The three-week positive rally on the Malta Stock Exchange (MSE) came to an end last week after sentiment turned negative after six straight sessions of gains. In fact, local equities kicked off the week lower and registered another two days of negative returns, but gained marginally on Tuesday and Friday.
6PM has now gained 58 per cent year-to-date
Financials were among the main laggards, except for Bank of Valletta plc (BOV) and Fimbank plc, which moved against the trend. In the same sector, Lombard Bank plc and HSBC Bank Malta plc closed lower on insignificant trading volume while Middlesea Insurance plc (MSI) closed in the red over improving volumes.
On the upside, 6PM Holdings plc was the best performing equity overall with a nine per cent gain while Maltapost plc shares followed with a three per cent gain.
Conversely, Island Hotels Group plc (IHG) topped the list of losers as thin trading sent the equity four per cent lower, while Plaza Centres plc lost 3.4 per cent following a sharp 6.8 per cent drop on Thursday, before recovering some ground on Friday.
Throughout the week, a total of €800,000 was traded on the equity market, half of which took place in BOV while the remaining was spread over 15 equities. Go plc shares were the second most active as 10 deals worth €63,000 were executed, while trading in MSI doubled to over €49,000.
In the fixed-income market, €14.4 million was traded, up from €5.8 million a week earlier. Trading in corporate bonds fell to €400,000 as two banking bonds were among the most liquid. Three deals worth €67,000 were struck in the 4.8 per cent BOV 2020 while five deals of 62,000 nominal were executed in the 7.5 per cent Mediterranean Bank 2019.
In the Government Stock Market, trading value totalled €14 million as three issues dominated activity. The 3.6 per cent MGS 2013 was the most liquid issue as four deals of €5.1 million were recorded, followed by the two long-dated issues maturing in 2028.
Yields across government stocks were rather mixed last week as a number of short-dated and long-dated issues registered lower prices while some medium-dated issue gained.
The 6.6 per cent MGS 2019 gained one per cent while the 4.3 per cent MGS 2022 gained 20 basis points. The long-dated 5.1 per cent MGS 2029 lost 0.7 per cent and closed the week at €108.97.
Back to equities, BOV shares closed another week higher, this time by 0.84 per cent, or €0.021, as gains on Tuesday and Wednesday lifted the equity following a negative start to the week. A total of 180,000 shares were traded in 51 deals, with the lion’s share taking place on Monday’s session. In fact, almost 104,000 shares were traded during the week’s opening session.
After last week’s gain, the bank’s share price now stands at €2.27, up 4.4 per cent since January. The results of the BOV Group for the first six months of its financial year are due to be announced on Thursday.
On the other hand, trading in HSBC continues to be characterised by thin volumes. Last week, four deals of a mere 3,000 shares were executed. Due to lack of demand the equity’s price fell by one per cent, or €0.03, as sellers were forced to accept lower bids. The equity closed the week at €2.71.
Meanwhile, Lombard Bank plc was the heaviest faller in the banking sector as the equity posted a 2.5 per cent drop following a recent rally in the past weeks. But last week’s fall came on the back of insignificant trading on Tuesday, while the equity closed flat in the remaining sessions. The bank’s share price ended the week at €1.95.
One trade of 11,200 shares in Fimbank plc sent the equity higher to $1.
Also in the financial services sector, MSI shares lost 0.6 per cent to close at €0.895 last Friday after trading at a weekly high of €0.92 earlier in the week.
Meanwhile, IHG shares fell four per cent to €0.60 as 3,250 shares were traded in four deals. International Hotel Investments plc closed flat at €0.775 while Midi plc lost 1.3 per cent to end the week at €0.31.
From the list of gainers, Maltapost plc posted a three per cent gain as the postal operator ended the week up at €1.05 after having reached this level early in the week, which it maintained thereafter.
Malta International Airport plc lost one per cent after reaching an all-time high of €1.939 the previous week. Throughout the week, a total of 22,400 shares were traded.
In the IT sector, 6PM recorded a hefty nine per cent gain after the company returned to profit after posting losses in the previous two years. Moreover, the directors proposed a net dividend of £0.016 and a bonus share issue of one share for every 25 already held.
The group reported a profit of £526,536 in 2012 compared to a loss of £354,888 in 2011. The equity ended the week at £0.49 as 87,500 shares were traded. This equity has now gained 58 per cent year-to-date.
Meanwhile, RS2 Software plc closed flat at €1 after three deals of 37,000 shares were executed. RS2 is now the second best performer in 2013. Since the beginning of the year the equity has jumped by 35 per cent.
On the other hand, Go plc shares lost 2.2 per cent, or €0.035, as the equity ended the week at €1.545. The equity, which was active in three sessions, closed all sessions in negative territory, with Thursday’s session being the main driver of this fall with a drop of 1.5 per cent.
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.