The Malta Stock Exchange (MSE) index ended last week marginally in the red as the share price of the two major banks together and three other equities declined. Last week the local index was active across four trading sessions due to a public holiday on Thursday, yet trading value soared to €0.9m up from €0.6m a week earlier.

As is usually the case Bank of Valletta plc was the most active equity as over €0.4m was traded, more than double that traded in Lombard Bank plc which was the second most liquid equity. Last week the MSE lost a mere 0.4 per cent at 3,166.984 points after having started the week on the wrong foot while it recouped some of the lost ground on Wednesday and during the final trading session.

Last week 17 of the 22 listed equities were active as six gained, another six closed flat while five headed downwards. The banking sector was the main contributor to this week’s decline while International Hotel Investments plc managed to regain part of the fall recorded during the previous week. Across all listed equities a total of 642,000 shares were traded over 112 transactions.

In the banking sector BoV shares lost 2.3 per cent or €0.045 as the equity ended the week at €2.35 after trading at a weekly high of €2.405 and a low of €2.345. Trading volume was more or less equally spread in the first three sessions however on Friday activity jumped to almost 97,000 shares dealt across 12 transactions. Despite this week’s decline the share price of BoV is still up by 5.8 per cent on a year-to-date basis.

Likewise, HSBC Bank Malta plc ended the week southwards after the share price of the bank shed 1.8 per cent or €0.05 as it closed the week’s final trading session at €2.67. Trading volume declined even further as 9,600 HSBC shares were dealt over nine deals worth €26,000. Given the lack of demand investors were forced to accept lower bids and in fact the equity closed lower on the opening two sessions while it closed unchanged mid-week. No further transactions were recorded thereafter. Not withstanding this fall, since the beginning of the year HSBC shares are still up by 3.5 per cent.

On the positive side Lombard Bank plc posted a 2.2 per cent gain or €0.04 as the bank’s share price closed the week at €1.84. Initially the equity’s price barely changed. However, on Friday the equity moved higher by 2.2 per cent over a significant increase in trading volume. In fact the positive thing about last week’s gain is that throughout the week a total of 108,000 shares were traded, up from 6,500 shares a week earlier.

Conversely Fimbank plc shares lost 3.6 per cent or $0.03 to end the week at $0.80 after trading at a weekly high of $0.83. However, trading volume reached only 9,000 shares dealt across three transactions on Tuesday.

Similarly Medserv plc shares ended the week lower by 0.3 per cent at €3.94 as just one deal of 2,000 shares was executed.

Maltapost plc shares failed to uphold the previous week’s hefty gain of 15.4 per cent after the share price of the postal operator shed 5.6 per cent or €0.05. A total of 21,000 shares, spread equally over two trading days, were dealt across eight transactions as the first deal was executed at €0.85 a level which the equity maintained throughout the week. Since the beginning of the year Maltapost shares are down by 15 per cent.

IHI shares posted a 3.6 per cent or €0.03 gain following a sharp 5.7 per cent gain a week earlier. The equity which was traded across two sessions reached the €0.85 level on Tuesday as 11,500 shares changed ownership, while it gained further ground mid-week to end the week at €0.86. A total of 21,500 shares were dealt, significantly lower than the 153,000 shares traded the previous week. Since the beginning of the year IHI shares are up by two per cent.

Go plc edged minimally higher to €1.12 after touching an intra-week low of €1.08 as 16 deals worth €53,000 were executed. Meanwhile, three deals of 9,517 shares in Simonds Farsons Cisk plc left the equity’s price intact at the €2.50 level while Grand Harbour Marina plc traded flat at €1.81 over thin trading.

In the IT sector RS2 Software plc jumped 3.6 per cent or €0.025 to end the week at €0.725 over improving volumes. In fact 83,700 shares were traded across three transactions. On the other hand both 6PM Holdings plc and Crimsonwing plc traded flat at £0.31 and €0.46 respectively.

Malta International Airport plc shares gained a mere 0.2 per cent to end the week at €1.80 while Midi plc soared by eight per cent as three deals of 83,700 shares were executed. Meanwhile, Plaza Centres plc traded flat at €0.54 over one deal of 3,300 shares while on similar trading volume Malita Investments plc closed unchanged at €0.50.

In the fixed-income market a total of 100 deals worth €9.6m were posted. As expected the Malta Government Stock (MGS) market took the lion’s share given the significant liquidity available in this market. In fact almost €9m was dealt across 16 MGS issues. The short-dated 5.9% MGS 2015 was the most liquid while the recently issued 4.8% MGS 2028 followed. On a general note yields improved after the Central Bank of Malta revised bid prices lower as yields on German Bunds rose. Over the week the 4.8% MGS 2028 lost 130 basis points as it closed the week at €102.15 and is now yielding 4.6 per cent. Conversely the 5.2% MGS 2031 gained 50 basis points as investors hunted for higher yields.

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 infor-mation contact Jesmond Mizzi Financial Advisers at 67, Level 3, South Street, Valletta, or on tel. 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.

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