Index up as financials surge
The Malta Stock Exchange index extended its streak of gains to five consecutive weeks with a further appreciation of 1.4 per cent, thus recording a gain of just shy of three per cent on a year-to-date basis.
In the week, financials offered leadership and emerged as a primary source of strength to the broader market. In fact, Bank of Valletta plc, HSBC Bank Malta plc and Lombard Bank plc managed to snap back significant percentage gains from their recent downward trend.
Furthermore, Simonds Farsons Cisk plc was stronger in the week to reach new all time highs.
Conversely, Midi plc succumbed to selling pressure once again by registering a markable loss.
Total trading for the week was based over 13 equities, in which gainers showed impetus as eight moved higher, three edged lower while the remaining two closed unchanged. Turnover escalated further to just over €1.1 million which was dealt over a total of 126 transactions which consisted of 926,245 shares.
Meanwhile, in the Government Stock Market, in line with German Bunds, local sovereign yields increased. Locally investors aimed in shifting their assets towards riskier arbitrage opportunities following encouraging news from the debt-crisis front. In fact, from the 22 active stocks 15 closed lower, four posted minimal gains, while three closed flat. Turnover in the week decreased to just over €1.8 million, in which 26 per cent were traded within the 5% MGS 2021.
In the Corporate Bonds market, yields were mixed as nine traded in positive territory, 10 closed unchanged, while four recorded scant losses. The 6.25% IHI 2017-2020 headed the list of gainers with a 1.5 per cent appreciation.
In the equity market, highly capitalised banking equities managed to halt their stream of losses. Bank of Valletta plc shares rose by 1.8 per cent or €0.04 to close the week at €2.23, after having traded at a low of €2.15. The equity was active throughout the week, having declined on Monday, closed unchanged on Tuesday, while gathering a 3.7 per cent gain in the subsequent three sessions. The banking equity had the lion’s share as total trading value amounted to €710,578 traded over 325,636 shares.
In line with its peer, HSBC Bank Malta plc managed to snap back all the losses incurred over the previous three weeks by registering a 3.7 per cent or €0.10 gain. The banking equity was active in two sessions, having closed flat in the mid-week session, while it recorded the said gain yesterday to close at €2.80.
Similarly, following seven consecutive weeks of losses, in which Lombard Bank plc plunged by 17.7 per cent, the share price managed to snap back with a 3.3 per cent gain. Activity was low and spread over three sessions in which the said gain was recorded on Tuesday to close the week at €1.88.
From the insurance sector, Middlesea Insurance plc shares added a further 3.3 per cent to their value, thus totalling to an 18.5 per cent appreciation over three weeks. A total of 3,500 shares were traded to close the week at €0.78.
Conversely, the other active financial equity, FIMBank plc, depreciated by 1.3 per cent over a single session to close the week at $0.79
Meanwhile, Go plc advanced by a further 0.9 per cent, thus rebounding back by 14.8 per cent over a three week period. The telecommunications equity was active in four sessions as it plunged by 7.2 per cent on Tuesday but managed to bounce back by gaining 8.6 per cent on Wednesday and yesterday. A total of 77,950 shares changed ownership over 17 trades to close at €0.979.
Furthermore, from the beverage industry, Simonds Farsons Cisk plc upheld their inclining position by gaining a further 2.2 per cent. The equity was active in two sessions in which 5,128 shares were traded to close the week at the €2.35 price level, thus soaring by 30.6 per cent on a year to date basis.
The other gainers for the week were Malta International Airport plc and Plaza Centres plc. The former gained a minimal 0.3 per cent yesterday to close the week at €1.735, while the latter rose by 1.7 per cent over a single trade of a mere 100 shares to close at €0.59.
On the contrary, Midi plc plummeted by 10.7 per cent on Thursday over significant volumes of 401,000 shares to close at €0.25.
The other loser for the week was Island Hotels Group Holdings plc which decline by 5.4 per cent to end the week at €0.799.
The non-movers for the week were Medserv plc and Maltapost plc which closed unchanged at €3.99 and €0.71 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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