Investors go for new bond issues

The Malta Stock Exchange Index continued its negative run, as this week it lost 3.09 per cent, closing at 2,941.592 points, dragging down the year to date loss to 8.31 per cent.

The MSE index increased only on Monday, with an increase of 0.066 per cent. On Wednesday the index suffered the highest loss of the week, with a decrease of 2.322 per cent, while on Thursday the index decreased by another 0.70 per cent. On Tuesday and yesterday the index fell by 0.3 per cent and 0.112 per cent respectively.

A total of 200 deals were registered over the week with a turnover of over €14.77 million. In the equity market 81 transactions were executed for a total value of €167,787, while in the government bond market 37 transactions were registered for a traded value of over €6.94 million. A total of 58 transactions were registered in the corporate bond market for a value of €390,326. In the Treasury bills market a total of 23 transactions were registered for a total value of over €7.27 million.

HSBC Bank Malta plc was the best performer from the banking sector, after it erased last week's losses of 1.92 per cent, having increased this week by 1.96 per cent. HSBC closed at €2.60, an increase of €0.05, having traded 11,485 shares over 15 deals. The equity was the best performer on yesterday's session, as it increased by €0.08 on a turnover of 3,380 shares.

FIMBank plc continued to lose ground this week, after a loss of 7.09 per cent. The decrease of $0.09 during the week was mainly suffered on Tuesday, with a loss of $0.088. The closing price for the week was $1.18, as the equity also decreased on Wednesday by $0.002. A volume of 7,789 shares was traded over four deals.

Bank of Valletta plc remained unchanged for the second consecutive week, although the equity had a mixed week, increasing both on Tuesday and yesterday, and decreasing on Wednesday and Thursday. BOV closed at €2.65, as 23,368 shares changed hands on 25 deals, for a total value of €61,902. The equity traded at a low of €2.63 and a high of €2.67.

Lombard Bank plc also suffered losses in its share price. The equity closed at €2.55, a decrease of €0.03, or 1.16 per cent. Lombard traded only on Thursday, with 5,000 shares changing hands on two deals.

Go plc continued its positive run this week, having increased in every session traded. Go appreciated by 3.43 per cent, closing the week at €1.81, a rise of €0.06, with 16,300 shares changing hands over 10 deals. On Thursday, Go plc announced that Forgendo Ltd (the joint venture company between Go plc and Emirates International Telecommunications (Malta) Ltd) acquired a further 1,000,000 shares in Forthnet S.A. issued share capital, for a total consideration of €1,772,350.

Once again, International Hotel Investments was the worst performer from the traded equities. IHI lost a staggering 15.88 per cent, after trading 6,280 shares across seven deals. The equity closed the week at €0.80, a decrease of €0.151.

Simonds Farsons Cisk plc depreciated by €0.05 from last week's share price. The closing price for the week was €1.80, as 1,054 shares changed hands on two deals.

Maltapost plc was one of the losers of this week. The equity closed at €0.651, with a loss of €0.059, or 8.31 per cent, as 17,974 shares were exchanged across 11 deals.

Malta International Airport plc is now on its fourth consecutive negative week. In fact, MIA traded 3,882 shares over four deals, closing the week at €2.092, a decrease of €0.008. MIA decreased on Wednesday by 0.48 per cent, but remained stable on Thursday. Yesterday the equity recovered some of Wednesday's losses, increasing by 0.1 per cent.

GlobalCapital plc traded only on Monday, closing at €1.50, and therefore remaining stable from last week, as 600 shares were exchanged.

Although trading in the equity market was low this week, investors kept financial intermediaries busy enquiring about the new bond issues.

In fact, yesterday, the Treasury announced that the total applications for the Malta Government Bond Issues reached €129 million, with the public being allotted all amounts applied for in full.

International Hotel Investments plc announced that the pre-placement agreements with financial intermediaries was concluded and was over-subscribed. Applications for the €30 million bond issue, at a coupon of 6.25 per cent per annum, maturing between 2015 and 2019, will open for the public on Tuesday, June 30.

Meanwhile, applications for the €20 million bond issue, at a coupon of 6.25 per cent per annum, maturing between 2014 and 2016, of Tumas Investments plc will open on July 3, while the pre-placement agreements with intermediaries will be placed on Wednesday.

This article which was compiled by Jesmond Mizzi Financial Services Ltd 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 contact JMFS at 67/3, South Street, Valletta or on telephone 2122 4410 or e-mail jmizzi@jmfs.net.