BOV shares plunge 10 per cent

It has been a negative week for the local banking sector with Bank of Valletta's, HSBC Bank Malta's and FIMBank's shares all declining in price and causing the Malta Stock Exchange Index to close three per cent lower at 4,713.26 points. The top weekly equity performer was Plaza Centres followed by Middlesea Insurance, while Go's and Malta International Airport's shares also closed in positive territory even though the gains were marginal.

A total of 374 deals were registered on the stock exchange for a turnover above €5.38 million. In the equity market 273 deals were executed for a traded value of €1.26 million, while 84 transactions were performed in local corporate bonds and government stocks for a turnover just below €3.29 million. In addition, eight deals were executed in Treasury bills for €774,094.

Bank of Valletta shares plunged 10 per cent on a week-on-week basis, having registered five consecutive negative sessions. The equity had over 100,000 shares change hands across 112 transactions with the weekly high and low prices ranging between €6.219 and €5.50. BOV's share, however, closed the week at €5.65, nearly 17 per cent down year-to-date.

Within the same sector, HSBC Bank Malta's shares lost 1.6 per cent to close at €4.65, less than half a percentage point lower, year-to-date. Activity in the equity during the week was relatively low with just above 56,000 shares being traded over 47 deals. After two consecutive positive weeks for FIMBank's shares, the equity's share price retreated US$0.02 to the US$2.00 level, this representing a one per cent drop on a weekly basis. This was attained on a volume of 35,431 shares which were negotiated over seven deals. Moreover, Lombard Bank's shares were also active; however, they closed at the same level, that of €13 having traded 3,703 shares over three trades.

Go was also active during the week edging 0.7 per cent higher to close at €3.05 as 22,451 shares were swapped across 12 deals. Middlesea Insurance advanced 1.1 per cent to the €3.70 level even though this was registered on a negligible volume of less than 300 shares. Malta International Airport moved 0.3 per cent upwards to close at €3.18 on a volume of 31,250 shares which were traded over 21 deals. Plaza Centres was, however, the week's top performer, gaining 4.1 per cent to €1.60, even though this was recorded on a single transaction of 1,640 shares.

On the other hand, International Hotel Investments saw its shares suffer a 2.9 per cent decline as 46,000 shares were negotiated across seven deals. The equity closed the week at €1.02, two per cent lower year-to-date. The other equity to close in negative territory was Crimsonwing, which shed half a percentage point on a single transaction of 2,000 shares and closed at €0.597.

Moreover, Maltapost shares were active and registered the largest volume traded. Just below 142,000 shares were transacted across 59 deals with the weekly high and low prices registered ranging between €0.668 to €0.66, before closing stable on the week at €0.665.

With regard to trading in the local bond market, the traded value in Malta Government Stocks amounted to over €2.53 million, the majority of which was recorded in the 5.4 per cent MGS 2010 which closed at €103.14. Turning to the local corporate bond sector, the 4.6 per cent HSBC € Bond 2017 was the most actively traded; however, it suffered a drop in price to close the week at €97.60.

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 JMFS at 67/3 South Street Valletta, on telephone 2122 4410 or e-mail: info@jmfs.net