The Malta Stock Exchange (MSE) index moved further into positive territory last week as it closed at 3,197.387 points hence up by two per cent on the week. The local equity index moved higher for the second week running as banks together with International Hotel Investments plc (IHI) shares gave steam to more upbeat sentiment.
Nearly all active equities closed the week in the green while Middlesea Insurance plc and Simonds Farsons Cisk plc (SFC) were the only fallers.
In the banking sector HSBC Bank Malta plc headed the list of gainers while Bank of Valletta plc (BoV) continued to move higher yet at a slower pace when compared to its largest counterpart. Trading value remained more or less at the previous week level at €0.5 as 12 equities were active.
Last week happened to be the final trading week for the month of November, during which the MSE lost two per cent, following a four per cent surge back in October. Notwithstanding this decline year-to-date the local equity index is still up by 3.3 per cent.
The losses recorded by a number of large caps were the main drag on the MSE Index as IHI shares shed 7.4 per cent while BoV lost three per cent.
On the positive side Crimsonwing plc and RS2 Software plc headed the list of gainers with 20 per cent and 15 per cent gain respectively.
Improved demand for HSBC shares pushed the equity’s price higher by 3.7 per cent or €0.098 as the equity closed the week at €2.75. Trading only took place during three trading sessions with the bulk of trading taking place on Monday.
The share price of the bank kicked off the week at a weekly low of €2.67 while it gradually increased to a high of €2.76 while the final deal executed on Thursday was at €2.75.
Throughout November HSBC shares lost a mere 0.4 per cent while year-to-date it is up by 6.6 per cent. BoV shares surpassed the €2.40 level as it closed the month at €2.41 hence up by 0.6 per cent on the week.
In November BoV shares declined by three per cent, however, one has to keep in mind that the share price declined as the equity went ex-dividend half way through the month. As a result the share price adjusted to reflect the net dividend of €0.08 which will be paid on December 20, while it gained some of the lost ground in the final sessions of the month. On the year BoV shares have gained nearly nine per cent.
Meanwhile, five deals of 6,470 shares in Lombard Bank plc sent the equity higher by one per cent as the bank’s share price moved to the €1.80 level. On the other hand thin trading in Middlesea Insurance plc sent the equity lower by 5.4 per cent to the €0.70 mark on a mere transaction of 2,080 shares.
Likewise, SFC shares lost 1.2 per cent or €0.03 on similar trading volume. In fact, 2,425 shares were dealt across two deals as the equity closed the week at €2.40. Last week the company, through an interim directors’ report, said that the directors expect the financial year ending January 2013 to reflect an improvement over those registered last year.
Go plc ended another week higher this time by 1.4 per cent following a four per cent rise a week earlier. The telecoms company reached the €1.065 level and as a result ended the month of November higher by 5.6 per cent, while on a year-to-date basis Go shares are up almost nine per cent. However, trading volume remained week as 21,000 shares, down from 27,000 shares a week earlier, were dealt across 11 deals.
On a similar positive trend, IHI shares closed another week in positive territory following a 12 per cent surge the previous week. Last week the share price of the hotels operator posted a 4.8 per cent or €0.04 gain. This gain came on the back of higher trading volume which more than doubled to 34,000 shares. Month-on-month the equity lost a hefty 7.4 per cent after it surged to the €0.95 level in October.
One deal of 32,500 shares in Plaza Centres plc pushed the equity’s price higher to €0.54 thus registering a gain of 3.85%, while Malta International Airport plc (MIA) gained 1.7 per cent. Just over 30,000 MIA shares changed ownership across 11 transactions. Throughout November the shopping complex operator gained almost three per cent while MIA moved higher by 1.7 per cent.
Meanwhile, investors seem to be growing bullish on the listed IT firms as significant gains were witnessed throughout November. RS2 ended the week at the €0.69 level gaining 6.1 per cent while 6PM Holdings plc ended the month flat at £0.31 as it regained 3.3 per cent last week.
On the other hand no price movement was experiences by Crimsonwing last week despite announcing that sales revenue for the first six months of the year increased by 12 per cent to €8.7m up from €7.7m the previous year. Overall profits stood at €512,252 which compares favorable to a loss €16,997 in 2011.
In the fixed-income market a total of €24m were traded across 14 Malta Government Stock issues. The 4.6% MGS 2020 took the lion’s share as €6.5m were traded. Meanwhile, running yields closed generally lower and as a result prices creped higher as foreign equity markets remained mixed as concerns surrounding the US fiscal position loomed over markets. The winners for the week were seen at the high end of the maturity ladder as the 5.25% MGS 2030 gained 63 basis points and is now trading at just over €105. The 5.1% MGS 2029 gained 0.6 per cent to end the week at €104.5.
In the Corporate Bonds Market a total of €0.5m was traded. The 6.25% Mediterranean Bank 2015 was the most liquid issue as nearly €0.3m changed hands across nine deals. Over the week this issue lost almost two per cent as it returned to the €100 price level. On the positive side the 7% MIDI 2016 – 2018 EUR gained two per cent.
This article, which was compiled by Jesmond Mizzi, managing director of Jesmond Mizzi Financial Advisers Ltd, does not intend to give investment advice and the contents therein should not be construed as such. The company 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 Jesmond Mizzi Financial Advisers at 67, Level 3, South Street, Valletta, or on tel. 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.