The Malta Stock Exchange (MSE) index ended the month of May with a 0.2 per cent gain and thus registered seven consecutive positive months. On a general note, May proved to be rather positive for the MSE, as local equities registered gains for three weeks, closed lower in another week, while in last week the index closed flat at 3,365.331 points.
Among financials, Fimbank is by far the best former this year with a hefty 25 per cent gain
Last month’s gain was the lowest month-on-month rise as gainers and losers nearly cancelled one another. Among the financials, Middlesea Insurance plc shed 6.2 per cent while International Hotel Investments plc gained a hefty 8.3 per cent to close the month just shy of €0.90. IT sector companies performed exceptionally well as 6PM Holdings plc and RS2 Software plc gained over 13 per cent.
On the week, despite declines in five equities, gains in Bank of Valletta plc (BOV), Simonds Farsons Cisk plc (SFC) and Malita Investments plc were enough to outweigh the losses in the other five, while eight equities closed the week flat.
On the upside, Malita Investments plc headed the list of gainers while Island Hotels Group plc (IHG) shares were the hardest hit, yet losses in heavyweights Go plc and HSBC Bank Malta plc played a much bigger part in the MSE’s subdued performance.
Abroad, equity markets were rather volatile despite having kicked off the week on a positive note. However, as concerns resurfaced that the US Federal Reserve may cut down on its stimulus, risky assets declined as negative US data showed a rise in claims for unemployment benefits and a slightly sub-forecast GDP reading.
Notwithstanding the not-so-positive news, investors preferred to look on the bright side and shortly after both set of news were released, markets headed higher as analysts anticipated that the US Fed would not shrink its quantitative easing programme soon.
Locally, IHG shed 5.5 per cent as the equity closed at €0.52 after trading at a weekly high of €0.589. However, as the price declined to €0.52, demand soared. In fact, on the week, nearly 250,000 IHG shares were traded in nine deals. The equity lost 13 per cent during the month.
In the banking sector, BOV was the only winner last week as the bank’s share price gained 0.6 per cent to close on Friday at €2.249. The equity closed higher in the first three trading sessions while it edged minimally lower in the following sessions as a total of 43 deals worth €200,000 were executed.
The equity lost 2.2 per cent in May as the share price fluctuated between a low of €2.10 and a high of €2.299. Year-to-date BOV shares are up by 3.5 per cent.
Conversely, HSBC shares, which are down by 2.6 per cent since the beginning of the year, closed the week lower by 0.6 per cent, or €0.015, to end at €2.63. Trading volume declined to 35,000 shares spread across three trading days.
Throughout May the equity shed 1.5 per cent.
Fimbank plc failed to close at $1.02, last week’s highest trading price, as the share price returned to the previous week’s close of $1. Over 200,000 shares were traded, with Monday’s session taking the lion’s share.
Among financials, this equity is by far the best former this year with a hefty 25 per cent gain.
In a company announcement on Thursday, the bank announced that the Malta Financial Services Authority found no objection in the transfer of shareholding from Massaleh Investments KSC.C and Kuwaiti Interest for Development Holding Co. to Burgan Bank and United Gulf Bank. The latter will acquire 17,948,867 ordinary shares while the Burgan Bank will acquire 350,000 ordinary shares.
Likewise, Middlesea Insurance plc shares, which have strongly outperformed the market since the beginning of the year, failed to move higher last week as the share price of the insurance firm lost 1.2 per cent. Activity in the equity remained rather subdued as only 4,000 shares were traded.
Go plc shares lost 1.8 per cent as thin trading on Wednesday sent the equity lower by two per cent while it managed to recoup 0.7 per cent the following day. Go shares ended the week at €1.55 as trading volume declined to 7,000 shares, down from 62,000 shares a week earlier.
Following a positive close the previous week, IHI shares failed to hold on to the €0.90 price level as it declined minimally to €0.899 as the share price barely moved over eight transactions of 16,000 shares. Minimal price movements in Malta International Airport plc shares left the equity’s price at €2 while Malita Investments plc gained 1.2 per cent to end the week at €0.525.
The two active IT sector equities closed flat last week as RS2 closed at €1.16 after trading at a weekly high of €1.171, while Crimsonwing plc closed at €0.57.
Simonds Farsons Cisk plc gained a mere 0.4 per cent to close at €2.57 while Maltapost plc traded flat at €1.05 as one deal of 20,000 shares was executed.
Plaza Centres plc, Medserv plc, and Midi plc closed at €0.57, €3.90 and €0.25 respectively.
In its interim directors’ statement last week, Plaza Centres confirmed that the financial position of the company remained satisfactory and in line with the directors’ expectations. Compared to the same period last year, occupancy level declined, however higher occupancy is expected in the third quarter of this year.
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.