IHI and Go shares boost index

The Malta Stock Exchange index upheld its positive trend for the fourth week in a row by capturing a further gain of 0.2 per cent, thus totalling to a 1.5 per cent appreciation on a year-to-date basis.

Among the active large caps, International Hotels Investments plc and Go plc showed impetus, while Simonds Farsons Cisk plc managed to expand its recent rally to touch new all-time highs.

Conversely, sellers reaffirmed control over banking equities, as both Bank of Valletta plc and HSBC Bank Malta plc succumbed to selling pressure for the third consecutive week.

In the week, a total of 10 equities were active, in which gainers prevailed over losers as five closed higher, four edged lower, and one closed flat. Turnover increased further to €630,109 traded over 359,909 shares which were executed across 113 transactions.

In the Government Stock Market, yields diverged despite the encouraging comments by Mario Draghi.

The European Central Bank’s (ECB) chief stated that highly indebted countries which took harsh austerity measures are progressing in the right direction. In addition, the ECB kept main interest rates unchanged in order to initiate further economic stimulation.

Locally, investors seemed unsettled as, from the 22 active stocks, 15 closed in positive territory while seven slid lower. Turnover in the week doubled to just over €4.3m with 25 per cent of the said amount being traded within the medium dated 4.25% MGS 2017.

In the Corporate Bonds market, yields took opposite directions as, from the 17 active issues, eight moved forward, four turned negative, while five closed flat. The worst performer for the week was the 5.6% Global Capital 2014-2016 which declined by 3.5 per cent.

In the equity market, International Hotels Investments plc surged by 5.6 per cent, thus totalling a significant rise of 12.7 per cent over three weeks. The hotelier’s equity was active in three sessions in which it recorded the said gain to close the week €0.95. A total of 59,604 shares changed hands across 13 transactions.

Likewise, Go plc continued to snap back its recent losses by registering a further 2.1 per cent gain to close the week at €0.97, on modest turnover of 34,100 shares. The telecommunication equity was traded over three sessions, were it closed unchanged on Monday, while it posted gains of 0.9 per cent and 1.1 per cent on Wednesday and yesterday respectively.

Similarly, the positive mood continued to permeate among Simonds Farsons Cisk plc shares, as the equity recorded a further appreciation of 4.6 per cent on Monday. The beverage equity was active over four sessions in which nine trades of 10,211 shares were traded to close the week at €2.30.

From the I.T. sector, RS2 Software plc rallied by 15.4 per cent on Monday, following the positive news announced on the previous day. In fact, last Sunday the company announced that it has concluded a license and servicing processing agreement with a major service provider in Latin American, with a value of €5 million. A total of 12,240 shares were dealt across four deals to close the week at €0.60, thus recovering all the losses incurred over the year.

The other positive performer for the week was Maltapost plc which continued to snap back from the 32.2 per cent incurred loss which commenced in the second week of August. In fact, the postal operator gained a further 1.4 per cent, thus gaining 12.2 per cent from its yearly lows of €0.63. Total activity amounted to 52,000 shares which were executed across nine trades to close the week at the €0.71 price level.

On the contrary, Bank of Valletta plc drifted lower by a significant 3.3 per cent or €0.075. The banking equity was active throughout the week as it swayed from negative to positive to close the week at €2.19, having traded at a low of €2.141. The equity was traded over volumes of 111,050 shares which were dealt across 49 deals. On Wednesday, the company announced that the European Banking Authority released a report in which it stated that the bank is currently enjoying a strong Core Equity Tier 1 ratio of 10.6 per cent, which is above the required minimum of nine per cent required by European regulation.

In line with its peer, HSBC Bank Malta plc declined by 1.1 per cent over three sessions. The equity commenced the week on a sour note by registering a markable loss, which it partially managed to recover by gaining 0.7 per cent in the subsequent session. However, it than erased that gain on Friday to close the week at €2.70. Turnover was just shy of 42,000 shares.

Furthermore, Malta International Airport plc failed to sustain its recent gains by posting a 1.7 per cent loss on Tuesday to close at the €1.73 price level. Yesterday the company announced its traffic results for the month of September, in which it stated that passenger movements reached 407,917, thus registering a sixth consecutive record month. In addition, when compared to the same period last year, the increase is equivalent to 6.6 per cent.

The other loser for the week was Medserv plc which headed southwards by 0.3 per cent yesterday to close at €3.99 on a turnover of 25,000 share.

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 info@atlasjmfs.com.