MSE index back to January 2010 level

Trading on the Malta Stock Exchange during the last week of January was characterised by hefty volume spread over a number of equities. Encouragingly, this heavy trading helped the MSE index to climb in almost every session of the week.

Midweek, the index reached a new high for the year, only to back off slightly by Friday. Overall, the index improved by a further 1.07% to end the week at 3,876.391 points, a level last reached in January 2010.

Over several weeks now, slight corrections in the index have been followed by upward moves. Volume is usually heavier on the upside, which is often interpreted as a bullish sign.

Similar bullish markets were also very evident over the past week in several developed countries’ equity markets. However, this was disrupted late Friday afternoon as the protests in Egypt escalated.

Out of 11 equities traded last week, seven ended Friday’s session in positive territory. However, three equities shed some value while one remained unchanged. Total value traded last week approached the €1.5 million mark, with more than 736,000 shares changing hands over 281 deals.

Trading was heaviest in International Hotel Investments plc (IHI) last week as over 250,000 shares were exchanged. Initially, the share price edged 1% lower to €0.97, which it continued to trade at until the end of the week.

However, this slight correction came about following a significant rise in the equity’s price, particularly last December. Notwithstanding last week’s fall, IHI remains 2.65% up since the start of the year.

Bank of Valletta plc (BoV) was another disappointing equity last week, an underperformer given the overall positive mood on the MSE. Volume traded in this banking equity was robust, with over 134,000 shares exchanged. Trading was spread evenly across the sessions.

An initial slight improvement was gradually eaten away in subsequent sessions, with losses gaining momentum as the week progressed. Ultimately, BoV’s share price ended the week at €3.10, or 1.12% lower.

Over the past four weeks this equity has drifted 3.6% lower, a slight retreat from the large upward move since September 2010.

HSBC Bank Malta plc’s share price moved in the opposite direction to BoV’s. The equity gained in value during the initial three trading sessions, although the gains decreased as the sessions progressed. Indeed, Friday saw a slight reversal, which only slightly erased the gains accumulated earlier.

The share price closed Friday’s session at €3.50, a 2.8% climb. Volume traded totalled a sturdy 112,644 shares. In total, this equity has advanced just over 7.5% this month.

Malta International Airport plc’s share price continues to rally week after week. The equity’s value soared 4.6% to €1.83 by Friday, once again reaching an all-time high.

MIA has already advanced by a strong 10.2% this month alone, making it the best performing equity so far this year. Volume traded was very encouraging, easily surpassing the 100,000 mark.

Go plc was one of last week’s losers, yet the loss was generally mild. The equity ended the week at €1.929, or 0.6% lower. On the other hand, Maltapost plc improved by 1% on the week, thus surpassing the €1 psychological barrier to reach an all-time high of €1.01.

Lombard Bank Malta plc was also slightly above average volume. This equity went through some significant share price volatility, with the price fluctuating between €2.60 and €2.96, at which it closed on Friday.

Lombard was the week’s best performer, rocketing by 7.64%. The equity’s improvement since October – albeit irregular – has cancelled all losses suffered since mid-June last year. In all, almost 30,000 shares were traded.

Middlesea Insurance plc, Simonds Farsons Cisk plc (SFC) and Fimbank plc all ended the week in positive territory, with SFC climbing by a whopping 7.14%. However, trading volume was moderate to low.

On the other hand, Island Hotels Group Holdings plc’s share price remained unchanged at €0.998.

A total value of €1.43 million was traded in the local corporate bond market. The best performing corporate bond was the 5.6% Global Capital plc maturing between 2014 and 2016, which rose by 2.3%.

On the other hand, the 6.25% International Hotel Investment plc bond maturing between 2015 and 2019 shed nearly 1% over the week.

Further losses were recorded in Malta Government Stocks last week, with trading volumes amounting to €1.06 million. The bulk of trading was concentrated in the 5.25% 2030 issue, one of the few stocks to make it through the week unscathed.

Last week the Treasury announced the issue of two government stocks, namely, 4.25% MGS 2017 (III) and 5.25% MGS 2030 (I) Fungibility Issue. Any combination of these two stocks shall be €120 millionin the aggregate, subject to an over-allotment option of €80 million.

The prices of each stock will be determined on February 9. Applications open on February 14 and close on February 16 for applications not exceeding €100,000, and on February 18 for applications in the form of sealed bids.

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.