Last Friday, the Treasury announced that the Government will be issuing two fixed-rate Malta Government Stocks later this month. The prices of the new issues, namely the 3 per cent MGS 2019 and the 4.5 per cent MGS 2028 will be announced on Thursday, while the offer to the public will open on May 20. This is the second issue for the year, and the aggregate issued amount will be €100 million, with the possibility of a further allotment of €70 million if the issue is over-subscribed.
Meanwhile, last week the Malta Stock Exchange (MSE) index gained 0.9 per cent to close the week at a 23-month high. It was also the best week-on-week gain over the past 10 weeks. Sentiment was positive as eight equities’ prices despite the fall in share price of Bank of Valletta plc (BOV).
However, noteworthy gains in HSBC Bank Malta plc and International Hotel Investments plc (IHI) lifted the MSE index for the second consecutive week. It closed at 3,369.651 points last Friday.
In terms of turnover, BOV dominated activity with €350,000 being traded, more than double that traded in HSBC, the second most liquid equity.
Significant trading also took place in Malta International Airport plc (MIA) as the company announced another positive set of traffic results for April while demand for Maltapost plc shares soared following the company’s interim financial statements.
In the banking sector, BOV was the only negative performer last week as the share price fell 3.3 per cent, or €0.075, as the equity lost ground in the first three sessions before recovering somewhat in the subsequent sessions.
The equity traded with the entitlement to the next dividend on Monday but traded ex-dividend on Tuesday when the equity shed one per cent. But mid-week the equity lost a hefty six per cent to touch a weekly low of €2.10. Thereafter the equity closed higher in two sessions and managed to close at €2.21. A total of 160,000 shares were traded in 78 deals.
On the other hand, HSBC shares moved in opposite direction as the equity’s price jumped three per cent to end the week at €2.68 after having traded at a weekly high of €2.71. Turnovers remained among the highest last week, yet a total of 52,000 shares were traded during the week, down from 105,000 shares a week earlier. Notwithstanding this gain the equity is still down by 0.7 per cent since January.
On Friday, HSBC announced the retirement of bank chairman Albert Mizzi. Sonny Portelli will act as the new non-executive chairman.
Also on a positive note, Fimbank plc gained two per cent to end the week at $1.02 after the equity seemed to be heading downwards on the week as it fell one per cent on Wednesday. But the share price recovered by 1.9 per cent on Friday after one thin trade of 1,700 shares. Over the week trading volume reached 77,250 shares.
No trading took place in Middlesea Insurance plc despite the fact that last Monday the insurance company announced that the year’s first quarter has been characterised by positive results as premium volumes picked up and the group’s local and foreign investment portfolios generated positive returns.
During the week, IHI shares gained 4.6 per cent to close at €0.889 as two trades of 12,500 shares were executed on Tuesday. The hotels operator announced that in the year’s first three months revenues in Malta and Lisbon were roughly the same as in 2012, while trading in Budapest and London improved. IHI said the situation in Tripoli remained delicate as costs are being incurred to increase manpower. Meanwhile, at the commercial centre in St Petersburg, rental income rose 70 per cent over 2012.
On the other hand, Island Hotels Group plc closed flat at €0.60.
In the IT sector, 6PM Holdings plc was the best performer as its share price rose 5.7 per cent on the week, having reached £0.56. Likewise, RS2 Software plc posted a two per cent gain to close at €1.039, thus hitting an all-time high. Six deals of 30,500 shares were recorded.
Meanwhile, Loqus Holdings plc shed five per cent to end the week at €0.14.
MIA shares closed the week marginally up at €1.925 after having closed Wednesday’s session at a new all-time high of €1.95 as it was reported that passenger movements at MIA grew by nine per cent. During the year’s first four months, passenger movements rose 8.7 per cent while aircraft movements increased 4.2 per cent.
Meanwhile, Maltapost plc gained one per cent to end the week at €1.06, thus reaching a two-year high.
On Thursday, the postal operator announced its financial results for the six months ending March 31, 2013, where pre-tax profit jumped 27.5 per cent to €1 million over the same period last year.
Turnover increased to €11.3 million, up from €11 million, while expenses rose marginally by 1.4 per cent. The company said its priority is to enhance its product offering and diversify its operations while creating alternative revenue streams.
On the other hand, Go plc closed unchanged at €1.59 as 39,000 shares changed hands. The telecommunications company announced that during the year’s first quarter, profitability was marginally below that in the same period last year, but the company’s cash generation remains healthy and it is has a high level of liquidity. The company added that it will continue focusing on cost optimisation due to intense market competition.
In the fixed income market Malta Government Bond yields improved as the Central Bank’s quoted bid prices were lower on the week as foreign equities continued to move higher and thus reach new record levels.
The 5.25 per cent MGS 2030 lost 1.25 per cent and closed the week at €109.46 while the 4.3 per cent MGS 2022 closed at €108.19. A total of €7.3 million was traded in Malta Government Bonds while €1.12 million was traded in the corporate bond market, spread over 21 bond issues.
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 Mr Mizzi at 67 Level 3, South Street, Valletta, or on Tel: 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.