking sector, HSBC Bank Malta plc shaved-off a

further 0.3 per cent from its value to close the week at EUR2.73. The equity

had the lion’s share as total trading value reached EUR155,451 which was traded

across 56,844 shares.

The other active bank, Bank of Valletta plc, closed flat at EUR2.265

over two sessions in which activity took place over four deals of 24,811

shares. On Thursday the bank announced that its Annual General Meeting will be

held on Wednesday, December 19, 2012.

The other losers for the week were, Santumas Shareholdings plc and Malita plc which declined by 5.6 per

cent and 1.9 per cent respectively.

Finally, Malta International Airport plc was the other non-mover for the

week, as it closed flat at EUR1.76 over 42,500 shares which were traded across

two sessions.  

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]