Double digit gains for Middlesea, Go shares
In line with last week’s position, the Malta Stock Exchange index recorded a further gain of 0.8 per cent, thus marking a 2.6 per cent appreciation over three consecutive weeks.
Positivity loomed throughout the week with the exception of Tuesday’s session when the index slid lower by a minimal 0.14 per cent. In the week, conviction prevailed over investors’ sentiment as, from the 13 active equities, seven garnered support, four drifted lower while two closed unchanged.
Banking equities lacked confidence with Lombard Bank plc touching a new seven-year low, while HSBC Bank Malta plc extended its losses with a further decline. Conversely, Go plc repositioned itself towards higher levels, followed by Maltapost plc which continued to regain ground following the significant losses recorded throughout the past months.
Turnover in the week increased to €538,118 traded over a total of 100 transactions consisting of 345,478 shares.
Yields in the local sovereign debt diverged towards an opposite direction as headwinds from abroad conditioned investors’ sentiment. Concerns of whether Spain will demand a bailout emerged as the prime driver in shifting assets towards safer heavens. This was clearly reflected in the 10-year German Bund yields which yesterday traded at low levels of 1.4 per cent.
In line with the latter, locally, from the 21 active stocks, 18 traded higher, while three recorded scant losses. Turnover in the week decreased to just over €2.1 million.
In the Corporate Bonds market, yields were mixed as from the 23 active issues, four appreciated in value, 14 closed unchanged, while five headed southwards. The 4.25% BOV 2019 headed the list of losers with 2.2 per cent depreciation.
In the equity market, from the telecommunications sector, Go plc rebounded from the 22.7 per cent descent which commenced in the last week of July. In fact, the equity surged by 11.8 per cent over the last three sessions of the week, to re-touch the €0.95 price level. Activity was dealt over 88,000 shares which were executed across a total of 20 transactions.
Likewise, Middlesea Insurance plc emerged as the best performer of the week as its shares rallied by 16.2 per cent. Trading was dealt over low volumes of 426 shares to close the week at €0.755.
From the postal industry, Maltapost plc extended its exponential rise by registering further gains of 6.1 per cent. A total of 22,875 shares changed hands across five deals to end the week at €0.70.
From the beverage sector, Simonds Farsons Cisk plc commenced the week on a positive note by gaining a further 1.4 per cent ahead of its interim results for the six months ending July 31, 2012, which were going to be released on Wednesday.
On that day, the company announced that profit after tax for the six-month period amounted to €3.8 million compared to the €2.6 million of the same comparable period in 2011, thus a 45 per cent increase. The board of directors also resolved to distribute an interim dividend of €0.0133 per share on all ordinary shares, which will amount to a net interim dividend of €400,000. The latter will be paid out on October 19 to all shareholders who appear on the register as at the close of business on October 5.
In addition, both International Hotels Investments and Medserv plc were among the list of gainers. Following last week’s rally, the former advanced by a further 0.6 per cent, thus moving to the €0.90 price level, while the latter inclined by 1.3 per cent to close at €4.00 after trading at an intra week low of €3.94.
The other gainer for the week was Plaza Centres plc which soared by 7.4 per cent on Monday, in which a single deal of 2,000 shares pushed its share price towards the €0.58 price level.
From the banking sector, Lombard Bank plc upheld its recent negative momentum as it registered a markable decline of 4.2 per cent yesterday, thus registering a depreciation of 17.7 per cent over seven successive weeks. A total of 44,571 shares changed ownership across 15 trades to close the week at new lows of €1.82.
Also from the banking sector, HSBC Bank Malta plc shaved off a further 0.3 per cent from its value to close the week at €2.73. The equity had the lion’s share as total trading value reached €155,451 which was traded across 56,844 shares.
The other active bank, Bank of Valletta plc, closed flat at €2.265 over two sessions in which activity took place over four deals of 24,811 shares. On Thursday, the bank announced that its annual general meeting will be held on Wednesday, December 19.
Malta International Airport plc was the other non-mover for the week, as it closed flat at €1.76 over 42,500 shares which were traded across two sessions.
The other losers for the week were Santumas Shareholdings plc and Malita plc which declined by 5.6 per cent and 1.9 per cent 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 [email protected]