Uneventful week on the stock market

The MSE index barely changed its position following a trading week during which the majority of the active equities struggled to record price changes. In fact, only one equity closed the week in decline, three moved slightly higher while nine equities finished unchanged. As at close of trading yesterday, the index stood at 3,388.479 points, a gain of 0.08 per cent on the week. A positive start to the week pushed the index higher by 0.528 per cent, however four consecutive negative trading days eroded the previous gains, yet not enough to propel the index in the red.

Across the week, investors shifted their attention on the corporate bonds market as turnover gained some momentum amid expectations of new bond issues in the coming weeks. In fact on Wednesday, Mediterranean Bank plc announ-ced that the bank will be offering a five-year bond to the public carrying an interest rate of 6.25 per cent with an issue price of €100 per bond. The issue which is senior and unsecured will have an issue amount of €15 million and the proceeds of the bond issue will be utilised for the bank’s general corporate and investment purposes. The bank has applied for the bonds to be listed on the official list of the Malta Stock Exchange.

Aactivity in the other traded instruments declined significantly in the Government Stock issues. Total turnover across all traded securities amounted to €5.07 million as 267 transactions were registered. In the equity market, 239,183 shares were traded across 80 deals, for a total value of €317, 296, with the banking sector taking the lion’s share of trading. In the fixed income market €2.6 million was traded with over 2.5 million nominal exchanging hands over 185 deals. Meanwhile, one deal worth nearly €2.1 million was executed in the Treasury Bills market.

Following last week’s negative performance Malta International Airport plc shares managed to recoup some of the lost ground having gained 0.65 per cent or €0.01. The equity was the second most liquid as on the week trading volume increased to 40,630 shares dealt across 11 deals. The equity maintained its share price at €1.56 on all transactions executed.

Meanwhile, Lombard Bank plc was the only equity to close in negative territory as the banking equity lost ground on two thin trades of a meagre 511 shares. The equity closed in the red for the third week in a row, with this week’s loss amounting to 0.73 per cent or €0.02, having closed yesterday’s session at €2.73.

On the contrary, Bank of Valletta plc was the only financial equity to record a gain edging slightly higher with a 0.31 per cent gain. The equity kicked off the week on a positive note closing at €3.23 on Monday. However, the upbeat was short lived given the low volume backing this gain. The price movements throughout the week declined thereafter with the equity ending the week at €3.21. Meanwhile, turnover declined to nearly €41,000 as 12,663 shares were dealt across 15 transactions.

On similar trading volume HSBC Bank Malta plc shares closed the week flat as it traded unchanged at last week’s closing price of €2.84. A total of 18 deals of 12,935 shares worth €36,735 were executed. Throughout the week, this equity was only active during three trading sessions.

For the second week running, the most widely traded equity was FIMBank plc which recorded activity across three trading sessions. A total of 68,128 shares were dealt over six transactions, with the bulk of trading taking place in the closing session of the week. The bank started the week on a positive note, however all gains were lost in the following session to return to $0.97, the price which it maintained in the remaining session thus ending the week unchanged.

In the financial sector, Middlesea Insurance plc also closed the week flat, with each trading session closing at last week’s closing price of €1. The equity’s price barely fluctuated during the week with deals ranging from a low of €0.99 and a high of €1.005. Trading volume for the week amounted to 15,800 shares dealt across eight transactions.

Maltapost plc was the other equity to move in positive territory as three deals of 20,500 shares were executed during Thursday’s session, with a slight increase in price of 0.11 per cent to €0.90.

In the IT sector, Crimsonwing plc failed to register a change in price as one deal of 4,000 shares was executed at €0.42. Similarly Go plc shares closed unchanged at €1.89 despite having traded at a weekly low of €1.85. A total of 16,000 shares were traded over seven transactions.

International Hotel Investments plc shares also closed flat €0.83 as 31,250 shares were traded over four transactions, while three deals of 15,000 shares in Grand Harbour Marina plc were executed as the equity closed unchanged at €1.96. Meanwhile, Plaza Centres plc closed the week at €1.65 as one deal of 600 shares was traded.

In a company announcement issued yesterday prior to commencement of trading Simonds Farsons Cisk plc announced that the board of directors is scheduled to meet on September 29, to consider and approve the company’s financial statements for the six month period ending July 31, and to consider the distribution of an interim dividend. One transaction of 1,166 shares during yesterday’s session left the equity’s price intact at €1.801.

This article, which was compiled by Atlas JMFS Investment Services Limited, 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, Level 3, South Street, Valletta, or on Tel: 2122 4410, or e-mail info@atlasjmfs.com.