The Malta Stock Exchange (MSE) index closed the first week of December in the red after gaining substantially in the previous two weeks. The index shed 0.6 per cent to end the week at 3,178.465 points after passing the 3,200 points level early in the week.
The two major banks and International Hotel Investments plc (IHI) were the main contributors to last week’s fall. Investors barely took note of these price declines as most of the other active equities rose. Maltapost plc headed the list of gainers following Tuesday’s announcement of its full year results.
Trading volume in the equity market improved to €600,000 up from €500,000 a week earlier as 106 deals were traded in 14 equities. Bank of Valletta plc (BoV) was the most liquid issue by value while IHI followed in what was a horrid week for the equity.
In the banking sector, HSBC Bank Malta plc was the heaviest faller with a one per cent drop as activity shrunk. Three transactions of 13,000 shares were executed at €2.72. Nevertheless the bank’s share price is still up by 5.5 per cent since January.
Likewise, BoV lost 0.4 per cent after the equity traded between a weekly high of €2.429 and a low of €2.38 while the final deal of the week was executed at €2.405. There were a total of 38 deals worth almost €173,000. The bank will pay a net dividend of €0.08 per share on December 20, to shareholders who appeared on the bank’s list of shareholders as at close of business on November 19, 2012.
On the other hand, Fimbank plc was the only banking equity to close the week in positive territory as the share price of the finance trade specialist rose by a whopping 6.4 per cent, or $0.05. But last week’s gain came on the back of insignificant trading volume as just 3,000 shares changed hands in one deal. As a result of this gain the equity’s performance since January is up by almost eight per cent.
Middlesea Insurance plc also posted a noteworthy gain of 5.7 per cent, or €0.04; but trading volume was weak and unrepresentative of the broader market. In fact, less than 3,000 shares were traded in two deals.
Meanwhile, IHI shares shed a hefty 5.7 per cent, or €0.05, to end the week at €0.83. The hotels operator fell slightly mid-week on insignificant volume, but it lost 4.6 per cent on Thursday on a sharp rise in volume. Throughout the week a total of 153,000 shares were traded in 11 deals worth €113,000 as the equity was the second most active.
On a positive note, Go plc shares ended another week in positive territory as the telecoms operator reached a five-month high at €1.11 after trading at an intra-week low of €1.065. Last week’s gain came over a slight pick-up in turnover as over €37,000 was traded in 20 deals. Since January the equity has returned a positive 13.3 per cent and is now among the top-performing equities and significantly surpassing the MSE index.
Likewise last week, Maltapost plc shares closed the week in the limelight as the share price surged 15.4 per cent, or €0.12, to end at €0.90.
This rise came despite a fall in the company’s revenue and profits for the period ended September 30. In fact, revenue declined 1.3 per cent to over €21 million while pre-tax profits fell by 32.3 per cent to €2.1 million. Moreover operating expenses rose to just over €19 million which arose mainly due to changes imposed by the Universal Postal Union.
A net dividend of €0.04 will be paid on January 17, 2013, to all shareholders who appeared on the company’s list of shareholders as at close of business last Thursday, subject to approval by shareholders.
The directors expect the company’s performance to improve during the current financial year after it was allowed to raise its postal tariffs. They also announced that a new subsidiary will be set up to enter the insurance market.
During last Friday’s session, Simonds Farsons Cisk plc shares gained 4.2 per cent or €0.10 as the equity ended the week at an all-time high of €2.50. A total of 18,000 shares were traded in three deals. Similarly, Medserv plc gained 2.6 per cent, or €0.10, as the equity closed at €3.95. One thin trade of 3,000 shares was executed.
On the other hand, Malta International Airport plc shares edged minimally lower to €1.796 as four small trades were executed. Last Wednesday the airport operator announced the traffic results for November, which showed passenger movements reaching a new high for the month of November. For the first 11 months of the year passenger movements increased by 3.7 per cent compared to the same period last year.
Both seat capacity and aircraft movements also improved over the corresponding month last year. The UK remained the top arrival destination despite a slight decrease compare to corresponding month last year, followed by Italy and Germany.
Tech companies closed another week on a high, led by Crimsonwing plc, which gained 9.5 per cent, or €0.04, to close the week at €0.46. Turnover reached nearly €50,000 as 110,500 shares were traded in 10 transactions. RS2 Software plc managed a 1.5 per cent gain as the share price reached €0.70.
Meanwhile, both Midi plc and Plaza Centres plc traded flat at €0.25 and €0.54 respectively. A total of 92,000 Plaza shares were traded on Tuesday.
In the Malta Government Stock market, running yields closed rather mixed yet price changes were minimal. Across the short-dated issues, yields improved while prices rose across the longer-dated issues as investors sought better yields than those offered by the short-dated issues.
The 4.8 per cent MGS 2028 gained 50 basis points to €103.49 while the 5.25 per cent MGS 2030 gained 0.2 per cent to €105.31. Trading value in this sector reached €10.8 million.
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.