The Malta Stock Exchange (MSE) index closed the last week of February higher at 3,303.475 points, a level last reached in mid-July 2011. The MSE gained another one per cent last week to bring its tally of positive consecutive gains to three weeks.
The value of turnover during the week doubled to €1.6 million and activity was well spread across 15 equities, of which nine closed in positive territory. Midi plc topped the list of gainers, while both International Hotel Investments plc (IHI) and Grand Harbour Marina plc (GHM) posted noteworthy gains. Banking sector equities failed to move in line with each other as both HSBC Bank Malta plc and Lombard Bank plc fell while Bank of Valletta plc (BOV) gained.
Turnover in Midi plc soared, in fact the volume traded was more than double that traded in BOV, which is usually the most active equity in terms of value. Moreover, Malta International Airport plc (MIA) shares were also heavily traded as 26 deals worth €254,000 were executed. However, all four banking equities were among the most sought-after equities.
In the fixed-income market, activity fell most notably in Malta Government Securities, where turnover fell to €8.7 million, down from €15 million a week earlier. The short-dated 6.45 per cent MGS 2014 was the most active issue while the long-dated 5.2 per cent MGS 2031 gained 81 basis points while the 4.8 per cent MGS 2028 followed with a 0.6 per cent gain.
On Friday, the Treasury announced that it had received 4,912 applications/bids having a total nominal value exceeding €292.9 million against the authorised sum on issue of €120 million, subject to an over-allotment option for an additional amount of €80 million. Furthermore, the Treasury announced that all subscriptions by members of the public, amounting to €123.8 million were accepted in full. Meanwhile, in the corporate bonds market, liquidity was relatively poor as €260,000 was dealt across 14 bonds. The seven per cent Gap Developments 2011 – 2013 was the most traded issue while the 5.8 per cent IHI 2021 followed.
Equity markets abroad closed the week marginally higher after having kicked off the week in negative territory as Italy’s election results and the re-emergence of the US fiscal cliff weighed heavily on sentiment. Risky assets and the euro fell as Italy could be moving towards a coalition government, although political analysts hinted that fresh elections are round the corner.
As a result, safe haven currencies such as the US dollar gained as investors shunned risky assets and sought shelter in safer assets. Sentiment turned positive mid-week after US Federal Reserve chairman Ben Bernanke reiterated that the benefits of quantitative easing measures outweighed the costs, and that he does not intend to withdraw the current stimulus path.
On Thursday, markets headed even higher following a string of positive data while comments by European Central Bank president Mario Draghi were well received by markets. Yet on Friday, markets in Europe closed down despite recovering somewhat during the day, while in the US, markets gained following a surprise rise in US manufacturing activity in February, and sending the Dow Jones Industrial Average to its highest level since 2007.
Back to local equities, Midi plc closed the week on a high after the equity soared 11 per cent, or €0.03, to end the week at €0.30. On February 22 the company announced it intends to sell its entire shareholding of Tigne Mall Ltd, which owns and operates The Point shopping mall. The transaction is subject to shareholder approval at an extraordinary general meeting scheduled for March 22.
The news sent the equity higher as investors bid the price up on improved demand. In fact, nearly 1.5 million Midi shares were traded in 35 deals worth €400,000.
A company announcement by GHM on Thursday also sent the equity to a 20-month high of €1.98. The company announced it will distribute a net dividend of €0.12 per share to registered shareholders as at Tuesday. On the news, the equity jumped by 4.2 per cent as five deals of 33,000 shares were executed. There were no further deals throughout the week.
In the banking sector, BOV closed the week as the only gainer as the bank’s share price edged higher by a mere 0.4 per cent, closing the week at €2.278 after trading just shy of €2.30. Fifty deals worth €200,000 were executed. The bank’s equities have gained 4.8 per cent since January.
Conversely, HSBC shares, ahead of the group’s full-year results for the year ended 2012 which are expected tomorrow, lost 0.7 per cent. The equity closed the week at €2.74 as demand improved to almost 60,000 shares were traded in 24 transactions. Meanwhile, Lombard Bank plc lost 0.5 per cent as the bank’s share price fell to €1.89.
Fimbank plc traded flat at $1.00 after eight deals of 168,000 shares. Likewise, Middlesea Insurance plc also traded flat as the company reported that in 2012 the group’s profit increased to €17.98 million, while also announcing a gross dividend of €0.025 per share to be approved by shareholders in the forthcoming general meeting.
On the other hand, IHI shares closed the week on a high with a 5.3 per cent, or €0.04, gain as the hotels operator’s share price closed at €0.79 after trading at a weekly low of €0.751 as over 22,000 shares were traded. Meanwhile, Plaza Centres plc shares lost almost one per cent to end the week at €0.585. The company announced that it has rescheduled its board meeting to March 13.
Go plc shares gained a minimal 0.4 per cent as the equity surpassed the €1.40 level to close the week at €1.405. Yet trading volume proved to be weak as 10,400 shares changed hands in 11 deals.
Meanwhile, improved demand for MIA sent its share price higher by 1.1 per cent to close at €1.81 while Maltapost plc managed to close flat at €1.05 after trading at a weekly low of €1.039.
In the IT sector, both RS2 Software plc and 6PM Holdings plc gained. The former posted a 4.7 per cent gain and has now reached €0.90, a 21.6 per cent gain since the beginning of the year. Meanwhile, 6PM ended another week higher after an impressive 45 per cent gain the previous week. Last week the equity posted a 2.4 per cent gain to end the week at £0.43.
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.