Index turns positive by 1.1% on a year-to-date basis

The Malta Stock Exchange index clicked another notch higher for the fourth week in a row by registering a solid gain of 1.2 per cent to close the week at 3,128.687 points, and thus year-to-date the index is now up 1.1 per cent.

The index oscillated from positive to negative with financial equities being the primary source of stren­gth towards the broader market.

The main gainer for the week was Bank of Valletta plc which recorded a significant gain, while HSBC Bank Malta plc upheld its recent upbeat tone for the fifth consecutive week.

Conversely, both Middlesea Insurance plc and FIMBank plc closed the week in negative territory. Despite the index’s positive performance which was triggered by large caps, losers’ outperformed gainers as five declined in value, while three closed the week on a higher note.

Turnover in the week decreased further to €508,604 which was dealt on 285,169 shares traded across a total of 104 transactions.

In the Government Stock market, local investors were concerned about the stream of adverse global economic news which encouraged them to switch towards safer assets. In fact, in line with German bunds, yields of local sovereign debt declined, as fromthe 22 active stocks 14 appreciated in value, six edged lower, while two closed unchanged.

Turnover in the week decreased to €6.8 million when compared to the €23.17 million recorded in the previous week, with 61.8 per cent being traded within the short-dated 5.7% MGS 2012 issue.

In the Corporate Bonds market, turnover reached €976,844, traded over 22 issues, in which yields took diverging directions as eight closed higher, four slid lower, while 10 closed unchanged. The 7% FIMBank Eur plc 2012-2019 headed the list of gainers with an appreciation of just below two per cent.

In the equity market, banking equities were the major driving force behind the index’s sustained gain. In fact, Bank of Valletta plc shares managed to snap back last week’s 2.7 per cent loss, as its shares spiked up by five per cent or €0.10 to close the week at €2.10. The equity was the second most active asset, with total volume traded amounting to 63,777 traded over all five sessions. Monday’s session emerged as the most promising as the banking equity surged by 4.5 per cent.

Likewise, HSBC Bank Malta plc continued its recent exponential climb by registering a further 1.6 per cent gain, thus heading the list of gainers with a 12.3 per cent appreciation on a year-to-date basis. The equity had the lion’s share as total trading value amounted to €260,768 traded over three sessions to close the week at €2.895. Yesterday, after trading, the bank released its interim financial statements for 2012, where profit before tax reached €53 million, an increase of six per cent when compared to the same period in 2011.

Conversely, from the same sector, Middlesea Insurance plc shares declined by just below three per cent, a day prior to the release of its financial statements for the first six months of 2012. In the week the insurance equity was active over two sessions, in which 3,000 shares changed hands over two trades to close the week at €0.621.

The other active financial was FIMBank plc which depreciated by 1.2 per cent to close the week at $0.85, thus retreating from its $0.95 highs. A total of 7,209 shares were dealt over six transactions.

On Friday the company announced that the board of directors will be meeting on August 28 to consider and approve the financial statements for the first six months, ending June 30, 2012.

From the telecommunications sector, Go plc shaved-off 2.8 per cent from last week’s eight per cent gain to close the week at €1.05. The equity was active over four sessions in which 20,376 shares changed ownership over 12 deals. Likewise, Midi plc shares extended its recent descent by recording a loss of 3.3 per cent, thus emerging as the worst performer with a depreciation of 23.7 per cent year-to-date.

The other negative performer for the week was 6pm Holdings plc which plunged by 12.5 per cent over a single session of 1,000 shares to close at the £0.28 price level.

Finally, from the aviation industry Malta International Airport plc advanced by 1.1 per cent following two weeks of unchanged trading. The equity was active in three sessions were it gathered a gain of just below two per cent in the first two session, while it slipped by 0.8 per cent on Thursday. Total trading volume amounted to 39,550 shares which were executed across seven trades to close the week at €1.77.

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 by e-mail to [email protected].


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