There was strong demand for last week’s Malta Government Stocks issue as applications submitted by the public and financial institutions exceeded a total nominal value of €217.5 million in the fixed-rate MGS and €50m in the floating-rate MGS. A total of €84.9m was submitted for the 5.25% MGS 2030 (I) Fungibility Issue.
The authorised sum on issue was €100m, subject to an over-allotment option of €50m for the fixed-rate stocks and €30m for the floating-rate issue. Applications submitted by the public increased from €69.3m in the May issue to a total of just under €92m, and have been accepted in full.
After four weeks of gains, the Malta Stock Exchange succumbed to a slight bout of selling in the first week of August. The MSE index fell 1.31%, with irregular trading and volatility throughout the week. However, most of the loss occurred on Friday, with several equities ending the session in the red, lowering the index by over 2% in a one session. Trading volume ballooned on Friday after a single deal in Fimbank plc shares, which made up more than a third of all the week’s trading volume.
A total of 372,082 shares changed ownership during the week. Four out of the 12 traded equities lost value, three gained value, and the prices of the remaining five were unchanged. The equities losing value hold a much larger market capitalisation, and thus overshadowed the equities that gained value.
On Thursday, Fimbank Group issued a statement detailing the company’s interim financial statements for the six months ended June 30, details of which appear on page 82. On Friday, a single deal involving 150,000 Fimbank plc shares cut 2% off the company’s share price, which fell from $1 to $0.98, a new low for this year. The equity has lost nearly 11% of its traded value since end of 2009.
Last week’s second most traded equity was HSBC Bank Malta plc, with just over 51,000 shares traded in 38 deals, mostly on Monday and Tuesday. Although the equity closed unchanged at €3 week-on-week, its share price was quite volatile, oscillating between a weekly low of €2.999 and a high of €3.08. In other words, the equity spent most of the week trading in positive territory, giving up its gains only towards the final session.
On the other hand, Bank of Valletta plc managed to crawl slightly higher, ending the week at €3.28, or 0.77% higher than the previous week. However, the stock’s share price was highly volatile, fluctuating between €3.28 and €3.35. Steady trading volume bid the price higher during the first three sessions, with the final two sessions seeing some profit taking and a steady decline, albeit on very low volumes.
Notwithstanding substantial trading volume, Malta International Airport plc ended the week unchanged at €1.62 in every session last week. Just over 44,000 shares changed over 13 deals, with most trading occurring on Wednesday. On Tuesday the company announced a record high in monthly of over 400,000 passenger movements during July. The company said this result was the fruit of close co-operation with the Malta Tourism Authority as well as the input of all other stakeholders.
Lombard Bank Malta plc’s share price lost 1.06% of its value last week to close at €2.80. Volume was slightly above average as nearly 28,000 shares were traded in three sessions. However, most of this trading suppressed the share price to €2.79 with some later buying upping the price back to €2.80.
Although it closed the week unchanged, Go plc’s share price was characterised by uneasiness and volatility as it fluctuated between €1.82 and €1.90, at which it closed on Friday. Most trading occurred on Wednesday when the price fell to €1.86.
International Hotel Investments plc’s share price retreated sharply from last week’s high of €0.90, ending the week at €0.84, or 6.67% lower. Most of these losses occurred on Friday when most of the trading took place. A total of 14,100 shares were traded. Notwithstanding the correction, the equity is still 5% above the price at the end of 2009.
A minimal 5,221 shares traded in Middlesea Insurance plc resulted in an 8.30% plunge in the share price, which fell from €1.145 to €1.05. This share price correction could be the result of profit taking given the circa 65% price rise since mid-April.
Medserv plc’s share price rose 1.90% following four trades involving a total of 7,000 shares. Last week’s positive trade erases all year-to-date losses, yielding a very slight gain of 0.71% for the year.
Maltapost plc and Simonds Farsons Cisk plc remained unchanged last week at €0.90 and €1.80 respectively following minimal trading.
Following last week’s positive financial results Plaza Centres plc’s share price spiked by 7.52% to €1.63, albeit on a single trade of 1,837 shares.
Nearly €1.2m worth of local corporate bonds was traded last week, yet this trading resulted in barely any changes in bond prices. Worth noting however is the 2% gain in the 7.5% 2012 Hotel San Antonio plc bond, which climbed to €102. Almost €2.3m worth of MGS was traded last week, the bulk of which occurring in the 5% MGS 2021 issue and the 5.7% MGS 2012 issue.
Following several weeks of negative price movements, most MGS traded ended the week slightly higher, with the larger moves occurring in the 5% MGS 2021 and the 6.6% MGS 2019, both improving by 0.80% or slightly higher.
Trading in Treasury bills amount to nearly €250,000 in value.
This article, which was compiled by Jesmond Mizzi, joint managing director of Atlas JMFS Investment Services Ltd, does not intend to give investment advice and the contents therein should not be construed as such. Atlas JMFS is licensed to conduct investment services by the MFSA and is a member firm of the Malta Stock Exchange. 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 Atlas JMFS at 67/3, South Street, Valletta, or on Tel: 2122 4410 or e-mail jesmond.mizzi@atlasjmfs.com.