Corporate bonds appreciate as stocks fall

Trading on the Malta Stock Exchange shifted to corporate bonds this week as 20 bonds traded across 63 transactions for a value of €536,406.

As the traded value was nearly double the previous week's value, seven bonds appreciated in value, two traded lower while 11 remained unchanged, week-on-week.

Trading in Malta government stocks totalled 37 transactions for a value traded of over €1.12 million across 20 stocks. Unlike, the performance of the corporate bonds, 14 government stocks traded lower on the week with only five registering gains.

The Malta Stock Exchange index edged 0.59 per cent higher this week, closing at 2,965.752 points as it registered the second consecutive positive week, despite being 7.5 per cent in the negative year to date.

The MSE index increased mostly yesterday, with an increase of 0.554 per cent despite gaining minimally on Monday and Tuesday. On Wednesday the index suffered its only loss of the week, a decrease of 0.063 per cent. The equity market did not register any deals on Thursday.

A total of 169 deals were registered over the week with a turnover of over €5.58 million, including seven put-through trades, for a total value of €87,655. In the equity market, 52 transactions were executed for a total value of €143,852. In the Treasury bills market a total of 10 deals were registered for a total value of over €3.68 million.

HSBC Bank Malta plc was once again the best performer from the banking sector, having increased by 1.92 per cent on the week.

These gains were registered yesterday, as the equity's share price remained unchanged on Tuesday and Wednesday. HSBC closed at €2.66, a rise of €0.05, as 9,328 shares were traded over 13 deals.

During the week, HSBC announced that the board of directors is scheduled to meet on July 31 to approve the group's and the bank's interim accounts for the half year ending June 30 and consider the declaration of an interim dividend.

The share price of Bank of Valletta plc registered a gain on the week of 0.79 per cent despite suffering a fall of 0.37 per cent yesterday.

The equity closed the week at €2.68, with a volume of 19,253 shares changed hands on 23 deals, for a total value of €51,346. The equity traded at a low of €2.63 and a high of €2.70.

Lombard Bank plc registered a loss in its share price on a single trade of 7,000 shares. The equity closed at €2.549, a decrease of €0.001, or 0.04 per cent.

Simonds Farsons Cisk plc was the only equity to remain unchanged, closing at €1.68, as 10,000 shares changed hands on a single transaction. The equity is up 3.16 per cent year to date considering the bonus shares allotted to shareholders on June 25.

For the second consecutive week, Maltapost plc was the best performing equity, although the equity traded once on Tuesday, edging almost six per cent higher on the week. Maltapost closed at €0.71, appreciating by €0.04, with 1,000 shares changing hands. In two weeks, the equity's share price year to date loss decreased from 20.42 per cent to 13.2 per cent.

After remaining unchanged last week, Go plc suffered its first weekly decline in seven weeks. Go lost 1.65 per cent, as the share price closed the week at €1.79, depreciating by €0.03, as 10,000 shares were exchanged over nine deals. The equity traded on Tuesday and Wednesday, decreasing on both days by €0.02 and €0.01 respectively.

On Tuesday, GO plc announced that Forgendo Ltd (the joint venture company between Go plc and Emirates International Telecommunications (Malta) Ltd) acquired a further 300,000 shares in Forthnet S.A. issued share capital, for a total consideration of €575,370.

Malta International Airport plc erased last week's gains of 0.48 per cent, as it decreased by 2.43 per cent. The closing price for the week was €2.05, a decline of €0.051. MIA traded only on Wednesday, as 7,200 shares changed hands on four deals.

During the week, Plaza Centres plc announced that the board of directors will be meeting on July 27 to consider and approve the company's interim financial statements for the half year ended June 30.

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.