The Malta Stock Exchange (MSE) index reaffirmed its negative position by recording a further loss of 0.4 per cent to end the week at 3,092,076 points. Despite positivity in three out of five sessions the index failed to position itself in a dissimilar direction, as the losses recorded by the highly capitalised Bank of Valletta plc and HSBC Bank Malta plc were the primarily cause for the index negative close. Volatility in the week was noted on high volumes as a total of 1.26m shares were traded over 227 transactions, while turnover amounted to €1.3m. The week was characterised by 14 equities being active, of which gainers and non-movers tallied to four, while losers amounted to six.

Most of the local Government Bond took a slight downbeat approach, as from the 21 active stocks 17 depreciated in value, three posted gains while one closed unchanged. The most liquid issue was the long-dated 5.25% MGS 2030 as total turnover amounted to €429, 379 traded over 15 deals. In the Corporate Bond Market trading volume remained on the high side as total turnover reached just over €1.28m. Running yields were quite unbalanced as from the 27 active issues, six gained ground, four edged lower, while 17 closed unchanged. The 5.9% HSBC Bank Malta 2018 bond issue headed the list of gainers with a 1.4 per cent gain.

In the equity market, Bank of Valletta plc was the primary laggard from the banking sector as it recorded a loss of two per cent. The equity spent the entire week showing considerable weakness as it traded at a loss in the first three sessions of the week, while posting a minimal gain on Thursday. In the last trading session of the week, ahead of the announcement of its financial results, the equity cancelled the gain recorded in the previous session to close the week at €2.40. A total of 201,966 shares were traded over 124 deals. Yesterday, just after close of trading, the Bank announced its financial results for the year ending September 30, 2011and reported a profit before taxation of €64.4m, compared to the €98.9m earned in the previous financial year, thus a decrease of 35 per cent. The Bank announced that the decrease in profit was mainly due to the uncertainty in the financial markets, particularly in the second half of the year. Furthermore, one other main factor was the charge of €15m related to the settlement of the La Vallette Multi Manager Property Fund. The board of directors proposed the payment of a final net dividend of €0.052c per share. In addition the board also proposed a bonus share issue of one share for every eight shares held.

HSBC Bank Malta plc slipped by 0.8 per cent or €0.02 to end the week at €2.64. The banking equity was active in all sessions, in which it shifted from negative to positive in four sessions while it closed unchanged in the mid-week session. Total trading value reached €91,618 which was dealt over 34,589 shares. Yesterday, the bank announced that it is in discussions regarding the possible sale of its card acquiring operation. Conversely, FIMBank plc shares soared by 7.5 per cent over high volumes of 425,000 shares which were traded across a single session on Friday to end the week at $0.72. Meanwhile, Lombard Bank plc closed the week flat at €2.75.

From the hoteliers sector, International Hotels Investments plc partially cancelled last week’s losses by registering a gain of 1.9 per cent to end the week at €0.815. The equity was active in four sessions were it gained 1.3 per cent and 1.1 per cent on Tuesday and Wednesday respectively. On Thursday the equity closed sideways while it declined yesterday by registering a loss of 0.5 per cent. On the contrary, Island Hotels Group Holdings plc shares tumbled by five per cent yesterday to end the week at €0.85.

Once again, Malta International Airport plc shares were among the gainers for the week, as the airport operator appreciated by a further 2.9 per cent to reach a four month high and subsequently 5.4 per cent gain year to date. The equity was active in two sessions were it closed unchanged on Monday while it advanced by 2.9 per cent yesterday to end the week at € 1.75. The other positive performer for the week was Santumas Shareholdings plc which surged by 10.5 per cent in a single session to close at €2.10.

On a negative note, GO plc continued its negative saga by incurring a further two per cent loss to end the week at €1.029. In the week a total of 69,435 shares were executed over 24 transactions. Similarly, from the I.T sector, Crimsonwing plc plunged by 11 per cent over a single session yesterday to close at €0.30. The other loser for the week was Midi plc which snapped a six per cent loss over 3,000 shares on Tuesday, while it traded flat yesterday.

The other non-movers for the week were Middlesea Insurance plc, Plaza Centres plc and RS2 Software plc which maintained their previous closing prices at €0.92, €1.80 and €0.58 respectively.

This article, which was com­­piled 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.

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