The Malta Stock Exchange (MSE) index last week returned to positive territory following a slight retreat the previous week, but the gain was a mere 0.2 per cent after the index fell in three sessions in between gaining in the week’s opening and closing sessions.
The major banks dictated the way in which the index fluctuated between positive and negative territory as both started the week positively, fell in the following three sessions and appreciating on Friday.
Grand Harbour Marina plc (GHM) topped the list of gainers after a company announcement early in the week sent the equity higher while Plaza Centres plc and Bank of Valletta plc (BoV) followed with similar gains.
Last week the MSE closed at 3,248.32 points, and since January it is up by 1.1 per cent. Last week a total of 655,400 shares were traded in 165 deals, as turnover reached €1 million, down from €1.5 million a week earlier. In the fixed-income market a total of €9.6 million was dealt in Malta Government Securities over 24 issues.
On a general note, yields improved on the week as prices fell. The 3.6 per cent MGS 2013 was the most active issue with over €3 million being traded, followed by the long-dated 4.8 per cent MGS 2028. Yields improved across all long-dated issues as the 5.2 per cent MGS 2031 lost 0.4 per cent and is now yielding 4.8 per cent, while the 5.25 per cent MGS 2030 lost 30 basis points as the yield-to-maturity now stands at 4.7 per cent.
On Friday, the Treasury announced that the Government will be issuing two fixed-rate stocks – Three per cent MGS 2019 and 4.5 per cent MGS 2028 – for the aggregate amount of €120 million, subject to an over-allotment option of €80 million in the event of oversubscription. Prices of these securities will be determined on Thursday.
Back to the equity market, BoV was the most liquid equity in terms of value, followed by HSBC Bank Malta plc. Significant trading activity was also seen in GHM shares as turnover reached €132,000. The marinas operator closed the week on a high after it gained 3.3 per cent, or €0.06, to close at €1.88 after touching a weekly high of €1.90.
The equity’s share price jumped on news that the board of directors is scheduled to meet on February 27 to consider and if appropriate, approve the payment of an interim dividend.
Trading volume was unevenly spread as most shares changed hands on Friday with 50,000 shares being traded in a single session. In all, 70,150 GHM shares were traded, up from 3,100 a week earlier.
In the banking sector BoV shares topped the list of gainers with a 0.8 per cent gain as the equity ended the week at €2.28 after closing the previous week at €2.262. BoV shares started the week on a high but trading volume was weak and the equity soon returned in negative territory.
The share price fell in three consecutive sessions but on Friday it improved by one per cent on higher volumes. In fact, throughout the week over 143,000 BoV shares were traded, half of which took place in the final session. Since January the equity is up five per cent.
Last week the bank published its interim directors statement in which it reported that no material events and/or transactions have taken place that would have an impact on the bank or the group’s financial position. It added that the period under review was characterised by low-key economic activity, where demand for credit remained subdued, while deposits grew at a discreet rate.
Net commission income registered a satisfactory year-on-year increase, driven by payments, cards and investment business. Costs remained close to last year’s levels, while impairment charges fell over the corresponding period in 2012.
The bank said that in the short term, local demand for credit is expected to remain subdued in the run-up to, and the immediate aftermath of the March 9 general election.
Economic activity in a number of EU member states will continue to be dampened, primarily by austerity programmes. However, renewed confidence in the financial markets coupled with the possibility of some European economic recovery later in 2013 is expected to result in a more stable eurozone for the remainder of the year.
HSBC shares gained 0.2 per cent as the equity closed the week at €2.74. Initially the equity moved higher to reach a weekly high of €2.75. But at this level the equity found little support as investors seemed unwilling to bid the price higher. On Tuesday the equity fell to €2.723 on one deal of 8,000 shares and dropped further in the following two sessions. But on Friday the bank’s share price returned to positive territory on improving volumes and as a result it is now up 1.5 per cent since last year’s close of €2.70.
Lombard Bank plc closed flat at €1.89 as 11 deals worth €81,000 were executed while Fimbank plc lost two per cent, or $0.02, to end the week at $1.00. Middlesea Insurance plc closed flat at €0.79 as four thin trades were executed.
Likewise, Go plc shares closed flat at €1.38 after touching a weekly low of €1.33 on Tuesday during which demand soared. Thereafter the equity closed three sessions in positive territory as it returned to €1.38. In total, over 50,000 shares were traded.
Plaza Centres gained just under one per cent to end the week at €0.585 while International Hotel Investments plc edged minimally lower to close the week at €0.741. Trading in both equities was significantly low.
In the IT sector, 6PM Holdings plc was the only loser as the equity shed 6.5 per cent to end the week at £0.29 while both RS2 Software plc and Crimsonwing plc closed flat at €0.86 and €0.55 respectively.
Malita Investments plc shed almost one per cent to close at €0.52 while Malta International Airport plc shares fell 0.7 per cent. Thin trading in Simonds Farsons Cisk plc left the equity’s price intact at €2.58 while MIDI plc shares traded unchanged at €0.26 as 52,000 shares were traded in two transactions.
Similarly, both Island Hotels Group plc and Santumas Shareholding plc traded unchanged at €0.65 and €1.79 respectively.
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.