The Malta Stock Exchange (MSE) index returned to positive territory last week following a pullback the previous week. In fact, as large caps gained, the equity index posted a 1.1 per cent gain as losses were minimal. The positive trend was evident almost throughout the week, as the index gained in four sessions and only edged minimally lower in Wednesday’s session.
The two major banks closed the week higher after having fell the previous week, while International Hotel Investments plc (IHI) soared in Friday’s session. All IT sector companies continued to rise while Malta International Airport plc (MIA) reached another record high.
A total of 154 deals spread unevenly between 17 equities were executed for a total value of €900,000. RS2 Software plc was the most active in terms of volume, followed by Bank of Valletta plc (BOV). Last week, Tigné Mall plc was active for the first time since the equity was admitted to the MSE official list earlier this month.
Among the large caps, IHI shares gained the most as the hotels operator posted a three per cent gain. At the company’s annual general meeting on Thursday IHI chairman Alfred Pisani reaffirmed that the company will pay a dividend during this financial period once the London apartments were sold.
The markets welcomed the news, as on Friday the share price jumped by €0.015 to €0.90 after investors preferred to remain on the sidelines in the previous sessions. The equity is now up by nearly five per cent year-to-date.
In the banking sector, BOV gained 1.6 per cent, or €0.035, as the bank’s shares closed higher in two sessions, but fell in another two sessions. The equity closed the week at €2.235 after trading at a weekly low of €2.18 and a high of €2.244. Over 45 transactions worth €250,000 were executed as trading volume was initially high, yet it declined considerably from Wednesday onwards.
Likewise, HSBC Bank Malta plc ended in positive territory as 40,000 shares were traded in 19 transactions. The equity closed the week up 0.6 per cent at €2.645. The bank announced that the board of directors is due to meet on August 5 to approve the group’s and the bank’s interim accounts for the half-year ending June 30, 2013, and to consider the declaration of an interim dividend.
Fimbank plc was the only financial equity to lose value, but trading volume was insignificant and surely did not represent the sentiment of the broader market. The equity price fell one per cent on a thin trade of 500 shares on Friday to close at $1.
Meanwhile, no trading took place in Lombard Bank plc even after the bank issued its interim directors’ statement on Monday, in which it said that loans and advances remained more or less flat when compared to the fiscal year end 2012. Compared to the same period last year, interest expense fell while the bank enjoyed positive trends in fee and commission income earned.
On the other hand, MIA shares ended the week at €2 after trading at an all-time-high of €2.05 mid-week. Following the annual general meeting held last week the shareholders approved a net final dividend of €0.07 per share to be paid to shareholders on June 5.
In the IT sector, RS2 shares stole the limelight as the equity jumped by 8.4 per cent following the previous week’s three per cent gain. The equity ended the week at €1.16 as 28 deals worth €230,000 were executed.
Likewise, 6PM Holdings plc’s share price, which has almost doubled over the first five months of the year, gained 3.5 per cent, or £0.02, as the equity closed the week at £0.60.
Crimsonwing plc gained 1.8 per cent to reach €0.57. The company announced that provisional figures for the financial year ending March 2013 show a healthy 15 per cent increase in revenue to just under €18 million. The company anticipates that revenue in the next financial year will be in excess of €20 million.
On the downside, Island Hotels Group plc shares experienced the largest fall as the share price slumped eight per cent to a new record low of €0.55. A total of 11,000 shares changed hands in five deals. The board of directors is due to meet on June 25 to discuss the company’s half-yearly financial statements for the period ending April 30, 2013.
Meanwhile, thin trading in Malita Investments plc sent the equity 3.6 per cent higher to €0.519, and Tigné Mall plc gained one per cent to close at €0.505. On the other hand, Midi plc shares traded flat at €0.25 while Grand Harbour Marina plc shed 0.5 per cent from its previous close.
Go plc closed flat at €1.57 as trading volume rose further to 62,000 shares while Maltapost plc failed to hold on to its weekly high of €1.055 as it returned to €1.05.
Abroad, equity markets fell off their recent highs as comments by US Federal Reserve chairman Ben Bernanke on future quantitative easing and disappointing manufacturing figures out of China reminded investors that the global economy may not be as healthy as they had anticipated.
The lack of confidence sent risky assets in the red after equity markets headed higher over the past weeks. Not even positive data out of Germany and the US managed to change investors’ mood as losses persisted and traders continued to book their profits.
In fact, order for US durable goods rose more than forecast in April, while on Friday morning, business confidence figures out of Germany increased more than analysts had forecast.
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.