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Risk aversion dominates local stock market

The Malta Stock Exchange closed the month’s final trading week minimally lower with a 0.32 per cent decline to finish the week at 3,334.039 points. In fact the MSE returned to negative territory following last week’s 0.6 per cent gain as the majority of the traded equities closed lower, with HSBC Bank Malta plc being the only gainer.

Throughout the week trading in bonds issued by the government increased by over €0.6 million to €2.05million, while activity in riskier assets declined following continuous increases in the past weeks.

In the Corporate Bond Market almost €0.8 million were traded across 67 deals, down from €1m dealt last week.

Running yields closed rather mixed this week as seven of the 22 active issues closed down, eight gained and seven closed flat.

Bonds issued by Mediterranean Investments Holdings plc were again the best performers. In fact this week two short-dated bonds, the 7.5 per cent MIH 2012 -2014 and the 7.5 per cent MIH 2015, both denominated in euro, gained 11.25 and 10 per cent respectively.

Meanwhile, the worst performer of the corporate issues was the 6.2 per cent Mizzi Organisation Finance 2016-2019, which shed 1.2 per cent to close the week at €102.50.

In the Government Stock market 21 issues were active. Yields were again mixed as nine stocks closed in negative territory, 11 gained while the latest issue of the 4.25 per cent MGS 2017 traded sideways. In summary, running yields on notes maturing in five years traded lower, the issue maturing in 10 years saw its yield edging higher while the 20-year note remained more or less flat.

The week also witnessed the end of trading for the month of June, with the MSE Index closing down by 0.7 per cent following a 0.14 per cent gain recorded during the previous month.

Throughout the month almost all active financial equities closed in negative territory while 6PM Holdings plc and RS2 Software plc recorded similar gains and were among the best performers.

Turnover in the equity market reached €313,215 over the week as 79 transactions of 156,294 shares were executed. This week the MSE was active over four trading days due to a public holiday mid-week. The local index kicked off the week’s opening two sessions on the downside but gained some of the lost ground in the final two trading sessions.

Bank of Valletta plc shares were again the most liquid although the bank experienced a sharp fall in turnover as just over €138,000 were traded, down from €0.4 million traded last week. The bank was down in the opening sessions of the week as investors eagerly awaited the outcome from the offer made by the bank on the La Valette Multi-Manager Property fund. In a statement issued after trading on Thursday, BOV announced that 94 per cent of the investors, who hold nearly 95 per cent of the shares in issue in the mentioned fund, had accepted the offer made by the bank of €0.75 per share. The bank also announced that payments of amounts due to investors would be paid by not later than Wednesday, July 6. The equity closed the week under review flat at €2.70.

Conversely HSBC emerged as the week’s only gainer as the bank posted a 0.69 per cent or €0.02 gain to finish the week at €2.92. This gain was recorded during yesterday’s session as the bank closed the previous two trading days during which it was active unchanged. However, during the month of June HSBC shares returned a negative of almost three per cent.

Low turnover in FIMBank plc shares pushed the equity’s price down by a hefty six per cent or $0.05 as the equity closed the week at $0.77. A total of 7,589 shares changed hands across two transactions.

On a more negative note, Global Capital plc suffered a whopping 50 per cent decline as one deal of just 180 shares worth €90 pushed the equity’s price lower to €0.50.

Middlesea Insurance plc also closed in the red with a two per cent or €0.02 decline as the insurance firm closed the week at €1.01 following a three per cent gain during the previous week. The equity was relatively illiquid with one deal of just 50 shares.

Go plc shares managed to close the week flat at €1.38 after having traded at a weekly low of €1.36. The equity closed all trading session unchanged as 4,179 shares were dealt in seven transactions.

On similar trading volume MaltaPost plc shares closed flat at €1.015. One deal of 4,925 shares worth almost €5,000 was executed during the closing trading session.

Two deals of 209 shares in Simonds Farsons Cisk plc pushed the equity’s price down by 1.8 per cent or €0.03 as the equity closed the week at €1.68.

Likewise Malta Inter-national Airport plc shares shed 0.58 per cent or €0.01 to end the week at €1.70. Trading volume was the highest this week as nearly 80,000 shares were dealt over 17 transactions while turnover was the second highest at €136,424.

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 [email protected].

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