Index sheds a further one per cent

The outlook on the Malta Stock Exchange index remained rather bleak as the majority of the traded issues closed the week in negative territory. On Friday, the local index managed to bring its 10-day negative streak to an end after it closed the week’s final trading day minimally higher. The situation in Libya continued to exert pressure on the local corporate bond market, as investors continued to sell off bonds issued by local companies with business ties in the northern part of Africa.

On the week, turnover in the fixed income market reached €3.7 million, down from €8.6 million traded last week. In the Corporate Bonds market the 7.5 per cent Mediterranean Investments Holdings 2015 was the most active with 135,500 nominal being traded over 20 deals. The bond traded at a low of €80 and a high of €89.50 but ended the week at €89. The total number of transactions in this sector totalled 144 deals worth €865,728. Meanwhile, in the Governments Stocks market nearly €2.9 million was dealt across 56 transactions.

In the Equity market, the local index closed the week at 3,573.925 points, hence down by almost one per cent, the lowest decline to be registered in the past three weeks. Turnover in this market increased to over €865,000 as 173 deals of 369,059 shares were executed. Bank of Valletta plc was the most traded while 6PM Holdings headed the list of fallers. Throughout the week, investors focused on the two major banking equities with their prices both heading downwards.

Plaza Centres plc shares closed the week on a high note notwithstanding having reported a slight decline in the company’s net profit for the year 2010. In fact, the equity’s annual financial statements for the year ending December 31, 2010 reported that profit after tax declined by 0.5 per cent to €832,700 over the previous year. Investors chose to focus instead on the net dividend of €0.075 per share recommended by the board of directors, as two deals of 6,000 shares during yesterday’s session pushed the equity’s price 18.42 per cent or €0.28 higher, to end the week at €1.80. The final net dividend, if approved at the annual general meeting, will be paid on May 6 to all shareholders who are on the company’s share register as at March 31.

In the banking sector BOV shares were the heaviest fallers with a loss of over three per cent or €0.091 on the week. The equity closed all four trading days during which it was active in negative territory. Turnover in BOV shares surpassed the €401,000 level as 81 deals of 136,447 shares were recorded. As a result of this fall, BOV’s share price performance since the beginning of the year shows a loss of almost 10 per cent.

Likewise, the year-to-date share price performance of HSBC Bank Malta plc is also down by nine per cent after closing the week on the downside, with a 0.67 per cent or €0.02 decline. The equity kicked off the opening two trading days in the red, traded flat on Thursday while gaining some ground during the other two sessions including yesterday when a single trade of 500 shares closed the week at €2.96, this notwithstanding the equity having traded ex-div on this day. A total of 112,521 shares were dealt over 42 transactions, worth over €332,141.

In the IT Sector, 6PM Holdings plc headed the list of losers as the equity lost a hefty 13.21 per cent or £0.07. However, only one deal of 1,180 shares backed this decline. Meanwhile, Loqus Holdings plc shares failed to record a change in price after the equity started the week with a gain of over five per cent. However, trades executed during the closing two trading days erased all of these gains to end the week at €0.161. On Wednesday, the company announced that the annual general meeting will be held on April 7.

FIMBank plc also closed flat at $0.90 as 40,000 shares were dealt over five transactions, despite the announcement of the bank’s financial results issued yesterday morning which report an after-tax profit of $6.74 million for 2010 compared with $1.57 million in 2009.

Meanwhile, Middlesea Insurance plc lost a modest 0.8 per cent or €0.008 to end the week at €1.002. Two deals of 2,848 shares were recorded.

Conversely, Maltapost plc posted a 1.2 per cent or €0.012 gain to end the week at €1.052. The postal operator was only active during yesterday’s session when over 13,400 shares were dealt across four transactions.

Go plc shares lost nearly 1.7 per cent or €0.03 as the equity closed the week at €1.77, after having traded at a weekly low of €1.76. Turnover reached almost €18,000 as 10,160 shares were dealt over five deals.

Malta International Airport plc shares also closed the week on a negative note as the equity’s price slipped almost one per cent lower or €0.015 to end the week at €1.735. A total of 32,790 shares were dealt over 25 transactions for a value of €56,900 as the equity’s price fluctuated between a weekly low of €1.70 and a high of €1.751.

Meanwhile, Island Hotels Group Holdings plc closed the week flat at €0.997 as 1,000 shares were dealt across two deals.

This article, which was co-mpiled 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: 2122 4410, or e-mail info@atlasjmfs.com.