Following four consecutive weeks of declines the Malta Stock Exchange index returned to trade in positive ground with a gain of 1.2 per cent to end the week at 3,114.572 points. Solid gains by highly capitalised banking equities proved to be a key determinant in the direction of the broader market as the index recorded gains in the first three sessions of the week, while it lost ground yesterday following Thursday’s national holiday when the market was closed. Turnover during the week decreased to €194,870 traded across eight equities with gainers outperforming losers, as six companies appreciated in value, one edged lower and the other closed unchanged. Total trading volume this week amounted to 81,136 shares traded across 76 transactions.
In the Government Stock Market turnover registered a further decrease, as total trading volume reached just over 5.1 million traded across 17 issues. The negative news which was reported on Wednesday that Moody’s has reclassified Malta’s foreign and local-currency government bond rating from A1 to A2 seemed to have unimpressed investors’ confidence, as from the 17 active issues 12 appreciated in value and five recorded minimal losses. The 3.75% MGS 2015 short-dated bond headed the list of gainers as it appreciated by 1.12 per cent.
Meanwhile in the Corporate Bond Market, running yields took dissimilar directions, as from the 23 active issues 11 closed higher, four edged lower and eight closed flat. For the second week in a row the 7.15% Mediterranean Investments Holding plc GBP 2015-2017 was the best performer as it gained 2.6 per cent, while the negative on the week was the 7% FIMBank plc Eur 2012-2019 which slipped by 1.4 per cent.
In the Equity Market, after last week’s gains, banking equities continued their recent recovery as three of the four banks recorded gains with Bank of Valletta plc finishing markedly higher and FIMBank plc trading flat at USD0.77 on a mere 1,400 shares following weeks of inactivity.
BOV’s share price appreciated by a strong 2.8 per cent or €0.07 with gradual gains in all sessions to end the week at €2.59 as the equity was the most liquid this week as 31,682 shares changed ownership across 34 transactions.
Similarly, HSBC Bank Malta plc maintained its positive trend as the bank snapped a 1.1 per cent gain over 21 trades of 22,756 shares. HSBC traded in positive territory in the first three sessions with Tuesday being marked as the best session, as the equity posted a 1.45 per cent gain which was then reverted yesterday to end the week at €2.70. The other active banking equity for the week, Lombard Bank plc moved in similar direction as it advanced by 0.8 per cent or €0.02 to end the week at €2.70. Yesterday the bank announced that Graham Fairclough has been appointed non-executive director of the bank with effect from August 23, 2011.
From the hoteliers sector, Island Hotels Group Holdings plc was logged as the best performer, as the hotel operator surged by 5.29 per cent to end the week at €0.895 over thin trading of 100 shares. On Wednesday the company announced that it reached an agreement for the acquisition of 50 per cent of the share capital of Buttigieg Holdings Limited. Another gainer for the week was Middlesea Insurance plc which recorded a gain 1.22 per cent over a single session to end the session €0.911.
Furthermore, Malta International Airport plc gained 1.3 per cent or €0.0.2 across 13,370 shares which were executed over nine transactions. Tuesday was marked as the winning strike for the airport operator as its share price rose to €1.54 which it than maintained in the following sessions. On Monday the company announced that passenger movements in August almost reached the all-time monthly record of last year and totalled 427,575. In absolute terms, a mere 349 passenger decrease or 0.1 per cent decline when compared to the same month last year. During the month, seat capacity reached 499,086, thus a decrease of seven per cent compared to the same month last year. In contrast, the only loser for the week came from the beverage sector, as Simonds Farsons Cisk plc slipped by a minimal 0.3 per cent over a single session to end the week at €1.795.
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.
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