The Malta Stock Exchange (MSE) index last week advanced by 0.85 per cent – the strongest weekly gain in seven weeks – following two positive sessions on Monday and Friday. The index, which closed at a 34-month high of 3,605.523 points, has gained 12.25 per cent so far this year with one trading session to go.
Aiding to the index’s positive performance throughout the year were stocks in the IT and banking sector, together with substantial gains in telecommunications company Go plc, Malta International Airport plc (MIA) and Maltapost plc. In total, 16 equities gained in value in 2013, while only five registered declines in their share price.
In the two trading days of last week, 16 equities were active, of which six outperformed the index, two closed in the black, two lost ground, while six closed unchanged – with 284,000 shares trading for a value of €469,000.
Heading the list of gainers was Go, which advanced 2.8 per cent after 11 deals of 41,299 shares. The equity’s current price of €1.809 – a 34-month high – makes it the fourth best performing equity of 2013, having gained 52 per cent. Trade in Go shares accounted for more than eight per cent of the index’s total equity turnover for the year of €52.7 million.
The two most liquid equities in terms of trading value were in the banking sector. Trading in Bank of Valletta plc (BOV) shares in 2013 accounted for almost 26 per cent of trading value. Last week, BOV gained a further 1.1 per cent after 27 transactions of 58,936 shares and given its current price of €2.629, it has gained 21 per cent for investors so far this year.
The second most liquid equity was HSBC Bank Malta plc. Similar to BOV, HSBC rose 1.2 per cent last week after nine deals of 5,600 shares, but over the year, the equity has lost 3.7 per cent of its value. HSBC shares represented 14.5 per cent of the total value of turnover in the equity market during the year. HSBC’s high and low prices in 2013 fluctuated between €2.80 and €2.45.
In the same line of business, Fimbank plc and Middlesea Insurance plc closed the week unchanged. On a year-to-date basis, the equities have registered gains of 21.9 and 21.6 per cent respectively. In terms of trading value during 2013, trading in Fimbank shares accounted for 4.1 per cent, whereas Middlesea Insurance accounted for 0.7 per cent.
Last week, both MIA and Maltapost closed at their all-time high prices. MIA appreciated by 2.4 per cent as 11 deals of 10,185 shares were struck. It was the fifth most liquid equity in 2013, with a turnover of €3.8 million, and has so far reaped more than 19 per cent for its shareholders.
Maltapost registered a weekly gain of 1.3 per cent, adding to a year-to-date gain of 35 per cent – with trading activity for the year of 1.34 million shares worth €1.38 million. Maltapost ranks among the top five performers for the year in terms of return.
The top three performing equities this year were all in the IT sector. RS2 Software plc sky-rocketed by 227.6 per cent, with liquidity surging significantly – it currently ranks third, on 11 per cent. The equity’s positive performance is mostly due to new contracts RS2 have been awarded, enabling it to further diversify its market base, together with Barclays Bank plc’s interest in acquiring a 20 per cent shareholding in the IT firm, which was announced at the end of August. RS2’s share price had reached an all-time high of €2.38. Last week, the equity traded flat at €2.28.
6PM Holdings plc completely reversed last week’s 2.9 per cent gain, as its share price fell back to £0.70p – therebys maintaining its year-to-date gain of 135 per cent, spread over a volume of 670,000 shares.
Crimsonwing plc closed the week down by 3.4 per cent, but still returning a yearly gain of over 73 per cent. Trading activity for 2013 accounted for 5.5 per cent of total trading activity.
Simonds Farsons Cisk plc (SFC) closed the week unchanged on a sole trade of 133 shares. SFC ranks tenth in terms of year-to-date performance, with a gain of 14 per cent.
Meanwhile, Plaza Centres plc gained 0.9 per cent on a thin volume of 1,800 shares but has lost of 4.2 per cent of its value so far this year. Trading in the equity accounted for 2.4 per cent throughout the year.
Both International Hotel Investments plc (IHI) and Island Hotels Group Holdings plc (IHG) inched 0.1 per cent higher. IHG was active in four deals of 19,500 shares, and ranks just after SFC, with a return of 13.9 per cent on a year-to-date basis – accounting for 2.3 per cent of total trading value. By contrast, IHI, which during 2013 accounted for 1.7 per cent of trading value, has seen its share price drop by 2.3 per cent.
Two other non-movers for the week were Medserv plc and Malita Investments plc. Year-to-date, Medserv ranks second from the bottom, and more than 14 per cent has been shed off its share price so far this year. Meanwhile, Malita appreciated by six per cent. Medserv and Malita accounted for 1.4 and two per cent respectively of total trading value for the year.
In the corporate bond market only four issues were negotiated, which is understandable considering that activity last week was restricted to just two trading sessions. There were seven deals worth €49,000 and minimal price movements. Total turnover in corporate bonds stands at €33.3 million to date.
Meanwhile, in the sovereign debt market, activity was spread over 15 issues; the majority fell in price, while only three gained ground. Turnover for the week amounted to €1.6 million – 52 per cent traded in the 4.6 per cent MGS 2020 (II) issues. Total turnover for the year stands at €678.8 million.
I wish all readers a prosperous New 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 Jesmond Mizzi at 67, Level 3, South Street, Valletta, or on Tel: 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.