Negative sentiment continues unabated

The outlook on the Malta Stock Exchange remained in negative territory as the local index closed lower by 0.41 per cent on the week. Due to a public holiday on Thursday, the MSE was active during four trading sessions, of which three closed in the red but edged minimally higher yesterday.

Notwithstanding the negative trend the two major banks were up this week, with Bank of Valletta plc topping the list of gainers. Despite gains being registered also by HSBC Bank Malta plc and Malta International Airport, losses recorded in another five equities were enough to push the index lower for the ninth week in succession. Middlesea Insurance plc shares were the worst performers with the index closing yesterday’s session at 3,464.129 points.

Turnover across all traded securities reached over €4.4 million with the Treasury Bills market taking the lion’s share. In fact, nearly €2.3 million were traded over one transaction. In the Government Stocks market, 57 deals worth €1.4 million were executed as activity was spread across 18 issues, the majority of which saw yields going higher on the week. In the Corporate Bonds market a total of €305,523 were traded over 55 transactions. The majority of the traded bonds closed higher with the 6.75 per cent Corinthia Finance 2012 ending the week as the best performer with a gain of almost nine per cent. Meanwhile in the Equities market turn­over declined to nearly €400,000, down from €816,450 traded last weeks. Ten equities were active as three gained in value, five closed lower and two closed flat.

Bank of Valletta shares were the week’s best performers having posted a 1.2 per cent or €0.035 gain. The bank was the second most liquid, as just over 44,000 shares were dealt across 43 deals worth €128,300. Throughout the week the equity’s price fluctuated between a low of €2.90 and a high of €2.95, the week’s closing price. The equity closed lower during two sessions, unchanged on Wednesday, and gained nearly 1.6 per cent yesterday. During the month of March the equity returned a negative 2.52 per cent.

Similarly, HSBC Bank Malta plc shares also closed the week on a positive note as the banking equity gained a mere 0.34 per cent or €0.01 as it closed yesterday’s session at €2.93. Tuesday’s gain was enough to push the equity higher as it closed lower during two trading sessions while trading flat on Monday. Turnover in the equity was the highest for the week as over €162,000 were dealt over 32 deals.

Conversely, Lombard Bank plc shares failed to move in line with its peers as the bank shed nearly two per cent or €0.06 during the week’s opening session. In fact the bank closed the week at €3.00 as one single deal of a meagre 300 shares was executed. However, since the beginning of the year the equity is still up by seven per cent.

Middlesea Insurance plc also closed the week on the downside as the equity headed the list of fallers. In fact the insurance firm lost a hefty 6.25 per cent or €0.06 to close the week at €0.90. Fewer than 3,000 shares were dealt over five transactions across the opening and closing trading sessions as the equity’s price fluctuated between a high of €0.95 and a low of €0.90.

The only financial equity to close the week unchanged was Global Capital plc which traded flat yesterday at €1.00 as one deal of 480 shares was executed.

Similarly RS2 Software plc traded flat at €0.35 as one deal of 1,600 shares during the mid-week session left the equity’s price intact.

Malta International Airport plc added further gains to last week’s 1.73 per cent as the airport operator moved higher by 0.57 per cent or €0.01. The equity was among the most liquid as over 27,600 shares changed hands over 17 deals. The equity closed the week at €1.77 to bring its year-to-date positive performance to nearly seven per cent.

Meanwhile Go plc lost nearly three per cent or €0.045 as it ended the week at €1.505. Throughout this short trading week the equity was active during all trading days. Over 35,000 shares were dealt across 26 transactions.

IHI shares lost 2.4 per cent or €0.02 as only two transactions of 1,001 were executed. The equity recorded this decline on Tuesday over one deal of 500 shares while it traded unchanged on Wednesday. Since the end of February up to end of March the equity’s price, which now stands at €0.83, lost almost 11 per cent.

Simonds Farsons Cisk plc shares lost 1.67 per cent or €0.03 as it closed the week at €1.77. One deal of 67 shares was executed.

On Wednesday 6PM Holdings plc announced that the company will be offering to shareholders 10,788,000 new ordinary shares of a nominal value of £0.20. The rights issue will carry the ratio of 1.4384 new ordinary share for every one existing ordinary share at an offer price of £0.25 per share. The issue will open to eligible shareholders on April 11 to April 29. Trading of the new ordinary shares is expected to commence on May 17.

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.