The Malta Stock Exchange (MSE) index closed higher for the third week in a row as it posted another 0.5 per cent gain. Last week the MSE closed at 3,247.49 points, a level last reached in the second trading week of the year. Yet local equities struggled for direction after closing three sessions almost flat, traded lower on Thursday and returned to gains on Friday.

Last week also happened to be the last trading week of January, during which the local equities’ index gained nearly one per cent.

In general, foreign indices also moved higher, with the S and P 500 index in the US gaining just over five per cent while the German Dax posted a 2.2 per cent gain.

Throughout January Fimbank plc shares topped the list of gainers with an overwhelming 27.5 per cent rise while Maltapost plc and RS2 Software plc followed. In the banking sector, Bank of Valletta plc (BoV) rose 4.2 per cent while HSBC Bank Malta plc gained 0.7 per cent. Go plc also closed the month on a high as upbeat investor sentiment lifted the equity’s price by 12 per cent.

On the negative side, similar losses were recorded by the two hotel operators – International Hotel Investments (IHI) and Island Hotels Group – as both shed nearly 14 per cent. Given the significant weighting that the former has on the index, this fall hampered the MSE’s overall monthly position.

Last week the total value of equity trading reached €711,260 while in the bond markets, €1.07 million worth of corporate bonds, spread over 23 issues, and €18.3 million worth of government stocks, spread over 21 issues, were traded.

In banking sector, BoV shares gained 0.8 per cent as the equity rose on Thursday and Friday following a slight pullback on Tuesday. The equity closed at a weekly high of €2.278 on Friday as demand improved.

Since the bonus share issue allotted to shareholders on January 17, the equity has risen by almost 5.5 per cent.

Likewise, HSBC shares also closed in positive territory yet trading volume fell even further to 19,600 shares. The equity closed the week at €2.72 after touching an intra-week low of €2.682 early in the week but recovered somewhat on lower trading volumes.

Lombard Bank plc moved in line with its larger peers with a 2.2 per cent, or €0.04, gain as five trades of 10,000 shares were executed in the opening two sessions. Thereafter no trades were recorded in the banking equity.

Ahead of the extraordinary meet­ing held by Fimbank plc on Thursday, investors preferred to stay on the sidelines and no trades were recorded up until Friday when four deals of 65,000 shares were executed. The equity’s price barely changed while the final deal was executed at $1.02, hence flat on the week.

The two resolutions put forward for the approval of shareholders were approved, yet both resolutions are subject to pending regulatory approvals in Kuwait, Bahrain, and Malta.

On a positive note, Go plc closed another week higher, this time by 4.3 per cent, or €0.055, as the equity reached €1.35. Last week’s gain came on the back of higher volume as nearly 58,000 shares were traded, up from 33,000 shares a week earlier.

On Thursday, the telecoms company announced that Forthnet, its Greek subsidiary, informed its investors that discussions on the potential consolidation of business activities have been inconclusive and thus have been terminated.

Maltapost plc shares continued to rise as upbeat demand sent the equity above the psychologically-significant €1 level. In fact, the postal operator’s share price closed at €1.02 after trading at €0.98 early in the week. But volume fell to almost 40,000 shares traded in 13 transactions.

On the downside, International Hotel Investments plc lost 1.5 per cent to close the week at €0.74. Thin trading on Monday sent the equity 1.2 per cent higher while the hotels operator’s share price shed 2.6 per cent on Thursday as liquidity spiked. In fact, over 268,000 shares changed hands during one trading session.

Midi plc shares also ended the week on the downside with a 1.8 per cent loss as the last deal was executed at €0.28. A total of 29,000 Midi shares were traded in three transactions.

Middlesea Insurance plc edged minimally lower as the insurance firm closed the week at €0.79.On Friday the company an­nounced that its board of directors is due to meet on February 27 to consider and approve the firm’s audited financial statements for the year ended December 31, 2012, and to consider the recommendation of a dividend.

Plaza Centres plc topped the list of gainers with a seven per cent, or €0.04, gain as the equity ended the week at €0.60 although trading volume was insignificant and surely not reflective of the broad market sentiment.

On similar trading volume Simonds Farsons Cisk plc gained 1.2 per cent to end January at €2.58, thereby reaching a new high.

In the IT sector Crimsonwing plc gained almost two per cent as the equity rose to €0.55. Throughout the week a total of 150,000 shares were traded in seven transactions. 6PM Holdings plc closed unchanged at £0.31 on low volume.

Likewise, Malta International Airport plc also closed flat at €1.795 after trading at a weekly low of €1.78. In January the airport operator’s share price lost one per cent.

Finally, last Monday Island Hotels Group plc announced that a board meeting to review and approve the consolidated audited financial statements for the year ended October 31, 2012, will be held on February 22.

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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