MSE

Trading Report for week ending August 24, 2012

Index

ends negative saga as BOV shares surge

Following four

consecutive weeks of losses the Malta

Stock Exchange (MSE) Index managed to re-position itself in positive

territory to close the week at 3,049.279 points, thus up 0.71 per cent.

Throughout the week the index showed impetus as it traded higher in four out

five sessions, with the mid-week session emerging as the main driver as it

appreciation by 0.72 per cent. This week banks were in the limelight, with Bank of Valletta plc securing last

week’s gains with a markable appreciation, while HSBC Bank Malta plc, Lombard

Bank plc and FIMBank plc closed

lower as sellers’ reaffirmed control.

The week was

characterised by nine equities being active, in which for the second week in a

row losers prevailed over gainers, as four slid lower, two gained ground, while

three closed unchanged. Total turnover for the week amounted to EUR376,267

traded over a total of 303,028 shares which were executed across 94 transactions.

In the Malta Government Stock market, as the European turmoil eased a number of investors

tended to shift their assets towards riskier zones, while others upheld their

cautious position. Similarly the MGSs had a mixed week as out of the 22 active

stocks, 11 appreciated in value, 10 drifted lower, while one closed unchanged.

The medium-dated 6.1% MGS 2015 issue

was the most liquid issue as total trading value amounted to EUR3.7m.

Meanwhile, turnover for the week amounted to EUR17.1m.

In the Corporate Bonds market running yields

opted for opposing positions, as from the 13 active issues four traded in

positive territory, six edged lower, while three closed flat. The 7.15% MIH 2015-2017 headed the list of

gainers with a 1.3 per cent appreciation.

In the equity market, Bank of Valletta plc shares were the

only gainers among banking equities. In fact, the bank drove the index towards

a positive end to the week, with a significant gain of 5.7 per cent. The equity

experienced positive momentum through the week as it traded higher in four

sessions while it registered a loss of 1.9 per cent on Tuesday. The banking

equity had the lion’s share as total trading value reached EUR154,389 executed

over 71,367 shares to close at the EUR2.22 price level.

Conversely, HSBC Bank Malta plc upheld its streak of losses to five weeks in a

row with a further decline of 0.3 per cent, thus re-touching the EUR2.64 level.

The equity was active in four sessions closing lower in one, posting a gain on

Wednesday, while it closed flat in the following two sessions. A total of

12,352 shares changed hands across eight transactions.

Furthermore, in line with the latter’s

footsteps, Lombard Bank plc shares

plummeted by just below seven per cent or EUR0.15 to close the week at EUR2.00,

thus heading the list of losers on a year-to-date basis with a 25.9 per cent

decline. Meanwhile, on Thursday the company announced its results for the first

six months ended June 30, 2012. It was noted that the Group’s profit before tax

reached EUR4.3 when compared to EUR7m reached in 2011, thus a decrease of 38

per cent, while pre-tax profit of Lombard Bank amounted to EUR4.9m when

compared to the EUR6.2 in 2011, a decrease of 21 per cent.  

The other active banking equity was FIMBank plc which recorded a loss of

3.6 per cent over a single session of 3,000 shares to close at $0.80.

From the telecommunications sector, GO plc continued to wipe-out the gains

recorded earlier in the year with a further decline of three per cent to close

at EUR0.99. The equity traded lower in the first and last session of the week,

while it closed unchanged on Wednesday and Thursday. Total turnover amounted to

71,070 shares which were dealt over 19 trades.

On a positive note, Simonds Farsons Cisk plc clicked

another notch higher by gaining a further one per cent. The beverage equity was

active in one session in which 5,492 shares changed ownership to close at EUR2.05,

thus enhancing its year-to-date performance to just below 14 per cent.

Meanwhile, both Malta International Airport plc and RS2 Software plc closed the week unchanged. The former closed the

week flat at EUR1.74 over 17,700 shares, while the latter maintained the EUR0.50

price level over a significant volume of 111,267 shares,   traded in two sessions over six deals.

The other non-mover for the week was Malita Investments plc which closed at EUR0.52

over a single deal of 2,000 shares. 

Finally, on Friday International Hotels Investments plc announced its financial

statements for the first six months ended June 30, 2012. The company registered

a loss before tax of EUR12.6m, compared to a loss of EUR14.6m registered in the

same period in 2011. Furthermore, it was noted that revenue for the period

under review improved to EUR56.4m,  a

rise of 16.08% from 2011, of which 5.6 per cent accounted

from the Marina Hotel which was acquired earlier in 2012, while 10.4 per cent

were contributed by Corinthia Hotel St Petersburg, Corinthia Hotel

Tripoli and CHI Limited, the operating arm of the Group

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]