Mixed trends in local shares

The local stock exchange managed to halt the past weeks' downward slide to a marginal weekly loss of 0.07%. The MSE had two positive sessions on Monday and Tuesday following 13 consecutive negative sessions; however, the positive trend was quickly reversed in the following three negative sessions, with the index closing at 3,412.471 points.

The local market continues to not reflect the positive trend in international markets which had another positive week, with major indices gaining between two and four per cent.

Thirteen equities were active last week, with four gaining ground, four ending in negative territory and five equities remaining unchanged. While activity in the equity market increased compared to last week, value traded fell to €586,700.

Middlesea Insurance plc topped the list of gainers as the share price opened on Monday at a low of €0.90 and climbed to a high of €0.95 on Friday at which price it closed. This encouraging 5.56% gain was, however, backed by a volume of only just over 7,000 shares. Most trades occured in Monday's session.

Malta International Airport plc's share price gained a healthy 2.5% backed by a substantial volume of 33,930 shares. The equity was active in three sessions during which its price fluctuated between its opening weekly low of €1.60 and its closing price of €1.64.

On Friday afternoon, the company announced it had won the 2010 ACI Europe Best Airport Award, up to five million passengers' category. The award was presented to the MIA CEO last Thursday at the 20th ACI Europe annual congress.

HSBC Bank Malta plc shares managed to gain 1.81% after three consecutive negative weeks. Most of this upward move occurred on Monday, followed by two negative sessions, closing flat on Thursday, and managing another slight gain on Friday to end the week at €2.871. A total of 34,966 shares were traded at a significant fall compared to the previous week's volume of 56,980 shares.

Go plc's share price plunged a hefty 9% last week to reach a yearly low of €1.82. This decline occurred gradually during the week and a total of 23,200 shares were traded relatively evenly throughout the five sessions. The equity's year-to-date losses are now over 13%.

Last Monday was the only positive day for Bank of Valletta plc's share price last week. This was followed by a static performance on Tuesday and three successive negative performances to end the week 0.61% down at €3.25. Volume traded remained in line with last week's as just over 29,700 shares were exchanged across 36 deals. Notwithstanding last week's fall, BoV's share price remains 4.97% in positive territory.

Last week's worst-performing financial equity was Lombard Bank plc, whose share price fell 2.05% in Monday's session. Further activity on Wednesday left the share price unaltered at €2.919. A total of 8,288 shares were traded across five transactions.

A single deal of 1,500 shares in Grand Harbour Marina plc led to a 1.01% drop in the share price to €1.96. This fall also represents the equity's year-to-date loss.

RS2 Software plc gained a slight 0.19% in Tuesday's session as three transactions involving to 8,000 shares were dealt at €0.53.

Five equities' share price remained unchanged, notwithstanding heavy volume of trading in some of them. In fact, Fimbank plc shares were the most active last week with over 114,800 shares changing hands but leaving the share price at $1.01.

Activity in Maltapost plc shares closed the week unchanged at €0.90 after over 93,100 shares were traded across 14 deals.

Another non-mover was International Hotel Investments plc shares which ended the week at €0.825 after 14 deals involving 47,500 shares. Medserv plc and Simonds Farsons Cisk plc also ended the week at the previous week's closing price of €4.28 and €1.80 respectively.

Interest in local corporate bonds was apparent last week. There was over €1.05m worth of trading in over 28 issues, compared to just €277,000 traded the previous week.

On Wednesday, Mediter-ranean Investments Holdings plc announced that it was granted approval for the issue of the equivalent of €30m in euro, sterling, and US dollar bonds, subject to an over-allotment option not exceeding the equivalent of €10m. The bonds carry an interest rate of 7.15% payable annually, and are redeemable between July 23, 2015, and 2017.

The funds are mainly earmarked to finance the company's 25% equity participation in the Medina Tower project in the centre of Tripoli, Libya. The bonds constitute the general, direct, unconditional and unsecured obligations of the issuer and shall at all times rank pari passu, without any priority or preference among themselves and with other unsecured debt.

On Friday, Hotel San Antonio plc announced that it intends to buy back the company's 7.5% bonds from its bondholders. The company said this was not an early redemption. It will purchase the bonds on the open market, the total value of which will not exceed the maximum consideration of €2m.

There was a downward trend in Malta Government Stocks prices last week while value traded reached €2.3m, similar to last week.

In the Treasury Bills market there were two trades amounting to 3.3m nominal.

This article, which was compiled by Jesmond Mizzi, managing director of Jesmond Mizzi Financial Services Ltd (JMFS), does not intend to give investment advice and the contents therein should not be construed as such. JMFS is licensed 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, on Tel. 2122 4410 or e-mail jmizzi@jmfs.net.