Positive run halted, financials decline
Following five consecutive weeks of gains the Malta Stock Exchange (MSE) Index failed to sustain its upward momentum by posting a minimal loss of 0.2 per cent to close the week at 3,179.449. As opposed to the previous week, financials emerged among the main draggers towards the broader market with HSBC Bank Malta plc and Middlesea Insurance plc registering notable declines, followed by Lombard Bank plc which moved towards the red zone following last week’s gains. Conversely, Bank of Valletta plc topped up to last week’s appreciation by adding further value, while Simonds Farsons Cisk plc touched new highs for the year.
Activity in the week was based over 11 equities, in which losers prevailed over gainers as six recorded losses, while five traded in positive territory. Turnover maintained the same level when compared to last week as total trading value amount to just over one million. A total of 960,784 shares were traded across 126 transactions.
Meanwhile, in the Government Stock Market, investors opted in trimming some of their profits following the new stock issuance which was announced yesterday morning by the Treasury. In fact, from the 22 active stocks 15 declined, six gained ground, while one closed unchanged. The Treasury announced the issuance of three stocks for a worth of €100 million with an option of a further €40 million in case of an over allotment. The three stocks are the 3.75% MGS 2017, 4.3% MGS 2022 and the 4.8% MGS 2028. The prices of the stocks shall be established on Thursday 25, 2012, late in the afternoon.
In the Corporate Bonds market, yields were mixed as from the 25 active issues, nine gained ground, 15 closed unchanged, while the 6.8% Premier Capital 2017-2020 posted a minimal loss. Conversely the 5.6% Global Capital plc 2014-2016 headed the list of gainers with a 3.6 per cent gain.
In the equity market, investors gave a cold shoulder to financials as from the four active shares; three closed the week on a negative tone.
In fact, HSBC Bank Malta plc shaved-off 1.8 per cent from the 3.3 per cent appreciation recorded in the previous week. The bank’s equity was active throughout the week as it swayed from negative to positive and back in the red to close the week at €2.75. A total of 83,172 shares changed hands across 20 transactions.
Likewise, Middlesea Insurance plc gathered a 3.9 per cent decline over three sessions to close the week at €0.75. With the incurred loss the insurance company wiped-off all the gains registered last week, thus posting a 6.3 per cent loss on a year to date basis.
The other negative financial for the week was Lombard Bank plc which trimmed 0.5 per cent from last week’s gains. The equity posted the said loss over three sessions, in which it touched new lows of €1.80, but it managed to partially recuperate most losses with a 3.9 per cent gain yesterday. A total of 53,894 shares changed ownership to close the week at €1.87.
On a positive note, Bank of Valletta plc managed to snap back the 3.3 per cent loss incurred in the first week of October, as the banking equity managed to gain a further 1.8 per cent, thus totalling to a 3.6 per cent appreciation over two consecutive weeks.
The equity experienced a relatively positive week as it clicked another notch higher in two sessions, while it closed flat in the remaining three sessions to close at the €2.27 price level. The equity had the lion’s share as total trading value amounted to €304,544. On Tuesday the company announced that the board of directors is scheduled to meet on October 26 to approve the financial statements for the year ended September 2012.
From the beverage sector, Simonds Farsons Cisk plc extended its ascending position by registering a further 2.1 per cent gain. The equity was active in two sessions as it posted the said gain on Thursday. In the following session, it closed unchanged to close the week at €2.40, thus locking a gain of just below 40 per cent from its yearly lows of €1.72 recorded in the first week of March.
Similarly, GO plc advanced by a further 1.1 per cent over two sessions to close the week at €0.99. The telecommunications equity secured the said gains over two sessions, thus posting just below 16 per cent over four successive sessions.
The other positive performers for the week were Malta International Airport plc and Santumas Shareholdings plc.
The former rose by 0.86 per cent on Monday over 6,650 shares to close at the €1.75 price level, while the latter added a scant of 0.06 per cent over a single trade of 1,690 shares to close at €1.701.
On the contrary, the worst performer for the week was Plaza Centres plc, which plunged by 13.6 per cent on Wednesday over significant volumes of 602,550 shares.
Finally, both Maltapost plc and Malita Investments plc ended the week lower, with the former shedding a minimal of 0.1 per cent in the last trading minutes of the week, while the latter declined by just below two per cent over 1,000 shares to close the week at €0.50.
This article, 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 more information contact Atlas JMFS at 67, Level 3, South Street, Valletta, or on tel: 2122 4410, or e-mail [email protected]