The Malta Stock Exchange (MSE) index closed higher for the third week in succession as the outlook towards most traded equities remained positive. However, last week the MSE gained by just a fragile 0.14 per cent to close at 3,476.779 points.
A total of 16 equities were active during the week in which eight edged higher, four fell and another four closed unchanged. Malta International Airport plc (MIA) headed the list of gainers as it appreciated by 3.1 per cent.
The two major banks gained further ground as upbeat sentiment sent their share prices higher. In terms of activity, Crimsonwing plc was the most traded equity as 143,050 shares were exchanged.
Bank of Valletta plc (BOV) shares gained 0.3 per cent last week as the share price closed just shy of €2.48. Demand for the equity increased further as over 112,000 shares were traded in 59 deals worth €300,000. The banking equity closed three sessions in negative territory; however gains on Tuesday and Friday were enough to ensure BOV shares closed the week higher. On Tuesday, the share price gained 1.2 per cent as trading volume jumped to almost 53,000 shares. The equity is up by 14 per cent since January.
HSBC Bank Malta plc posted a gain of one per cent, or €0.025, as the equity ended the week at €2.65 after trading at a weekly low of €2.62. HSBC shares started the week lower but gained in the week’s last two sessions. Turnover for the week amounted to 58,000 shares traded in 27 deals.
Among financial equities, Middlesea Insurance plc shares were the only laggards. The insurance firm’s share price fell six per cent after one thin trade of 200 shares. The equity price has now returned to €0.80.
MIA shares extended their year-to-date gains to 12 per cent, as the airport operator traded higher by three per cent, or €0.06. The increase was a reaction to the September traffic results announced after trading the previous week.
Passenger movements at the airport increased by nearly 11 per cent over the same month last year, while so far this year, passenger movements have increased by nine per cent when compared to the same period last year. The equity price surpassed €2 to close at €2.02 as 18 deals worth €61,000 shares were executed.
In the IT sector, RS2 Software plc closed the week at an all-time-high of €2 as the value of demand for the equity rose almost threefold to €64,000 traded in 19 transactions. Throughout the week the equity traded with minimal price movements.
Last Thursday the company reported that the right given to Barclays Bank plc of termination for convenience of the license agreement for the use of the company’s software for a contract value of £8.5 million has now lapsed and may no longer be exercised.
Furthermore, the company announced that Barclays Bank plc has acquired 10 per of the company’s issued share capital.
Crimsonwing plc shares gained 1.3 per cent to close at €0.78. The equity was the most traded in terms of volume as 143,050 shares changed hands in 13 deals.
Meanwhile, Loqus Holdings plc shares shed 28.6 per cent as the share price dropped to €0.10 after two trades of 7,500 shares.
Likewise, Go plc shares gained 1.7 per cent, or €0.025, as 18 deals worth €30,000 were executed.
The share price of the telecoms firm closed at €1.495 after having traded at a weekly low of €1.44 and a high of €1.50.
Since the beginning of January it has gained 26 per cent.
On a negative note, International Hotel Investments plc fell by 2.2 per cent to €0.84 after one deal of 10,000 shares.
Another deal of 86,563 shares in Plaza Centres plc left the equity’s price intact at €0.56.
Similarly, Malita Investments plc closed flat at €0.52 as the equity’s price barely moved intra-week while Midi plc closed unchanged at €0.24 after trading at a weekly high of €0.25.
Medserv plc returned to positive territory with a gain of 1.5 per cent, or €0.05, to close at €3.30 while Maltapost plc fell two per cent as the share price returned to €1.05.
Simonds Farsons Cisk plc rose by 1.8 per cent to €2.80.
Turnover in the corporate bond market amounted to just under €1.6 million, spread across 13 issues, of which two gained and two lost value, while nine traded unchanged. The 5.6 per cent Global Capital plc 2014-2016 stumbled by a significant 3.4 per cent.
On the upside, the 7.5 per cent Mediterranean Bank 2019 FI gained 74 basis points to close at €102.75.
On Friday, the directors of Gasan Finance Co announced that an application has been submitted for the approval of the listing authority of a prospectus for the issue of €25 million bonds redeemable between 2019 and 2021. The company has also sought admissibility to listing on the Malta Stock Exchange.
In the local sovereign debt market, 18 issues were active. Once again, yields improved as the Central Bank of Malta revised the prices of Malta Government Stocks lower, as optimism towards a temporary agreement on a short-term extension of the US debt limit increased towards the end of the week.
The long-dated 5.25 per cent MGS 2030 lost 60 basis points while the 4.8 per cent MGS 2028 declined by 55 basis points.
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.