MSE

Trading Report for week ending September 20, 2012

IHI

shares lift index towards a markable gain

The Malta Stock Exchange (MSE) Index upheld

its positivity by registering a significant gain of 1.2 per cent to end the

week at 3,111.798 points, thus turning positive on a year-to-date basis.

Following the shortened week due to Friday’s National holiday, the index

displayed strength in the first session of the week, while it swayed from

negative to positive in the subsequent sessions. As opposed to the previous

week banking equities were succumbed to selling pressure with Lombard Bank plc touching a new seven

year low, while Bank of Valletta plc

and HSBC Bank Malta plc closed the

week lower by recording scant losses. Conversely, International Hotels Investments plc outperformed with a notable

gain, while Simonds Farsons Cisk plc

reached new highs over relatively low volumes.

Throughout the week

investors maintained a positive attitude, as from the 12 active equities six

appreciated in value, four drifted lower, while two closed flat. Total turnover

for the week declined to EUR479,665 traded over 93 transactions which were

dealt across 491,482 shares.

Following last

week’s announcement of further quantitative easing by the United States Federal

Reserve, in line with German Bunds, local

sovereign debt yields drifted lower as investors were comforted with the

announced monetary policy. In fact, from the 15 active stocks 11 edged lower,

while four posted minimal gains. Turnover in the week increased to just over EUR3.2m,

with the long-dated 5.2% MGS 2020 being the most liquid as total trading value reached

just over EUR1.1m.

In the Corporate Bonds market, yields took

diverging directions as from the 22 active issues, nine gained ground, five

closed lower, while eight closed unchanged. The 4% AX Investments 2013 headed the list of gainer with a 2.3 per

cent gain.

In the equity market, International Hotels Investments plc

shares surged by 6.6 per cent or EUR0.055 to close the week at EUR0.895. The hoteliers’

equity was active in two sessions gathering a seven per cent appreciation on

Monday, while it shaved-off a minimal of 0.6 per cent on Wednesday. A total of

90,465 shares changed ownership across 14 trades.

Likewise, from the beverage sector Simonds Farsons Cisk plc continued to

climb exponentially by registering a further gain of 3.3 per cent. The equity

commenced trading on Tuesday were it gained just below one per cent, while it

gathered a total of 2.4 per cent over the following two session to close the

week at EUR2.17, thus paving the way to a 20.6 per cent gain on a year-to-date

basis. Meanwhile, on Tuesday the company announced that the board of Directors

is scheduled to meet on September 26, 2012, to consider and approve the

financial statements for the six month period ending July 31, 2012.

Conversely, from the financial sector,

both Bank of Valletta plc and HSBC Bank Malta plc closed the week

into lower grounds. The former surrendered 0.5 per cent from last week’s

appreciation to close at EUR2.265 over 19,835 shares, while the latter slipped

by a mere of 0.04 per cent across six trades of 22,900 in volume to end the

week at the EUR2.739 price level.

Similarly, Lombard Bank plc retained it recent negative saga for the fifth

consecutive week with a further descent of 1.6 per cent. The banking equity

recorded the said loss on Thursday, in which 4,500 shares were traded across

three deals to close the week at EUR1.90. The other active financial was Middlesea plc, which following two

weeks of inactivity returned to trading with a 2.4 per cent rise over a single

session to close at EUR0.65.

From the telecommunications sector, GO plc equally cancelled last week’s

gain by recording a loss of 0.6 per cent. The equity had the lion’s share as

total trading volume totalling 132,025 shares to close at EUR0.85 after trading

at an intra-week low of EUR0.82.

On a positive note from the postal

industry, Maltapost plc extended its

recent upward momentum by gaining 3.1 per cent and closing the week at EUR0.63,

thus snapping back 4.7 per cent over two weeks from its lows of EUR0.63

recorded in the last week of August. Furthermore, Malta International Airport plc clicked another notch higher by

posting a minimal gain of 0.06 per cent. The equity was active over 64,836

shares to close the week at EUR1.76.

In addition, enjoying a strong week

was RS2 Software plc which rose by

four per cent on Thursday on 24,507 shares and thus moving back to the EUR0.52

level.

Meanwhile, the non-movers for the week

were Midi plc and Malita Investments plc which closed at EUR0.28

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]