MSE

Trading Report for week ending October 12, 2012

Index

up as financials surge

The Malta Stock Exchange (MSE) Index extended

its streak of gains to five consecutive weeks with a further appreciation of

1.4 per cent, thus recording a gain of just shy of three per cent on a

year-to-date basis. In the week financials offered leadership and emerged as a

primary source of strength to the broader market. In fact, Bank of Valletta plc, HSBC

Bank Malta plc and Lombard Bank plc

managed to snap back significant percentage gains from their recent downward

trend. Furthermore, Simonds Farsons Cisk

plc was stronger in the week to reach new highs. Conversely, Midi plc succumbed to selling pressure

once again by registering a markable loss.

Total trading for

the week was based over 13 equities, in which gainers showed impetus as eight

moved higher, three edged lower while the remaining two closed unchanged. Turnover

escalated further to just over Eur1.1m which was dealt over a total of 126

transactions which consisted of 926,245 shares.

Meanwhile, in the Government Stock Market, in line with

German Bunds, local sovereign yields increased. Locally investors aimed in

shifting their assets towards riskier arbitrage opportunities following

encouraging news from the debt-crisis front. In fact, from the 22 active stocks

15 closed lower, four posted minimal gains, while three closed flat. Turnover

in the week decreased to just over Eur1.8m, in which 26 per cent were traded

within the 5% MGS 2021.

In the Corporate Bonds market, yields were

mixed as nine traded in positive territory, 10 closed unchanged, while four

recorded scant losses. The 6.25% IHI

2017-2020 headed the list of gainers with a 1.5 per cent appreciation.

In the equity market, highly

capitalised banking equities managed to halt their stream of losses. In fact, Bank of Valletta plc shares rose by 1.8

per cent or Eur0.04 to close the week at Eur2.23, after having traded at a low

of Eur2.15. The equity was active throughout the week, having declined on

Monday, closed unchanged on Tuesday, while gathering a 3.7 per cent gain in the

subsequent three sessions. The banking equity had the lion’s share as total

trading value amounted to Eur710,578 traded over 325,636 shares.

In line with its peer, HSBC Bank Malta plc managed to snap

back all the losses incurred over the previous three weeks by registering a 3.7

per cent or Eur0.10 gain. The banking equity was active in two sessions, having

closed flat in the mid-week session, while it recorded the said gain on Friday

to close at Eur2.80.  

Similarly, following seven consecutive

weeks of losses, in which Lombard Bank

plc plunged by 17.7 per cent, the share price managed to snap back with a

3.3 per cent gain. Activity was low  and

spread over three sessions in which the said gain was recorded on Tuesday to

close the week at Eur1.88.

From the Insurance sector, Middlesea Insurance plc shares added a

further 3.3 per cent to their value, thus totalling to an 18.5 per cent

appreciation over three weeks. A total of 3,500 shares were  traded to close the week at Eur0.78. Conversely,

the other active financial equity, FIMBank

plc, depreciated by 1.3 per cent over a single session to close the week at

$0.79

Meanwhile, GO plc advanced by a further 0.9 per cent, thus rebounding back by

14.8 per cent over a three week period. The telecommunications equity was

active in four sessions as it plunged by 7.2 per cent on Tuesday but managed to

bounce back by gaining 8.6 per cent on Wednesday and Friday. A total of 77,950

shares changed ownership over 17 trades to close at Eur0.979.

Furthermore, from the beverage

industry, Simonds Farsons Cisk plc upheld

their inclining position by gaining a further 2.2 per cent. The equity was

active in two sessions in which 5,128 shares

were traded to close the week at the Eur2.35 price level, thus soaring by 30.6

per cent on a year to date basis.

The other gainers for the week were Malta International Airport plc and Plaza Centres plc. The former gained a

minimal 0.3 per cent on Friday to close the week at Eur1.735, while the latter

rose by 1.7 per cent over a single trade of a mere 100 shares to close at Eur0.59.

On the contrary, Midi plc plummeted by 10.7 per cent on Thursday over significant

volumes of 401,000 shares to close at Eur0.25. The other loser for the week was

Island Hotels Group Holdings plc which

decline by 5.4 per cent to end the week at Eur0.799.

The non-movers for the week were Medserv plc and Maltapost plc which closed unchanged at Eur3.99 and Eur0.71

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]