Last week, the Malta Stock Exchange (MSE) index ended a four-week winning streak, closing down 0.23 per cent to 3,670.759 points. The index was dragged lower by stocks in the banking sector, namely HSBC Bank Malta plc and Fimbank plc, as well as telecommunications company Go plc and Malta International Airport plc (MIA). On the other hand, moving in the opposite direction were stocks of Bank of Valletta plc (BOV) and Simonds Farsons Cisk plc (SFC).
Activity throughout the week was spread over 15 equities, of which a third closed unchanged, while those that gained in value outnumbered by one those whose price fell. Turnover for the week shrank by more than 57 per cent, to just under €819,000.
In the banking sector, BOV shares – after adjusting for the issue to shareholders of one bonus share for every 10 shares held – closed up by 1.3 per cent. The bank’s shares also experienced the highest turnover for the week at €404,000, or 49 per cent of total trading value.
The banking equity turned ex-bonus last Wednesday, after which its price was adjusted to a €2.382.
There was considerable selling pressure on HSBC Bank Malta plc shares, with 64,371 being exchanged in 15 deals, pushing the price down to a one-month low of €2.55.
The share price of Fimbank plc suffered the steepest decline, as it fell by two per cent following a single deal of 1,220 shares struck on Friday – eating away all of last week’s 0.5 per cent gain.
It is evident that institutional investors were very active last week, shifting to more cautious investments
Meanwhile, Lombard Bank plc traded marginally higher by 0.05 per cent, on thin volumes traded in a single transaction during Thursday’s session.
Santumas Shareholdings plc was the week’s top-performing stock, soaring by 10 per cent, or €0.20c, on a mere 17 shares.
Shares of Simonds Farsons Cisk plc (SFC), were the second best performers, locking a 1.4 per cent gain – €0.01 shy of their all-time high – traded in three deals of 3,500 shares.
Middlesea Insurance plc advanced by a further one per cent after seven deals of 6,252 shares – a price last reached in September 2011.
One other gainer for the week was the special purpose vehicle Malita Investments plc, which reached an all-time-high as two deals of 14,000 shares led to a 0.9 per cent rise in price.
Go snapped an 11-week streak of gains, as its share price fell by 0.5 per cent. Much of the loss incurred by Thursday was reversed during Friday’s session, when a 1.1 per cent gain was registered.
MIA shares failed to sustain their all-time high closing price of €2.2 reached the previous week when they closed down by €0.02 after nine deals of 23,175 shares.
The only two active stocks in the IT sector were Crimsonwing plc and RS2 Software plc, in which 50,000 and 32,615 shares were traded respectively. The prices of both stocks remained flat throughout the week.
Following the annual general meeting held last Wednesday, Maltapost plc announced the declaration of a final ordinary net dividend of €0.04 per share. The dividend will be paid either in cash or in shares, at the discretion of individual shareholders. The company’s shares traded flat at their all-time high of €1.15.
Other non-movers for the week were Island Hotels Group Holdings plc and Midi plc, as trading volume reached 10,000 and 65,000 shares respectively.
In the corporate bond market, turnover was down by 31 per cent to €362,000, spread over 10 issues. Four appreciated in value, five closed unchanged, while the 6.75 per cent United Finance plc euro 2014-2016 was the only issue to lose ground – down by 0.5 per cent.
As opposed to trading in the equity and corporate bond markets, the sovereign debt market witnessed an eightfold increase in turnover to €65.2 million, as 18 issues changed hands.
Given the volume and number of trades executed, it is evident that institutional investors were very active last week, shifting to more cautious investments.
In total, 83 per cent of the traded issues climbed in value – pushing yields lower.
The most liquid issue was the 3.75 per cent MGS 2015 (VI), accounting for half of total turnover across nine trades, closing up marginally at €105.50.
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.