The Malta Stock Exchange (MSE) index ended March 5.6 per cent in the red – its worst monthly performance in over three years – while on a quarterly basis the index closed down 7.1 per cent. This followed a series of hefty falls in financial equities, as well as the share prices of International Hotel Investments plc (IHI) and Go plc – which together account for over three-fourths of the index. On the other hand, shares of RS2 Software plc, Malta International Airport plc (MIA), Simonds Farsons Cisk plc (SFC) and Maltapost plc traded at record highs during the month.
Last week, 16 equities were negotiated, of which four advanced, eight fell, and another four closed unchanged – which led the MSE index to drop by 2.05 per cent. Turnover stood at €1.5 million – a 26 per cent rise over the previous four-day trading week.
Bank of Valletta plc (BOV) shares were again subject to selling pressure, as the equity shed one per cent. By mid-week, BOV’s price was trading at a six-month low of €2.18, and settled a shade higher at €2.199 by Friday. A total of 223,287 BOV shares were traded in 114 deals, accounting for a third of total turnover.
Since January, BOV shares have fallen 8.7 per cent, with most of the retreat occurring this month.
HSBC Bank Malta plc shares ended the week down by 0.8 per cent after 27 deals of 34,931 shares. At €2.38, the banking equity is now trading close to a five-year low.
Since January, HSBC shares have lost 8.5 per cent of their value.
Lombard Bank plc shares lost 2.4 per cent over the week and closed the first quarter of the year down by 8.3 per cent.
A total of 36,000 Lombard shares were traded in 14 deals.
Fimbank plc shares closed unchanged on relatively thin volume, as 8,383 shares changed hands in three deals.
The equity is the second worst performer so far this year, having fallen 13.6 per cent.
Heading the list of fallers last week was another financial services provider, Middlesea Insurance plc whose share price plummeted 8.6 per cent after two deals of just 414 shares.
IHI shares are currently leading the list of losers, with a year-to-date loss of 18.7 per cent, most of which occurred in March, following an eight per cent drop last week after three deals of 4,653 shares.
Telecommunications firm Go plc continued its losing streak when it contracted by a further 2.4 per cent to reach a six-week low of €2.
On Friday, Go announced that it had entered into a share purchase agreement with Cablenet Communications Systems Ltd and its registered and beneficial owner, Nicholas Shiacolas, for the purchase of 25 per cent of Cablenet’s issued share capital in exchange for a convertible loan of €12 million.
The loan granted to Cablenet will bear no interest until the end of 2017, with the option to convert the loan into equity, such that Go gains a 45 per cent stake in Cablenet. The agreement also gives Go the opportunity to acquire majority control of the company in future.
Go shares are among the top performing equities so far this year, with a gain of 9.6 per cent.
In the IT sector, RS2 led its peers last week as it settled at yet another record high of €2.43, following eight deals of 12,100 shares.
In March, RS2’s share price rose 2.8 per cent to lock in a 6.6 per cent gain over the quarter.
Crimsonwing plc lost a minimal 0.1 per cent after a single deal of 3,000 shares.
6PM Holdings plc closed unchanged, after a 4.2 per cent loss in last Thursday’s session was completely reversed on Friday. A total of 28,500 shares were exchanged in six deals.
6PM’s board is due to meet on April 14 to consider and approve the firm’s audited financial results for the year ended December 31, 2013 and to consider whether to recommend the payment of a dividend for approval at the company’s annual general meeting.
Both SFC and Maltapost shares regained their all-time high closing prices – first reached some months ago – of €3 and €1.15 respectively.
SFC’s price rose 0.3 per cent after three deals of 3,500 shares.
A substantially €156,000 worth of Maltapost shares were traded in 15 deals, pushing the equity’s price up by 4.6 per cent.
The shares of closed-ended collective investment fund Santumas Shareholdings plc were second to none as a single deal of a mere 86 shares led their price to shoot up by 20 per cent.
MIA hit at an all-time high of €2.28 but settled €0.03 lower by Thursday’s session as 58,394 shares were traded in 12 deals.
On Monday, Medserv plc announced that its subsidiary, Medserv Operations Ltd, had won two contracts to provide integrated logistic support services to two international oil companies operating offshore North Africa from its base in Malta.
The company’s share price closed unchanged at €1.3 after the second highest turnover, worth €434,000.
After Friday’s closing session, Medserv announced its audited financial results for the year ended December 31, 2013. Its pre-tax profit stood at €132,000, as opposed to a €1.15 million loss in 2012. The board are recommending the payment of €0.024 net dividend per ordinary share.
Midi plc closed unchanged after four deals of 128,570 shares.
In the corporate bond market, activity was spread over 17 issues, of which seven rose in value, six edged lower, while four closed unchanged. Turnover shrunk by 37 per cent, from €842,000 to €533,000.
The recently listed Six per cent AX Investments plc euro 2024 accounted for 57 per cent of total trading value.
Last Thursday, Pavi Shopping Complex plc announced that on March 21, the company repurchased a total of 232,344 Seven per cent Secured Bonds 2014-2017 from its shareholders, which are all being cancelled.
In the sovereign debt market, out of the 23 active issues, eight lost ground, 14 inched higher, while one closed unchanged.
Most of the losses and gains were in short-dated and long-dated issues respectively.
Turnover fell from €24.55 million in the previous week, to €5.14 million.
The week’s most liquid issue was the 3.75 per cent MGS 2017 (IV) in which there was a single trade of two million nominal.
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.