Large caps drag index towards a 1.4 per cent loss
MSE Trading Report for week ending August 23, 2013
Following last week’s flat trading the Malta Stock Exchange (MSE) Index succumbed to a 1.4 per cent loss to close the week at 3,443.33 points. The broader market was primarily hindered due to the notable losses registered by highly capitalised equities which pushed the index towards a five day streak of losses. In fact, all listed banks were bounded by selling pressure with both Bank of Valletta plc and HSBC Bank Malta plc recording substantial losses, followed by Malta International Airport plc which extended its bearish trend for the third consecutive week. Conversely, the sole gainers for the week were Island Hotels Group Holdings plc which managed to offset last week’s losses and Middlesea Insurance plc which returned to the trading desk locking a modest gain.
Higher volumes were noted this week as 965,742 shares were dealt across the 122 trades executed. Notwithstanding, the remarkable turnover, negative sentiment prevailed as 11 out of the 14 active equities lurched lower, two managed to capture a gain, while the sole non-mover for the week, Plaza Centres plc, closed flat at €0.565, after touching weekly lows of €0.56.
Meanwhile, in the local Sovereign front, in line with foreign sovereign debt, investors upheld their sell-off position, as speculation that the US Federal Reserve will commence its tapering position dampened investors’ sentiment. In fact, out of the 20 active stocks, 14 noted rising yields as prices fell. Total turnover for the week reached just over €12.2m.
In the fixed-income corporate front, activity was based on 19 issues with yields opting for diverging positions, as four added value, three hinged lower, while 12 closed flat. The 4.8% BOV 2020 issue headed the list of gainers with a 3.1 per cent appreciation.
All listed equities in the banking sector ended this week on a lower note. In fact, Bank of Valletta plc fell gradually throughout the week with the exception of Thursday’s session during which it managed to snap back a 0.9 per cent appreciation. The equity incurred a 1.7 per cent week-to-week loss on a volume of 65,411 shares to end the week at €2.37.
In line with its peer, HSBC Bank Malta plc, registered a 2.6 per cent decline as investors turned their back on the banking equity during three sessions, despite commencing the week with a marginal gain of 0.4 per cent. This equity had the lion’s share of this week’s turnover as total trading value reached €292,925 dealt over 111,850 shares, to end the week at the €2.62 level.
Still in the banking sector, FIMBank plc extended its streak of losses by posting a further 1.2 per cent decline on Thursday to close at $0.94, while Lombard Bank plc (LOM) cancelled last week’s gain as it registered a loss of 0.5 per cent on Monday to return to the €1.90 price position. Meanwhile, on Thursday LOM announced its financial results for the first six months ending June, 30, 2013, in which the Group’s profit before tax was noted at €4.2m, as opposed to the €4.3m registered in the same comparable period in 2012. It was also noted that the Bank increased its impairment allowances by €1.6m, thus ensuring better provision levels.
On the same note, the listed I.T. equities took a drift lower following their recent all time record highs. In fact, 6pm Holdings plc was the prime loser with a 1.5 per cent decline to close the week at £0.601, while RS2 Software plc shaved-off 0.6 per cent from last week’s €1.73 price position to close at €1.72. Meanwhile, Crimsonwing plc dwindled by a minimal 0.1 per cent on Thursday to end the week at €0.739. On Wednesday, the company announced that the Annual General Meeting will be held on Wednesday October 16, 2013.
Conversely, Island Hotels Group Holdings plc soared by 7.7 per cent, thus rebounding from the 5.8 per cent loss recorded last week. The hoteliers’ equity was traded over high volumes of 257,500 shares to close at €0.70.
On the upside, Middlesea Insurance plc locked a 0.6 per cent appreciation on Tuesday, when a mere 116 shares changed hands to close at €0.82.
On the contrary, both Malta International Airport plc and GO plc ended the week on a sour note. The airport operator extended its recent stream of losses by registering a loss of 2.4 per cent to close at €1.95, while the latter plummeted by 2.7 per cent during a single session to close at €1.60. Meanwhile, on Thursday the telecommunications equity announced that Forthnet, in which GO plc is a shareholder, proposed a share capital increase with cash payment and by way of pre-emption rights in favour of the existing shareholders. In this regard, GO stated that it will be in a position to take a decision whether to participate in the said capital increase in the coming weeks, once the prospectus is issued.
Finally, the other losers for the week were Midi plc and Tigne Mall plc. The former declined by 2.1 per cent during Tuesday’s session over 100,800 shares to close at €0.235 after trading flat on Monday, while the latter plunged by 2.8 per cent over 44,000 shares to retreat to the €0.515 price level.