The Malta Stock Exchange (MSE) index returned to positive territory after investors grew bullish to­wards Bank of Valletta plc (BoV) and Fimbank plc whose equities gained nearly four per cent and 27.5 per cent respectively on improved demand. But the upbeat sentiment failed to shift on to the equities of HSBC Bank Malta plc, which closed another week lower, while Lombard Bank plc shares closed the week flat.

In the IT sector, RS2 Software plc and Crimsonwing plc moved in opposite directions while both International Hotel Investments plc (IHI) and Island Hotels Group plc closed the week in the red.

Turnover over the week im­proved to €1.5 million as demand for BoV, HSBC and Fimbank plc rose. As is usually the case, BoV was the most liquid with over €500,000 changing hands across 79 deals. HSBC was the second most liquid equity by value as turnover surged to €260,000, up from €100,000 a week earlier.

Last week, there were over 230 transactions in 16 of the 22 equities listed on the local stock exchange, with the MSE index gaining 0.6 per cent to end the week at 3,214.025 points.

Abroad, equity markets kicked off the week on a positive note but investors’ sentiment swiftly turned negative after Eurogroup president Jean-Claude Junker said the euro has reached “dangerously strong levels”. On hearing the news traders booked their profits on the euro, and the currency fell against other major currencies as selling pressure rose.

To make matters worse, Germany published weaker GDP figures for 2012. But the correction was short-lived as positive data emerged from the US. The news took the markets somewhat by surprise, and as a result, risk appetite returned and both equities and the euro regained some of the lost ground on Thursday. However, most global indices gained only marginally over the week.

Back to local equities, BoV shares were the main contributors to last week’s gain of the MSE index as the banking equity’s share price rose by 3.7 per cent, or €0.081, to close at €2.25.

The bank gave its investors a bonus share of one share for every nine already held on Thursday. Investors who bought the equity up till Monday were entitled to this bonus and as result the equity’s price adjusted on Tuesday to reflect this bonus share issue. In fact, after closing at €2.40 on Monday the share price adjusted to €2.16 on Tuesday and headed higher as demand improved.

During the week the bank’s share price hovered between a weekly low of €2.19 and a high of €2.25, the week’s closing price. Over the past three weeks the equity has gained 3.5 per cent.

HSBC shares closed another week lower, this time by 1.5 per cent, or €0.04, but liquidity im­proved further last week. Demand was high on Monday, fell back significantly in the following sessions and picked-up again on Friday. A total of 94,000 shares were traded in 37 deals.

The gain in the equity’s price posted mid-week was not enough to outweigh the losses in two other sessions and the bank’s share price now stands at €2.70.

Thin trading in Lombard Bank plc left the equity’s price flat at €1.86 despite some heavy intra-week volatility. In fact the bank’s share price fluctuated between a high of €2 and a low of €1.86 as 13,000 shares were traded across seven transactions.

Conversely, Fimbank plc, which was the most liquid by volume, gained a hefty 27.5 per cent, or $0.22. The equity closed the week at $1.02 after touching a weekly high of $1.05 following the news that Fimbank will bring islamic banking to Malta.

The bank’s extraordinary general meeting will be held on January 31, when investors will be asked to approve various resolutions regarding the joint offer by Burgan Bank and United Gulf Bank.

Go plc closed another week higher as the telecoms equity gained four per cent, or €0.05, to end the week at €1.27. Since the beginning of the year the equity has already returned 6.7 per cent. Last week a total of 17,500 shares were traded in 13 transactions.

In the hotels sector, IHI shares plummeted six per cent after just one deal of 130 shares and the equity closed the week at €0.751. Meanwhile, Island Hotels Group plc lost 2.3 per cent to close at €0.684.

Maltapost plc gained three per cent as the postal operator’s share price closed the week at €0.95. Following the recent scrip dividend issue, over 1.5 million Maltapost shares were admitted to trading on Thursday.

On the same day, the company announced that it has entered into an agreement with Middlesea Insurance plc whereby, subject to regulatory approval, a subsidiary of Maltapost will be appointed as an agent of Middlesea Insurance plc. The latter ended the week up by nearly seven per cent, or €0.05, after two thin trades on Tuesday.

In the IT sector, RS2 Software plc gained 3.7 per cent to close at €0.85 while Crimsonwing plc lost 5.3 per cent to end at €0.54. 6PM Holdings plc traded flat at £0.31.

Likewise, Midi plc closed the week two per cent lower at €0.27 while Malita Investments plc gained three per cent.

Malta International Airport shares fell to €1.76 while Simonds Farsons Cisk plc shares were flat at €2.50.

In the Malta Government Stocks market there was over €40 million worth of trading. Twenty issues were active, of which the 7.8 per cent MGS 2018 was the most liquid issue. In fact, over half of last week’s turnover took place in this issue.

Across the long-dated issues the 4.8 per cent MGS 2028 was the most active and its price now stands at €103.78.

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.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.