IHI shares boosts index

The Malta Stock Exchange index upheld its positivity by registering a significant gain of 1.2 per cent to end the week at 3,111.798 points, thus turning positive on a year-to-date basis.

Following the shortened week due to yesterday’s National holiday, the index displayed strength in the first session of the week, while it swayed from negative to positive in the subsequent sessions. As opposed to the previous week banking equities which succumbed to selling pressure with Lombard Bank plc touching a new seven year low, while Bank of Valletta plc and HSBC Bank Malta plc closed the week lower by recording scant losses.

Conversely, International Hotels Investments plc outperformed with a notable gain, while Simonds Farsons Cisk plc reached new highs over relatively low volumes.

Throughout the week investors maintained a positive attitude, as from the 12 active equities six appreciated in value, four drifted lower, while two closed flat. Total turnover for the week declined to €479,665 traded over 93 transactions which were dealt across 491,482 shares.

Following last week’s announcement of further quantitative easing by the United States Federal Reserve, in line with German Bunds, local sovereign debt yields drifted lower as investors were comforted with the announced monetary policy. In fact, from the 15 active stocks, 11 edged lower, while four posted minimal gains. Turnover in the week increased to just over €3.2 million, with the long-dated 5.2% MGS 2020 being the most liquid as total trading value reached just over €1.1 million.

In the Corporate Bonds market, yields took diverging directions as, from the 22 active issues, nine gained ground, five closed lower, while eight closed unchanged. The 4% AX Investments 2013 headed the list of gainer with a 2.3 per cent gain.

In the equity market, International Hotels Investments plc shares surged by 6.6 per cent or €0.055 to close the week at €0.895. The hoteliers’ equity was active in two sessions gathering a seven per cent appreciation on Monday, while it shaved-off a minimal of 0.6 per cent on Wednesday. A total of 90,465 shares changed ownership across 14 trades. Likewise, from the beverage sector, Simonds Farsons Cisk plc continued to climb exponentially by registering a further gain of 3.3 per cent. The equity commenced trading on Tuesday where it gained just below one per cent, while it gathered a total of 2.4 per cent over the following two session to close the week at €2.17, thus paving the way to a 20.6 per cent gain on a year-to-date basis.

Meanwhile, on Tuesday the company announced that the board of directors is scheduled to meet on September 26, to consider and approve the financial statements for the six-month period ending July 31.

Conversely, from the financial sector, both Bank of Valletta plc and HSBC Bank Malta plc closed the week into lower grounds. The former surrendered 0.5 per cent from last week’s appreciation to close at €2.265 over 19,835 shares, while the latter slipped by a mere of 0.04 per cent across six trades of 22,900 in volume to end the week at the €2.739 price level.

Similarly, Lombard Bank plc retained it recent negative saga for the fifth consecutive week with a further descent of 1.6 per cent. The banking equity recorded the loss on Thursday, in which 4,500 shares were traded across three deals to close the week at €1.90.

The other active financial was Middlesea plc, which following two weeks of inactivity returned to trading with a 2.4 per cent rise over a single session to close at €0.65.

From the telecommunications sector, Go plc equally cancelled last week’s gain by recording a loss of 0.6 per cent. The equity had the lion’s share as total trading volume totalling 132,025 shares to close at €0.85 after trading at an intra-week low of €0.82.

On a positive note from the postal industry, Maltapost plc extended its recent upward momentum by gaining 3.1 per cent and closing the week at €0.63, thus snapping back 4.7 per cent over two weeks from its lows of €0.63 recorded in the last week of August. Furthermore, Malta International Airport plc clicked another notch higher by posting a minimal gain of 0.06 per cent. The equity was active over 64,836 shares to close the week at €1.76.

In addition, enjoying a strong week was RS2 Software plc which rose by four per cent on Thursday on 24,507 shares and thus moving back to the €0.52 level.

Meanwhile, the non-movers for the week were Midi plc and Malita Investments plc which closed at €0.28 and €0.52 respectively.

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.

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