Index gains after weeks of decline

The negative outlook which haunted the local equity market during the past weeks came to an end, as the Malta Stock Exchange closed yesterday’s session at 3,346.04 points, hence up by 0.7 per cent on the week. Since its last week-on-week gain, back in January 2011, the local index witnessed 12 weeks of losses, during which it lost over 14 per cent. However, this week’s gain eased minimally such losses as the year-to-date decline now stands at 11.5 per cent. Throughout the week turnover in the equity market regained some steam with investors’ focusing their attention on Go plc shares while the two major banking equities followed. Activity in the equity market was spread across nine equities as over €626,000 was transacted across 154 deals of 409,263 shares. Three equities, led by Simonds Farsons Cisk plc gained, five closed lower, while Bank of Valletta plc shares closed flat.

In the fixed-income market, turnover reached just over €26 million with a hefty €25.9 million being traded in the local Government Stock market. The 7.8% MGS 2018 was the most liquid as over €6.8 million was dealt across three transactions. Yesterday, the Treasury announced that the government will be offering to the public two fixed-rate stocks for an aggregate amount of €100 million subject to an over-allotment option of €50 million in the event of over-subscription. A floating rate issue maturing in 2013 linked to the six-month Euribor will also be issued for a total amount of €52 million. Prices for the fixed-rate stocks will be announced on Thursday.

In the Corporate Bonds market, €322,625 was traded over 45 deals of 336,394 nominal. The 4.8% Bank of Valletta plc 2020 was the most traded as over €81,000 were transacted across four deals. The 7.15% Mediterranean Investment Holdings plc Euro 2015-2017 was the week’s top performer with an eight per cent gain.

Simonds Farsons Cisk plc outperformed the market with a hefty 8.24 per cent or €0.14 gain. The equity built further gains following last week’s positive financial results for the year ended January 31, 2011. Throughout the week turnover in the equity reached €42,434 dealt across nine deals as the equity’s price hovered between a weekly low of €1.79 and a high of €1.84, the week’s closing price.

The other two gainers for the week emerged from the financial sector with HSBC Bank Malta plc topping the list. In fact the bank gained just over three per cent or €0.09 as it closed the week at €3. The equity closed four trading days higher while trading lower mid-week with a minimal 0.34 per cent loss. Turnover in the banking equity was the second highest as nearly €133,000 was recorded over 28 transactions.

Go plc was the most traded equity for the week as 62 deals of 165,251 shares worth €227,218 were executed. The equity persisted with its negative momentum as it shed a further 5.6 per cent to end the week at €1.349. Since the beginning of the year Go shares are among the worst performers with a hefty 30 per cent loss.

Meanwhile, Middlesea Insurance plc gained 1.2 per cent or €0.01 as the insurance firm closed the week at €0.85 after having traded at a high of €0.89. A total of 17,858 shares changed hands across five deals. Conversely, FIMBank plc shares which were only active during Wednesday’s session traded lower at $0.87 as eight deals of 60,870 shares were recorded.

Bank of Valletta closed the week unchanged despite having traded at a weekly high of €2.895 and a low of €2.85. A total of 35 transactions worth €121,213 were executed. On Friday, the bank announced that the board of directors approved the group’s and the bank’s interim unaudited financial statements for the six months ended March 31, 2011. Profit before tax for the group declined slightly to €45.1 million, down from €47.4 million, while earnings per share increased minimally to €0.126. An interim dividend of €0.0406 net of tax, has been declared by the board of directors in respect of the six months ended March 31, 2011. This will be paid on May 26 to those members appearing on the bank’s register of members, as at close of business on Thursday, May 12.

In the IT sector, RS2 Software plc edged 2.08 per cent lower as the equity’s price barely fluctuated, having closed the week at €0.519. Turnover reached just over €21,000 as 40,500 shares were dealt over three deals. The IT specialist performance since the beginning of the year stands at over eight per cent.

Malta International Airport plc shares were also on the downside as the equity lost a meagre 0.06 per cent to close the week at €1.699. A total of 12,000 shares were traded over two deals.

Medserv plc lost 4.8 per cent as it closed the week at €4 after having traded at a low of €3.98. Two deals of 2,400 shares were executed.

Meanwhile Midi plc announced that the board of directors met on Thursday and approved the audited consolidated financial statements and the preliminary statement of snnual sesults for the financial year ended December 31, 2010. Profit before tax for the group declined to €1.51 million, down from €1.75 million in 2009. The directors did not recommend the payment of a dividend.

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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