The Malta Stock Exchange (MSE) index closed the week on a high, with a 2.2 per cent gain after having closed the previous six weeks lower. Sentiment improved last week as the two major banks gained over two per cent while International Hotel Investments plc (IHI) moved higher as demand for the equity improved.

The MSE closed the week at 3,413.339 points, a level last reached in the first week of September. The local equities index is now up 6.3 per cent year-to-date.

Thirteen equities were active. Six gained, five closed flat while Go plc and Medserv plc fell. Middlesea Insurance plc shares were the best performers while RS2 Software plc shares returned to positive territory after reaching new record highs.

Activity in the equity market was lower, as 98 deals worth €600,000 were executed, down from €1.1 million traded the previous week. HSBC Bank Malta plc remained the most sought-after equity as it registered the highest turnover, although it was significantly lower than a week earlier. Crimsonwing plc was the second most active equity as it traded in three sessions and reached a total value of €117,000.

In the fixed-income market, a total of €3.6 million was transacted. In the Malta Government Stocks market, 110 deals worth €2.6 million were recorded. Yields were rather mixed yet skewed to the upside as a number of bonds posted lower prices.

The 5.9 per cent MGS 2015 lost 25 basis points while the long-dated 5.25 per cent MGS 2030 shed 0.2 per cent. On the upside, the 3 per cent MGS 2019 gained 33 basis points and the 4.5 per cent MGS 2028 gained 24 basis points.

In the corporate bond market, turnover jumped to €1 million as 20 issues were active. The 4.25 per cent Fimbank 2013 was the most liquid issue as 500,000 nominal was traded over one transaction.

The 4.8 per cent BOV 2018 was among the most active as the bond closed almost flat at €105.75.

After trading hours on Friday, Fimbank plc announced that the 7 per cent Fimbank 2012-2019 will be redeemed on October 30.

Back to local equities, IHI shares gained five per cent, or €0.04, as the equity closed at €0.86, having traded at a weekly low of €0.82. The equity managed to fully recover the previous week’s 3.5 per cent decline as demand increased to 43,000 shares spread over 10 deals. Following last week’s gain, the equity’s performance since the beginning of the year is now flat.

In the banking sector, Bank of Valletta plc shares gained 2.5 per cent, or €0.059, to close the last week of September at a five-week high of €2.40. However, last week’s gain was backed by a significant drop in demand as only 28,000 shares were traded, down from 74,000 shares a week earlier. So far this year the equity has gained 10.4 per cent. Last Friday, BOV announced that it will be holding its annual general meeting on December 19.

HSBC shares managed to move higher last week after having lost 1.3 per cent in the previous three weeks. The bank’s equity gained just over two per cent, or €0.05, as it closed Friday’s session at €2.505 after trading at a weekly low of €2.455. Over 69,000 shares changed hands in 35 deals worth nearly €200,000.

No trading took place in Lombard Bank plc and Fimbank plc, while Middlesea Insurance plc posted a 6.3 per cent, or €0.05, gain as the share price of the insurance firm now stands at €0.85. One deal of 8,800 shares was executed.

On a negative note, Medserv plc lost almost three per cent to end the week at €3.50 on one thin trade of 1,500 shares.

Go plc edged 0.1 per cent lower to close at €1.489 having recovered from a weekly low of €1.445. A total of 10,000 shares were traded in four deals.

In the IT sector, RS2 Software plc shares managed to break through the €1.90 level in Friday’s session. Demand was initially rather weak following two sessions of inactivity but on Friday almost 29,000 shares were traded. Due to the higher demand, the share price even touched an all-time high of €2, but it swiftly returned to €1.95, therefore gaining 5.4 per cent.

A surge in demand for Crimsonwing plc shares left no effect on the equity’s price as it closed flat at €0.74. Nearly 160,000 shares were traded.

Maltapost plc shares also closed unchanged at €1.10 following a 10 per cent spike in price a week earlier. Throughout the week, the postal operator’s share price barely changed as two deals worth €12,000 were executed. Similarly, Malta International Airport plc shares ended the week flat at €1.92.

On the upside, Malita Investments plc gained four per cent as one transaction of 14,000 shares in Thursday’s session sent the share price to €0.52; earlier, the equity traded at a weekly low of €0.50.

Plaza Centres plc traded flat at €0.56 while significant demand for Tigné Mall plc shares left the equity’s price intact at €0.51 despite some mid-week minimal price movements.

Meanwhile, Simonds Farsons Cisk plc reported a 2.7 per cent rise in revenue for the six months ended July 31, when compared to the same period last year. Pre-tax profit rose 1.7 per cent to €4 million. The board of directors said turnover improved across most of the core business segments, while there was notable increase in turnover in the company’s main imported beverage brands and franchised food retailing. The firm’s exports increased while record tourist arrivals helped to sustain demand for the company’s products.

The board added that gross margins remain under constant pressure due to intense market conditions. A dividend of €0.0333 will be paid on October 18 to all registered shareholders as at close of trading on Friday.

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.

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