Lacklustre week on the MSE

Activity on the Malta Stock Exchange was fairly unremarkable last week, with lower volume of shares traded and a lack of any major moves in most equity prices. Such inaction was also very much the case in most foreign equity markets, possibly taking a pause following a two-week steady climb.

The MSE index began the week with a slight jump on Monday which, however, was gradually eaten away, with the trading week progressing uneventfully. Nevertheless, the string of losing sessions failed to completely nullify the initial gain, with the index ending the week with a slight gain of 0.08%.

Volume was notably lower than the previous week, with trading in the two major banks reduced to a fraction of their usual average trading amounts. Thirteen companies’ shares were traded last week yet only four recorded a change in price. Three equities edged slightly higher while one lost a little value. The prices of the rest remained unchanged from the previous week.

Fimbank plc was once again the most traded equity on the MSE last week. Just over 68,000 shares were exchanged in three trading sessions, mostly on Friday. On Monday the share price was bid up from $0.97 to $1 on very low volume, yet a similar amount of shares traded on Wednesday nullified this gain. The bulk of trading occurred on Friday but left the share price intact at $0.97.

Trading in Malta International Airport plc shares was quite active last week, with 40,630 shares dealt across 11 transactions. The equity price ended the week at €1.56, or 0.65% higher.

Similarly, International Hotel Investments plc’s share price climbed 1.2% on Monday, only to be reversed the following day on much lower volume. A total of 31,250 shares were traded, most of which backed the upward move.

Maltapost plc’s share price last week climbed a minimal 0.11% to re-touch its all-time high of €0.90. A total of 20,500 shares were traded in three deals on Thursday.

A total of nearly 16,000 shares in both Go plc and Middlesea Insurance plc (MSI) were traded last week. Trading in Go was concentrated in one session while trading in MSI shares was much more spread out. Both companies closed the week unchanged at €1.89 and €1 respectively, with no attempts to change prices in any direction.

A total of 15,000 Grand Harbour Marina plc shares were traded last week at the previous week’s closing price of €1.96. This trading volume is slightly above average for this stock given the lack of activity and sporadic trading characteristic of this equity.

Bank of Valletta plc and HSBC Bank Malta plc both failed to surpass 13,000 traded shares last week, thus sharply reducing the total volume of trading in the equity sector. HSBC’s share price traded constantly at €2.84. By contrast, BoV’s share price initially climbed nearly 1% to €3.23 on Monday, and reached a high of €3.24 on Tuesday, but subsequent trading eroded some of this gain with the equity price closing the week 0.31% higher at €3.21.

Slight volume in Crimsonwing plc, Plaza Centres plc, and Simonds Farsons Cisk plc (SFC) left their respective share prices unchanged. On the other hand, two deals involving a mere 511 shares lowered Lombard Bank plc’s price to €2.73, a drop of 0.73%.

SFC announced last week that its board of directors is scheduled to meet on September 29 to consider and approve the company’s half-yearly financial statements and consider the distribution of an interim dividend.

In an interim directors’ statement on Thursday Island Hotels Group Holdings plc said that on the hotel side of the business, revenues exceeded expectations, reflecting increased arrivals to the island. However, end-of-year results overall are expected to show a fall on last year due to a drop in overall vacation ownership sales, increased finance costs and pressures on general costs.

A total of €0.74 million worth of local corporate bonds was traded last week. Unlike the equity market, the prices of several bonds changed, with overall mixed performances. The largest price rise was that of the 7% Fimbank USD bond maturing between 2012-2019, which rose by nearly 2% from $104 to $106. Conversely, the 6.75% United Finance euro bond maturing between 2014 and 2016 lost nearly 1% to close at €101.

Last week, Eden Finance plc announced that it intends redeeming its outstanding 6.7% Eden Finance 2010 bonds on October 12. The last trading date for the bond was last Friday.

Also last week, Mediterranean Bank plc announced an offering to the public of a five-year bond in the amount of €15 million. The bonds bear an interest rate of 6.25% and have a nominal value and issue price of €100 per bond. The bonds are senior and unsecured. Copies of the prospectus and application forms will be available from tomorrow.

Trading in Malta Government Stocks moderated significantly last week, with a total value of only €1.9m, a far cry from the large amounts traded over the previous weeks. With yields internationally continuing to rise following the sharp falls earlier in the summer, government bond prices traded lower, eroding most of the previous gains achieved till the end of August. The longer term MGSs continue to be the most widely traded and with the largest price volatility.

Trading in Treasury bills on the secondary market amounted to nearly €2.1m last week.

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.