The outlook on the local stock market remained positive as the Malta Stock Exchange index closed higher for the third week in succession at 3,539.86 points – touching 3,550 points on Thursday, a level last reached back in March 2011.
Most traded equities closed the week higher, led by IT equities 6PM Holdings plc and RS2 Software plc, while on the downside, Bank of Valletta plc (BOV) shares shed 1.2 per cent as the banking equity turned ex-div last Friday. The local equities index is up by 10.2 per cent year-to-date.
In terms of activity, a value of over €1.6 million was traded in 14 equities, of which nine gained value while five ended the week in the red.
BOV shares were the most active as demand increased in the week’s first four sessions of the week when the equity traded with entitlement to the next dividend payment due on December 20, if approved at the forthcoming annual general meeting. After starting the week lower, the equity moved to positive territory and traded at a weekly high of €2.68 as investors sought entitlement to the next dividend payment.
But on Friday, as the equity turned ex-div, it gave back some of the gains of the past two weeks to end the week at €2.629. BOV shares still enjoy a positive 21 per cent rally since the beginning of the year.
RS2 shares followed, with over €400,000 worth of trading, ending the week on a high with a 2.2 per cent gain to close at €2.35 after hitting at a weekly low of €2.25. Demand was rather weak last Monday but it rose significantly in the remaining sessions as a total of 182,000 shares were traded in 37 transactions.
In an interim directors’ report on Thursday RS2 said that on the licensing part of its business, the company is in advanced negotiations to conclude various agreements with new clients.
On the service provision and managed services side, healthy business prospects for new customers are in the pipeline. RS2 also said it is considering opening a support and sales office in Latin America in 2014.
Gains in the share price of both Go plc and International Hotel Investments plc (IHI) contributed significantly the index’s positive performance. Go plc shares gained 2.6 per cent, or €0.04, to end the week at €1.58 after touching a weekly high of €1.595. A total of 18 transactions worth €164,000 were executed. Thin trading in IHI shares sent the equity’s share price 1.3 per cent higher to close at €0.77.
HSBC Bank Malta plc shares were among last week’s gainers, up 0.4 per cent to end the week at €2.66 as 21 transactions worth €200,000 were executed. There were no significant price movements as the banking equity was active in four trading sessions.
Lombard Bank plc shares shed 1.5 per cent, or €0.029, but on much lower volumes than those of its larger peers. A total of 4,700 shares changed hands in two deals as the equity ended the week at €1.87.
After trading hours last Friday, Lombard Bank issued an interim directors’ statement pointing out that it had not experienced any material change in its loan book or deposits. It added that credit quality remained within the bank’s set parameters and that interest margins were healthy, resulting in a positive trend in operating income.
However, it warned that the group’s results are expected to be impacted by higher credit impairment allowances, resulting from sectorial exposures in view of anticipated changes in local and European regulation.
6PM shares gained four per cent following three transactions of 9,400 shares. The equity, whose share price has more doubled this year, traded at a weekly low of £0.605 but closed the week at £0.63.
The equity moved higher on Friday after 6PM reported that business growth has been achieved as planned and the company directors are focused on profits to be able to recommend the distribution of dividends at the forthcoming annual general meeting. It also added that monthly profits continued to be registered, and as a result, the group has been in profit for over two years.
Meanwhile, Tigné Mall plc shares shed 1.4 per cent to close at €0.505 as 179,000 shares were traded in five deals.
Conversely, Plaza Centres plc edged one per cent higher to close the week at €0.565.
On the downside, Malta International Airport plc (MIA) shares wiped off the two per cent gain recorded the previous week as the equity returned to the €2.10 level. Throughout the week, the equity’s price barely fluctuated as 12,300 shares were traded.
In an interim directors’ report issued last Thursday, figures showed that passenger movements in the first 10 months rose 9.9 per cent over the same period last year. The company expects improved traffic results in the year’s last two months while passenger movements are expected to be in excess of 3.9 million. The airport operator added that by the end of 2014, occupancy at Skyparks Business Centre is expected to reach 95 per cent.
Maltapost plc shares gained 2.8 per cent to close the week at an all-time high of €1.12 as two deals of 8,000 shares were executed. The postal operator’s share price is up 32 per cent over the past 11 months.
Malita Investments plc shares closed almost flat at €0.532 after touching a weekly high of €0.54.
Similar trading volume in Middlesea Insurance plc and Simonds Farsons Cisk plc shares sent both equities higher. The insurance firm’s equity gained 2.4 per cent to close at €0.85 while the food and beverage company gained 1.8 per cent to end at €2.90.
In the Malta Government Stocks market, a total value of €4.9 million was traded. The medium-dated 6.6 per cent MGS 2019 was the most traded issue. It was followed by the 7.8 per cent MGS 2018 as three deals worth €1.3 million were executed. Both issues ended the week with a slight increase in price.
Activity in corporate bonds soared to €700,000 with the 5.6 per cent Global Capital 2014/16 bond marking the best performance with a 5.88 per cent gain.
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.