Following last week’s decline the Malta Stock Exchange (MSE) Index ended the week in a flat position at 3,325.017 points. Despite investors being more inclined towards a bearish mood, in the last session of the week large caps emerged as a key source of support in pushing the index towards pairing its losses.
International Hotels Investments plc managed to close the week on a higher note, notwithstanding the initial dip, while Bank of Valletta plc upheld its rally for the third consecutive week. Conversely, Malta International Airport plc shaved further gains from its recent all time highs, while HSBC Bank Malta plc sustained its recent slacking position.
Weekly trading volume reached over one million shares, which were traded across 18 equities, of which five garnered support, six edged lower, while seven closed unchanged. Surprisingly, RS2 Software plc had this week’s lion’s share with a remarkable trading value of €391,298.
Meanwhile, from the local sovereign debt market, total turnover for the week amounted to just over €7.6m as 17 from the 20 active stocks recorded lower yields following the notable gains within major equity markets and as speculation grew that the European Central Bank will revise interest downwards, investors.
From the financial sector, Bank of Valletta plc edged higher with a 1.3 per cent appreciation to close the week at €2.30. Clearly, investors expressed their enthusiasm in yesterday’s session, as the encouraging interim results pushed the equity towards a buyers market. In fact, on Thursday afternoon the Bank announced its financial statements for the first six months ending March 31, 2013. The BOV Group recorded a profit before tax of €64.6m, an increase of 32 per cent over the same comparable period last year. One should note the increase of €13.2m in the fair valuation of financial instruments when compared to the €0.5m recorded in the previous year following improved market sentiment. The board of directors also proposed an interim dividend of €0.039 net of tax to all shareholders appearing on the Bank’s registrar as at close of business on Thursday, May 9, 2013.
On the contrary, sellers re-affirmed control over HSBC Bank Malta plc, as the banking equity headed lower by just below two per cent for the second consecutive week, thus moving towards the €2.66 price level. Lack of conviction pushed the equity towards a wobbly week with a loss of 4.1 per cent in two sessions to touch weekly lows of €2.60.
However the equity managed to partially recuperate the said loss with a 2.3 per cent appreciation in the last session of the week. Total turnover amounted to 38,838 shares, which were executed over 13 transactions.
Meanwhile, from the same sector, both Lombard Bank plc and FIMBank plc closed the week unchanged at €1.95 and $1.00 after trading at weekly lows of €1.90 and highs of $1.02 respectively. The other non-mover was Middlesea Insurance plc, which closed flat at €0.895.
From the telecommunications sector, GO plc paired last week’s losses with a gain of 2.3 per cent, moving back towards the €1.58 price level. A total of 39,500 shares were traded over 20 transactions.
In line with its peer, International Hotels Investments plc captured a weekly gain of just below two per cent, after Monday’s remarkable dip. In fact, the hotelier’s equity managed to rebound swiftly with a notable gain of 6.8 per cent in yesterday’s session to close the week at €0.79.
Likewise, Malita Investment plc recorded a gain of just below two per cent over a single session of 15,000 shares to end the week at the €0.52 price value.
From the IT sector 6pm Holdings plc rallied for the second week in a row with an additional gain of 8.2 per cent, thus touching the £0.53 price level and thus registering a year-to-date gain of 71 per cent.
Conversely, Crimsonwing plc lurched downwards by 3.5 per cent over 26,100 shares to close at €0.55.
Meanwhile, RS2 Software plc closed the week flat at €1.00 after shifting from highs of €1.02 to lows of €0.96. On Tuesday the Software Company announced its financial statements for the year ending December 31, 2012, where profit before tax for the Group increased to €3.1m when compared to the €2.4m registered in 2011. Furthermore, the Board of Directors is recommending a final net dividend of €0.02c5 to all shareholders who appear on the company’s registrar as at May 13, 2013. In addition, the board is also recommending a bonus issue of one share for every 16 held. Both resolutions are subject to approval at the Annual General Meeting.
From the aviation industry, Malta International Airport plc declined by a further 2.1 per cent over 9,100 shares to close at €1.88, while Midi plc extended its recent downward trend with a loss of 4.8 per cent, thus edging lower towards the €0.295.
The other losers for the week were Simonds Farsons Cisk plc, which registered a minimal loss of 0.4 per cent over 3,341 shares and Grand Harbour Marina plc which slipped by 2.6 per cent to close at €1.86.
Simonds Farsons Cisk plc announced that for the year ended January 31, 2013, the Group recorded a profit before tax of €6.4m up from €5.1m in 2012 after revenue jumped to €77.2m from €70.8m. A final net dividend of €0.07 per share will be recommended for the approval of the AGM.
Finally, the other non-movers were Plaza Centres plc, Santumas Shareholdings plc and Maltapost plc.
This article which was compiled by Jesmond Mizzi Financial Advisors Limited, 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 is 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 Financial Advisors Limited at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email info@jesmondmizzi.com.