Financial news

Local equities closed the final session of the week on a positive note with gains in the second largest equity helping the MSE Index push higher by 0.2 per cent to terminate at 3,642 points. The bulk of the day's activity remained concentrated in the fixed interest market where institutional investors exchanged large chunks of government stocks. Bank of Valletta was the day's only gainer with the equity moving higher by 5c following a transaction of 7,865 shares, for a total market consideration of €30,823. The equity terminated yesterday's trading session at €3.95 with investors now gearing up for the company's full year results which are due to be announced towards the end of the month.

HSBC Bank Malta was the day's most liquid and actively traded equity with a grand total of 17,615 shares being exchanged across 20 transactions. The equity declined slightly earlier on in the session but fresh buying activity restored parity with the equity terminating unchanged at €3.

Lombard Bank Malta finished with an unchanged monetary value of €3 as sellers and buyers swapped 6,720 shares at Thursday's closing level. The much smaller capitalised bank published a 60 per cent increase in its interim pre-tax profits on ordinary activity in August, reported at €7.76 million.

International Hotel Investments traded steadily at its equivalent initial public offer price with 6,564 shares being swapped across four transactions, while Go similarly, terminated the day's session unchanged at €2.20 following the exchange of 4,600 shares.

All sovereign bonds attracting trades moved higher in price yesterday, particularly longer dated securities which are also the most volatile. The 6.10 per cent MGS 2015 registered the biggest monetary gain, increasing by 119 ticks on the transaction of 1,000,000 nominal, while in percentage terms the 5.20 per cent MGS 2020 topped the chart, reclaiming the €103.13 level as 4,659 nominal were swapped between two investors.

MSE weekly report

In yet another reversal of fortunes, local equities closed the week lower by five per cent, squeezing the MSE Index down to 3,642 points, its lowest close in more than three years, with banking sector equities remaining in the spotlight.

HSBC Bank Malta, the largest company by market capitalisation, closed lower by eight per cent at €3.00.

Bank of Valletta followed an almost similar trading pattern to HSBC, declining in a single session with buyers coming into the market towards the end of the week.

Nevertheless, the share price declined 8.4 per cent during the week with the price closing yesterday's session at €3.95.

Maltapost was this week's best performer gaining as much as 2.9 per cent up to the €0.844 level. Elsewhere, Grand Harbour Marina registered a positive showing, gaining 2.3 per cent to reclaim the €2.20 level.

Simonds Farsons Cisk published its interim results on Tuesday which showed a 54 per cent decrease in pre-tax profits reported at €1.5 million. The equity reacted by declining 1.2 per cent as 3,117 shares were sold at €2.60.

Elsewhere, FIMBank and International Hotel Investments declined in excess of three per cent to terminate at $1.84 and €1.00 respectively. The latter is now trading at its equivalent initial public offer price.

Crimsonwing traded steady at €0.50, while Go saw a slight decline as an aggregate 18,255 shares were transacted at or close to the €2.20 level. Lombard Bank Malta shed 1.6 per cent following the transaction of 6,800 shares at the €3.00 level.

This article has been prepared by Bank of Valletta p.l.c. (the Bank), which is licensed to conduct investment services business by the MFSA, for your general information only. This information is not a solicitation or offer by the Bank to acquire or sell securities. Nor does it constitute any form of advice by the Bank. Appropriate advice should be obtained before making any such decision. Past performance is not necessarily a guide to future performance and the value of your investments may fall or rise.