The Malta Stock Exchange index closed the first week of the month in decline having closed yesterday's session at 3,603.56 points, hence 0.46 per cent lower on the week. The major banks disappointed again this week as both lost ground during three consecutive sessions, while activity took place across 13 equities, with four managing a gain, five equities closing in the red, and the remaining four closing flat.
The index's negative streak now tallies to three weeks. During the week under review, however, trading volume reached a high since the beginning of the year, with high volume in Maltapost reaching an impressive level for the week.
The total amount of transactions on the local exchange increased to 335 as total turnover increased for the second week in succession having reached €28.2 million. In the equity market, 193 deals were executed for a total value of €812,000 while in the Corporate Bonds market 68 transactions of €490,234 were executed. Seventy-three deals were executed in the Government Bonds Market for a total value of nearly €27 million, up from €13.6 million recorded last week.
The gains registered in the share price of Bank of Valletta plc in the initial and closing sessions of the week were not enough to make up for the losses in the other trading sessions, as the equity closed in decline for the second week running. Throughout the week trading volume increased to 47,135 shares with 49 deals having been executed. The equity traded at a high of €3.369 on Monday. However, it closed the week at €3.31, having reached a weekly low of €3.27 during Thursday's session. Hence, on the week the bank's performance dropped by 1.63 per cent.
The negative effect on the share price of HSBC Bank Malta plc brought about by last week's annual results also prevailed this week as the equity lost ground on the last three trading days. As expected, on Monday the equity traded at a gain as investors rallied to acquire the equity to be eligible to the next dividend payment. On Tuesday's session, as the shares went ex-div, the equity closed unchanged at €3.389, however losing almost €0.10 as at close of yesterday's session. In fact, the equity ended the week at €3.29, 0.3 per cent down on the week as liquidity declined to 51,050 shares over 53 deals.
Meanwhile, Maltapost plc managed to retract all of last week's losses as the equity closed yesterday's session at €0.78, having traded at a weekly high of €0.80 and a low of €0.75. Trading volume in the equity reached an impressive level this week as 410,624 shares changed hands over 43 deals. The postal operator's year-to-date performance now stands at 11.43 per cent.
On the contrary, Go plc erased all of last week's gains as the equity closed yesterday's session 0.39 per cent down at €2.29, having opened the week at €2.299, while closing unchanged across the previous four sessions, as a total of 16 deals were executed.
On a similar amount of transactions, Malta International Airport plc registered a respectable gain of 1.67 per cent or €0.05 on the week. Over 27,000 shares were transacted as the equity traded at a low of €3 and a high of €3.05, this week's closing price. Year-to-date the equity is now up 27.08 per cent.
Similar to last week, FIMBank plc was active during one trading session as 2,600 shares were traded over three deals, which left the equity unchanged at last week's price of $1.18. Conversely, Middlesea Insurance plc closed 1.33 per cent in decline as six transactions of 7,475 shares were executed, to push the equity to a price of €0.74.
From the IT sector, two equities were active during Tuesday's session as the gain of five per cent registered by Loqus Holdings plc (formerly known as Datatrak Holdings plc) was offset by the 5.66 per cent loss suffered by RS2 Software plc both over one deal, the former closing at €0.21 and the latter at €0.50, a new-all time low for the equity.
Island Hotels Group Holdings plc was active only during the opening session, having closed flat at €1.01 on one deal of 1,000 shares, while Santumas Shareholdings plc also traded unchanged on Monday as one deal of 1,500 shares was executed at €2.60. Similarly, one transaction of 4,300 shares in Grand Harbour Marina plc pushed the share price by 1.60 per cent to close the week at €1.90.
International Hotel Investments plc shares were only active on the mid-week session, as the equity closed at €0.80 having traded at €0.819 during the session. On Tuesday the company announced a €25 million Bond issue redeemable between 2017 and 2020 at a coupon rate of 6.25 per cent. The proceeds from this issue are earmarked for the five per cent IHI redemption and for the repayment in full of an existing loan facility. Preference will be given to holders of the maturing bond and shareholders and bondholders of companies falling under the umbrella of Corinthia Group.
This article, which was compiled by Jesmond Mizzi, managing director of 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 contact JMFS at 67/3, South Street, Valletta or on tel. 2122 4410 or e-mail jmizzi@jmfs.net.