Following four consecutive weeks of losses, the Malta Stock Exchange index managed to reposition itself in positive territory to close the week at 3,049.279 points, up 0.71 per cent.
Throughout the week the index showed impetus as it traded higher in four out of five sessions, with the mid-week session emerging as the main driver for appreciation by 0.72 per cent.
This week banks were in the limelight. Bank of Valletta plc secured last week’s gains with a markable appreciation. HSBC Bank Malta plc, Lombard Bank plc and FIMBank plc closed lower as sellers reaffirmed control.
The week was characterised by nine equities being active, in which for the second week in a row losers prevailed over gainers. Four slid lower, two gained ground and three closed unchanged. Total turnover for the week amounted to €376,267 traded over a total of 303,028 shares, executed across 94 transactions.
In the Malta Government Stock market, as the European turmoil eased a number of investors tended to shift their assets towards riskier zones, while others upheld their cautious position. Similarly the MGSs had a mixed week as out of the 22 active stocks, 11 appreciated in value, 10 drifted lower, while one closed unchanged. The medium-dated 6.1% MGS 2015 issue was the most liquid issue as total trading value amounted to €3.7 million. Meanwhile, turnover for the week amounted to €17.1 million.
In the Corporate Bonds market running yields opted for opposing positions. Of the 13 active issues four traded in positive territory, six edged lower and three closed flat. The 7.15% MIH 2015-2017 headed the list of gainers with 1.3 per cent.
In the equity market, Bank of Valletta plc shares were the only gainers among banking equities. The bank drove the index towards a positive end to the week, with a significant gain of 5.7 per cent. The equity experienced positive momentum through the week as it traded higher in four sessions and registered a loss of 1.9 per cent on Tuesday. The banking equity had the lion’s share with total trading value at €154,389 executed over 71,367 shares to close at the €2.22 price level. Conversely, HSBC Bank Malta plc upheld its streak of losses to five weeks in a row with a further decline of 0.3 per cent, thus re-touching the €2.64 level. The equity was active in four sessions, closing lower in one, posting a gain on Wednesday and closing flat in the next two sessions. A total of 12,352 shares changed hands across eight transactions.
In line with the latter’s footsteps, Lombard Bank plc shares plummeted by just below seven per cent or €0.15 to close the week at €2.00, heading the list of losers on a year-to-date basis with a 25.9 per cent decline. On Thursday the company announced its results for the first six months ended June 30, 2012. It was noted that the Group’s profit before tax reached €4.3 million when compared to €7 million reached in 2011, thus a decrease of 38 per cent, while pre-tax profit of Lombard Bank amounted to €4.9 million when compared to the €6.2 million in 2011, a decrease of 21 per cent.
The other active banking equity was FIMBank plc which recorded a loss of 3.6 per cent over a single session of 3,000 shares to close at $0.80.
From the telecommunications sector, Go plc continued to wipe out the gains recorded earlier in the year with a further decline of three per cent to close at €0.99. The equity traded lower in the first and last sessions of the week and closed unchanged on Wednesday and Thursday. Total turnover amounted to 71,070 shares over 19 trades.
On a positive note, Simonds Farsons Cisk plc clicked another notch higher by gaining a further one per cent. The beverage equity was active in one session in which 5,492 shares changed ownership to close at €2.05, thus enhancing its year-to-date performance to just below 14 per cent.
Meanwhile, both Malta Inter-national Airport plc and RS2 Software plc closed the week unchanged. The former closed the week flat at €1.74 over 17,700 shares, while the latter maintained the €0.50 price level over a significant volume of 111,267 shares, traded in two sessions over six deals.
The other non-mover for the week was Malita Investments plc which closed at €0.52 over a single deal of 2,000 shares.
International Hotels Investments plc yesterday announced its financial statements for the first six months ended June 30, 2012. The company registered a loss before tax of €12.6 million, compared to a loss of €14.6 million registered in the same period in 2011. Furthermore, it was noted that revenue improved to €56.4 million, a rise of 16.08 per cent from 2011, of which 5.6 per cent accounted from the Marina Hotel which was acquired earlier in 2012, while 10.4 per cent were contributed by Corinthia Hotel St Petersburg, Corinthia Hotel Tripoli and CHI Limited, the Group operating arm.
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.