The recent string of negative week-on-week performances on the local Stock Exchange came to an end as this week the MSE index managed to gain a mere 0.3 per cent to end yesterday’s session at 2,998.034 points, after having surpassed the 3,000 points level in mid-week. On a general note, the positive sentiment was witnessed nearly across all sessions with the exception of Thursday, when the index shed almost one per cent. Year-to-date the local equity’s index is down by three per cent, which compares negatively to the huge rally being recorded in the main global indices.
Earlier this week the Eurozone finance ministers approved the second Greek bailout and, as a result, the euro traded at a 10-month high against the US dollar. Despite an initial gain, the euro then weakened on the view that several barriers remain, but regained lost ground following an unexpected rise in German business confidence.
This news pushed markets higher, as the economy seems capable of rebounding from a slowdown seen in the fourth quarter of 2011.
Likewise, US markets closed the week higher, as home sales picked up in the United States, thus also reflection an improving US economy.
Locally, the major banks together with Crimsonwing plc were the only contributors to this week’s gain. Six other equities failed to move higher while International Hotel Investments plc and RS2 Software plc closed flat. During the week, 97 transactions worth €425,000 were executed, with Go plc and IHI being heavily traded.
In the fixed-income market, a total of €7.66 million was traded. As is usually the case, bonds issued by the government were the most liquid. Government bond yields closed the week higher as all active issues, with the exception of the 5.2% MGS 2031 (I), closed the week on a negative note. This week trading also commenced in the MGSs issued earlier in the month.
Meanwhile in the Corporate Bonds Market 12 bonds managed to record price changes, while 10 ended the week flat. The 7.15% MIH 2015 – 2017 was the worst performer with a one per cent decline, while on the other hand the 6.75% Corinthia Finance maturing in April 2012, gained one per cent.
In the equity’s market, HSBC Bank Malta plc was the main supplier of upbeat sentiment as the equity experienced a gradual gain since the beginning of the week, despite a pullback on Thursday. However, the share price managed to move higher by 1.2 per cent or €0.03 to close the week at €2.59, and thus shifting the equity from red to green territory on a year-to-date basis. In fact, following yesterday’s close the equity is up by 0.43 per cent since the beginning of the year.
In a statement, seconds after close of trading yesterday, HSBC announced that profit before tax for the year ended December 31, 2011 increased by five per cent to €88 million. The directors are recommending a dividend of €0.072 gross per share, which will be paid on April 27, 2012 to all shareholders who are on the company’s shareholders’ register as at March 19, 2012.
Bank of Valletta plc managed to snap a 0.46 per cent or €0.01 gain to close at €2.18, after having traded at a low of €2.151. Trading volume declined on the week to nearly 41,000 shares but still much higher than that traded in its largest counterpart HSBC, which traded a mere 9,201 shares.
On the downside, both Lombard Bank plc and FIMBank plc failed to move in line with their peers. The former shed 0.4 per cent to end the week at €2.51 after five deals of 9,800 shares were executed. On Tuesday the bank announced that the board of directors is scheduled to meet on March 15, 2012 to consider and approve the group’s and the bank’s audited financial statements for the year ended December 31, 2011 and to consider the declaration of a final dividend.
Meanwhile, two deals of 8,500 shares in FIMBank plc reduced the price to $0.747, a decline of 0.13 per cent on the week.
Maltapost plc shed a further two per cent following last week’s announcement that the company is experiencing higher operating costs, which are impacting negatively profit levels. This week the equity closed at €0.93 hence down by seven per cent year-to-date. However, trading volume remained weak and surely not reflective of the whole market.
Go plc shares closed lower by 0.24 per cent after some intra-week price volatility. The telecoms company traded between a weekly low of €0.76 and a high of €0.83, the week’s closing price. Over 173,000 shares changed hands over 24 deals.
In the IT sector, Crimsonwing plc returned a hefty 12.5 per cent to close at €0.18, while RS Software plc traded unchanged at €0.55.
Thin trading in Malta International Airport plc and Simonds Farsons Cisk plc pushed the equities lower by 0.6 per cent and 4.4 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.
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