Index lower as sell-off persists

MSE Trading Report for week ending September 20, 2013

The Malta Stock Exchange (MSE) Index upheld its sell-off momentum for the sixth week registering a 1.1 per cent loss to end the week at 3,341.127 points. The larger companies emerged as the most vulnerable, in turn affecting negatively the broader market. Investors primarily lacked support in financial equities, with HSBC Bank Malta plc maintaining its downward trend, followed by Bank of Valletta plc which also turned lower following last week’s minimal gain. On the contrary, investors’ enthusiasm was regained in Maltapost plc locking a remarkable gain and reaching an all-time high. Malta International Airport plc (MIA) also gained following its recent negative trend.

Total turnover for the week reached just over €1.05m, traded across a total of 597,115 shares. This week’s activity was based over 14 equities – nine locked negative returns, four rose, while Middlesea Insurance plc closed unchanged at €0.80.

In the local sovereign market investors maintain a cautious approach despite Wednesday’s news that the Federal Reserve will refrain from kicking-off its tapering programme. In line with German Bunds as yields in the local sovereign market dropped while prices rose as turnover reached just over €33.4m, with the short-dated 3.75% MGS 2015 issue emerging as the most liquid as €10.6m was traded.

Meanwhile, in the corporate front, turnover amounted to a value of €437,528 traded over 20 issues. As opposed to the previous week the 4.25% BOV 2019issue registered a loss of 1.9 per cent.

In the equity market, banks proved to be this week’s laggards. HSBC Bank Malta plc registered a loss of 1.8 per cent on a volume of 178,548 shares to close at €2.455, a price level last recorded in May 2009. After accounting for this week’s loss, the equity incurred a notable 11.2 per cent loss over the past six weeks.

Bank of Valletta plcshed last week’s gain with a 0.4 per cent drop, despite registering a 0.2 per cent increase on Thursday. The equity was active across 34 trades worth €173,695 to end the week at €2.341, after touching weekly highs of €2.36.

The other active banking equity was Lombard Bank Malta plc which fell by 2.1 per cent to close at €1.86. A 2.4 per cent loss was registered on Tuesday, managing to regain a minimal 0.3 per cent during Friday’s session. A total of 12,407 shares changed ownership.

International Hotel Investments plcdeclined by 3.5 per cent over a mere 620 shares to close the week at €0.82, while Island Hotels Group Holdings plc upheld its upward trend with a further 2.6 per cent gain to close at €0.99 – a level regained since January 2011.

In the I.T. sector, RS2 Software plc declined from its all-time high of €1.90 registering a loss of 2.6 per cent. 6pm Holdings plc gained 1.7 per cent during Tuesday’s trading session when 25,000 shares changed hands to close at £0.61. Meanwhile, Crimsonwing plc registered a weekly loss of 1.3 per cent to return to the €0.74 closing price.

Maltapost plcshares soared gradually to a 10 per cent gain reaching an intra-week record high of €1.105. Activity in this equity saw 74,166 shares traded ending the week at €1.10.

Meanwhile, the other gainer for the week was MIA which gained 2.1 per cent during Friday’s session to close at €1.92. This results in a year-to-date gain of 6.7 per cent which better reflects the increase in passenger movements registered across the Airport’s business.

On the contrary, Malita Investments plc registered a 1.9 per cent decline, followed by GO plc which declined by 1.3 per cent to end the week at €1.49.

The other negative performer for the week was Tigne Mall plc which edged lower by just below one per cent. The Shopping Complex operator was traded across modest volumes of 4,000 shares to close at €0.51.