FIMBank shares advance 10 per cent

The Malta Stock Exchange Index declined 1.9 per cent to 4,816.56 points during a week in which 12 equities were active, three of which closed in positive territory while five others closed in negative terrain. The two major local banks, HSBC Bank Malta and Bank of Valletta, were the equities to suffer the largest weekly decline, while FIMBank was this week's top equity performer followed by Maltapost and Crimsonwing.

A total of 580 deals were registered on the stock exchange for a turnover above €9.23 million. In the equity market 488 deals were executed for a traded value of nearly €1.4 million, while 86 transactions were performed in local corporate bonds and government stocks for a turnover just above the €7 million mark. In addition, five deals were executed in Treasury bills for €717,601.

On Tuesday afternoon FIMBank announced that the State Bank of India (SBI) intends to purchase the shareholding held by FIMBank, Malta (and two other foreign institutions) in Global Trade Finance Ltd. This helped the equity rise nearly 10 per cent to the US$1.92 level during a week in which over 140,000 were transacted across 36 deals.

Within the same sector, HSBC Bank Malta dropped 3.9 per cent on a volume of 30,745 shares which changed hands across 32 deals. The equity closed at €4.66, well below its weekly high price traded of €4.839. Activity in Bank of Valletta shares was stronger with 38,314 shares being swapped across 77 deals. However, its share price still declined by 3.7 per cent over the week to close at €6.31. Moreover, Lombard Bank saw its share price shed 0.7 per cent or 10c to close at the €13.50 level. This was, however, attained on a thin volume of 2,915 shares.

Maltapost was the most actively traded equity, having registered 50 per cent of the deals in the equity market during the week. Its shares kept increasing in price to reach the €0.655 level, equivalent to a 5.7 per cent over the previous week as 550,456 shares were negotiated over 246 transactions. On Wednesday the company also announced that GasanMamo Insurance Ltd had on January 25 exceeded the threshold of five per cent voting rights of Maltapost plc. Activity in Crimsonwing shares was also high with over 109,000 shares being traded across 17 deals, pushing its share price 5.5 per cent or 3c higher to €0.58.

On the other hand, Medserv dropped 2.6 per cent on a weekly basis to close at €4.044 on thin volume. Grand Harbour Marina shares were also active and ended in negative territory as 9,600 shares changed hands across three deals to end one per cent lower at €1.73.

The four other active equities all closed unchanged on the week. Go had 65,145 shares traded across 30 deals to close at €3.03, during a week in which its weekly high and low prices traded at were €3.05 and €3.021 respectively. Early during the week Go announced that on January 18, together with its majority shareholder Emirates International Telecommunications (Malta) Limited (EITML), it had acquired the total issued share capital of Forgendo Limited, a company registered in Cyprus. The share capital in Forgendo Ltd is split equally between Go plc and EITML.

International Hotel Investments closed at the €1 level on a volume of 115,223 shares, while Malta International Airport closed at €3.20 on a volume of 8,330 shares. Furthermore, Simonds Farsons Cisk shares also ended the week unchanged at €2.40 as 2,100 shares were transacted over three deals.

Turning onto the local bonds market, activity was once again strongest in Malta Government Stocks with the traded value amounting to over €4.87 million. Thirteen stocks were in fact traded, most of which registered price increases and with the 4.8 per cent MGS 2016 once again accounting for the majority of the traded volume recorded on the exchange. With regard to the local corporate bonds sector, activity was also relatively high with 12 bonds being traded for a total turnover amounting to over €2.17 million.

This article, which was compiled by Jesmond Mizzi Financial Services Limited (JMFS), does not intend to give investment advice and the contents therein should not be construed as such. JMFS is licensed to conduct investment services by the MFSA. 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 please contact JFMS at 67/3 South Street Valletta or on tel: 2122 4410 or email jmizzi@jmfs.net.