RS2 Software plc shares soar by 51 per cent

Three positive trading days recorded during the past week were outweighed by two negative sessions as the Malta Stock Exchange closed the week at 3,356.012 points. As a result, the local market index lost nearly 2.4 per cent, the heaviest fall in the past seven weeks as the MSE recorded its 11th consecutive week of losses. Thursday’s session was the main contributor to this decline during which International Hotel Investments plc shed almost 16 per cent. A total of 10 equities were active, seven of which lost ground, two gained and MIDI plc shares traded flat. On the positive side RS2 Software plc shares outperformed the market with a hefty 51 per cent increase in its share price following the announcement of the company’s financial results for 2010.

Meanwhile trading value in the equities market increased to over €730,000 up from €520,000 traded last week. A total of 157 deals of 362,203 shares were executed with investors unusually focusing their attention on RS2 Software plc shares. In the fixed-income market turnover reached over €9.5 million with almost €9.2 million being traded in the Government Stocks market. The 5.7% MGS 2012 was the most liquid issue, while the 5% MGS 2021 was the top performer with a slight gain of 0.31 per cent while running yields maintained their positive run. In the Corporate Bonds market activity was spread across 20 issues as a value of €383,289 was dealt over 75 transactions.

RS2 Software plc ended the week in the limelight as the IT specialist’s equity gained 51.43 per cent or €0.18 on 17 deals of 97,800 shares closing the week at €0.53. This gain followed Tuesday’s announcement of the company’s financial results for the year ending December 31, 2010. In fact, the group registered a profit before tax of €1.61 million, while the company’s revenue for the period increased by 27.4 per cent, from €5.89 million in 2009 to €7.51 million in 2010. The group’s earnings per share rose from €0.027 to €0.076. The board of directors resolved to recommend for the approval of the annual general meeting the payment of a final net dividend of €0.032 per share, amounting to €1.2 million. This dividend, if approved, at the annual general meeting, will be paid on Wednesday, June 15, 2011, to shareholders who appear on the shareholders’ register as at Monday, May 2, 2011. The firm’s annual general meeting is scheduled to be held on June 14, 2011.

HSBC Bank Malta plc shares also closed the week on a high note notwithstanding the negative trend which surrounded the other financial equities. The bank’s equity posted a 1.02 per cent or €0.03 gain as it finished the week at €2.96. The equity gained ground during the opening three sessions of the week and closed unchanged on the remaining two sessions trading at a low of €2.95 and a high of €2.96, this week’s closing price. The bank was the second most active in terms of volume as over 76,000 shares were traded over 26 deals.

Conversely, Bank of Valletta plc edged minimally lower with a 0.21 per cent or €0.006 loss as 72,672 shares were dealt across 54 deals, worth nearly €211,000. The equity closed the opening and final session of the week higher while it traded lower in the remaining sessions to end the week at €2.895, hence down by nearly 10 per cent since the beginning of the year.

Lombard Bank plc shares followed the negative outlook which surrounded the financial equities recording a 1.67 per cent or €0.05 decline. The equity thus closed the week at €2.95 as over 60,000 shares changed hands over 15 transactions.

Meanwhile, Middlesea Insurance plc shares emerged as the worst performer out of the financials active this week as the equity closed lower by a significant 5.88 per cent or €0.05 to end the week at €0.80. This decline was recorded in the opening session of the week while the equity traded sideways thereafter. A total of 15 transactions worth €12,336 were executed.

Likewise, IHI shares closed the week on the downside with an overwhelming drop of 15.7 per cent or €0.13 to finish the week at €0.70. The equity lost nearly 16 per cent on Thursday over one deal of 700 shares while it managed to recoup slightly some of this loss yesterday closing the session minimally higher. Throughout the week 6,500 shares were dealt over four deals.

On Tuesday Malta International Airport plc announced the traffic results for the month of March, which showed an increase of just over 16 per cent over the previous month. Seat capacity was also at a record high with an increase of 18.6 per cent over the corresponding period last year. These figures include the passenger movements linked to the evacuation from Libya. These positive results did little to lift the equity from another week-on-week loss as the equity’s share price closed down by a meagre 0.28 per cent to end the week at €1.755.

Go plc closed the week at €1.45 hence down by 2.7 per cent on the week, while Maltapost plc shares posted a minimal 0.1 per cent loss as the postal operator closed the week at €1.089 as two transactions of 1,220 shares were executed.

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.

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