The Malta Stock Exchange (MSE) index started the year on a positive note, ending the first week of trading 1.2 per cent higher to close just shy of 3,250 points. For the second week running, none of the active equities fell in value – seven equities gained while another four ended the week flat.

Last week the MSE was active in two trading sessions due to the post-Christmas holidays. During the two sessions a total of 84 transactions worth nearly €300,000 were executed.

Bank of Valletta plc (BoV) opened the year where it ended 2012 – the most active equity both by value and volume. In fact, the value transacted in the bank’s equity was more than fivefold that traded in its larger peer, HSBC Bank Malta plc, which was the second most liquid last week. Both banks gained while Lombard Bank plc failed to move in line with its peers.

In the IT sector, local investors remained bullish as two equities, headed by Crimsonwing plc, gained further ground, while 6PM Holdings plc traded flat following an uneventful week.

Abroad, foreign equity markets kicked off the year on a positive note after the US averted $600 billion of tax increases and spending cuts, thereby easing the risk of a slowdown in the world’s largest economy. Risky assets gained while the euro retreated somewhat against the safer US dollar.

Moreover, Chinese data releas­ed last week indicated that recovery in the region’s largest economy may be gathering mo­­men­tum. In fact, a non-manufacturing purchasing managers’ index (PMI) reached a five-month high in December while manufacturing PMI remained flat, but at the highest level since April 2012.

Sentiment improved further on Friday after US data showed that employers added workers in December at more or less the same rate as in November, despite the fiscal cliff debate which loomed over markets.

All in all, it was a good week as clearly indicated by the performance of most indices. In Germany the DAX gained 2.2 per cent, the FTSE 100 in the UK rose by 2.8 per cent, while in the US the S&P 500 gained 4.6 per cent.

Back to local equities, in the banking sector HSBC kicked off the year with a 3.3 per cent, or €0.09 gain as the bank’s share price rose to €2.79. However, trading volume totalled 11,400 shares spread evenly between two sessions as 14 deals worth €31,000 were recorded. During the week the equity also touched a weekly low of €2.68 before settling at the week’s closing price.

BoV shares gained 0.4 per cent to close the week at €2.425 after trading at a weekly high of €2.435. The bank’s share price gained 0.6 per cent on Thursday, but in the week’s last trading session the equity lost 0.2 per cent over declining volumes. A total of 65,000 BoV shares changed hands in 35 deals worth €158,000.

Investors should note that shareholders who appear on the bank’s list of shareholders as at close of business on January 14 will be entitled to a bonus issue of one share for every nine already held.

Meanwhile, Lombard Bank plc shares failed to move higher after the equity traded flat at €1.86 in three deals of 3,000 shares.

On Thursday the bank announced that its board of directors is scheduled to meet on March 14 to approve the group’s and the bank’s final audited financial statements for the year ended December 31, 2012, and to consider the declaration of a final dividend to be recommended to the bank’s annual general meeting. The bank’s AGM is expected to be held on April 25.

In the IT sector Crimsonwing plc’s share price jumped 10.2 per cent, or €0.05, to reach €0.54. A total of 36,000 shares were traded in three deals worth €19,000, the bulk of which took place in Thursday’s session.

RS2 Software plc also gained but at a much slower pace as the equity posted a 1.4 per cent gain to end the year’s first trading week at €0.75. 6PM Holdings plc traded flat at £0.31.

Go plc edged minimally higher as the telecoms company ended the week just shy of €1.20. Last week a total of 19,000 Go shares were traded in 10 deals as the equity’s price hovered between a weekly low of €1.17 and a high of €1.20 before closing at €1.195.

Investors are still awaiting the company’s decision with regard to the rights issue which Forthnet, the Greek subsidiary in which Go holds a stake through Forgendo, intends to issue.

Following an uneventful week Maltapost plc shares traded unchanged at last year’s close of €0.85 while Malita Investments plc gained two per cent to end the week at €0.51. A total of 17,000 shares changed ownership in six transactions.

Likewise, Middlesea Insurance plc gained 1.4 per cent yet trading volume was insignificant. The equity closed the week at €0.75. Conversely, Simonds Farsons Cisk plc closed at €2.50 after there was no price movement during the week.

In the fixed-income market a total of €1.3 million was traded. The Malta Government Stock (MGS) market was the most active as 42 deals worth €1.2 million were executed.

The long-dated issues re­mained favourites among inves­tors as they sought higher yields. The 4.8 per cent MGS 2028 was the most traded issue as €240,000 was traded in eight deals. The issue closed the week at €103.39 and is now yielding 4.5 per cent.

The 5.25 per cent MGS 2030 followed as €220,000 was traded and the issue closed at €105.70.

In the corporate bonds market, trading activity was spread over nine issues. The 7.5 per cent Mediterranean Bank plc 2019 was the most active issue. A total of 33,000 nominal were traded and the bond’s price has now reached €103.25.

This article, which was compiled by Jesmond Mizzi, managing director of Jesmond Mizzi Financial Advisors 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 a member of the Malta Stock Exchange and a member of the Atlas Group. 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 at 67, Level 3, South Street, Valletta, or on Tel: 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.

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