Index gains as positive sentiment prevails

The Malta Stock Exchange (MSE) Index upheld its upward trend as it gathered a further gain of 0.6 per cent, thus locking a notable appreciation of 2.5 per cent over the past four weeks. Despite investors applied selling pressure in three sessions, Monday’s remarkable gain of 1.1 per cent which was driven by the positive financial results reported by HSBC Bank Malta plc, proved determinant in maintaining the index positive stance. In the week Middlesea Insurance plc was the best performer and closed markedly higher, while Midi plc shares extended their bullish trend. Conversely, GO plc halted its recent ascent by recording a marginal decline.

Trading activity in the week declined to just over Eur1.1m which was dealt across 16 equities, in which gainers upheld their reigning momentum as six closed higher, four edged lower, while the remaining stocks closed unchanged. Total volume for the week amounted to 1.3m shares which were executed over 171 transactions.

Meanwhile, in the Government Stock Market turnover turned higher towards the Eur16m level which was traded over 21 issues. Once again most of the stocks saw their yields turning lower as the non-governance position in Italy weighted on investors’ sentiment. In the Corporate Bonds market activity was dealt over 16 issues with total trading value amounting to Eur461,013. The 7.5% Mediterranean Bank plc 2019 was the best performer for the week as it gathers a gain of 1.5 per cent.

From the equity market, financials proved to be a key source of support with Middlesea Insurance plc emerging as the prime gainer from this sector. In fact, the insurance operator soared by just below 14 per cent on Monday following the positive financial results reported in the previous week. However, trading was relatively low as 15,700 shares changed hands to close the week at the Eur0.90 price level.

Likewise, Bank of Valletta plc gained 0.3 per cent to close the week at Eur2.285, while Lombard Bank plc regained last week’s loss with a 1.3 per cent appreciation. The former was active over 107,432 shares which were dealt over 53 trades, while the latter was traded over six transactions worth Eur91,290 to close the week at the Eur1.915 price level.

From the same sector, HSBC Bank Malta plc closed the week higher by 0.4 per cent over four sessions to close the week at Eur2.75. Meanwhile, on Monday the company announced its financial statements for the year ending December 31, 2012, in which it stated that profit before tax increase to Eur95m, thus an increase of eight per cent when compared to the previous financial year. In addition, the board of directors will be proposing a net dividend of 5.1 per cent at the Annual General Meeting which will be held on April 18, 2013.

Meanwhile, the other traded financial was FIMBank plc which closed the week flat at $1.00. A total of 101,350 shares changed hands across four transactions. The bank also announced its annual results for the year ended December 31, 2012 in which it reported that the Group reported an increase in profit before tax of 6.8 per cent thus reaching $8.8m. The Directors recommended for the approval of the AGM a final net dividend of $0.0369 to be paid on May 16, 2013.

Furthermore, Midi plc shares continued to display strength with a further gain of five per cent. Accounting for this week’s gain the equity enhanced its year-to-date performance to 14.6 per cent. Total trading volume was on a high note of 0.5m shares which were dealt across 21 deals to close the week at 0.315.

From the I.T. sector, 6pm Holdings plc shares fetched a new record for the year with a further gain of 4.7 per cent. The equity registered the said gain in the mid-week session over 65,884 shares to close the week at £0.45. Meanwhile, both RS2 Software plc and Crimsonwing plc closed the week unchanged at Eur0.90 and Eur0.54 respectively.

On a sour note, GO plc closed marginally lower by 0.4 per cent after trading at an intra-week high of Eur1.40. The telecommunications equity was active over 11,100 shares to end the week at the Eur1.399 price level. Similarly, Malita Investments plc emerged as the main dragger for the week with a loss of 3.8 per cent to close at the Eur0.51 price level.

The other losers for the day were Grand Harbour Marina plc and Plaza Centres plc which declined by 3.5 per cent and 0.9 per cent respectively. The former was traded over a single transaction of 1,000 shares to close at Eur1.91, while the latter closed lower at Eur0.58 after trading at weekly highs of Eur0.589.

Meanwhile, Malta International Airport plc closed the week unchanged at Eur1.81 over 108,990 shares. On Monday the company announced its traffic results for the month of February were passenger movements for the said month increased by 4.2 per cent when compared to the same period in 2012.

Finally, the other non-movers for the week were Simonds Farsons Cisk plc and Maltapost plc which closed flat at the Eur2.60 and Eur1.05 price levels.