The Malta Stock Exchange (MSE) index rebounded from its 14-month low and 10th weekly loss, mainly as a result of significant gains by telecoms company Go plc – reflecting an announcement released last Tuesday – and to a lesser extent, through gains registered in HSBC Bank Malta plc shares. However, poor performances in the technological sector and Malta International Airport plc (MIA) stymied the index from settling higher. The index recovered 0.53 per cent to close the week at 3,327.349 points.

Trading activity was spread over 16 shares, of which gainers and losers tallied at five, while six closed unchanged. Turnover increased by 19 per cent to over €836,000.

In the financial services sector, HSBC was the only equity to register a change in its share price, after 14 deals of 19,792 shares led to a one per cent gain from its multi-year low the previous week. Intra-week, the banking equity reached a high of €2.05 but failed to sustain it. Since January, HSBC shares are down by 13.2 per cent. The bank is expected to announce its interim financial results in a month’s time.

Bank of Valletta plc (BOV) shares were active over the week’s highest turnover, worth €279,000, with deals struck in the €2.01 to €2.063 price band – a 13-month low. By the end of the week, however, BOV’s share price converged back to €2.05 – a 14.9 per cent fall on a year-to-date basis.

Meanwhile, one deal of just 1,000 Lombard Bank Malta plc shares left its price intact at €1.465.

Similarly, Middlesea Insurance plc closed unchanged, as a deal of a mere 200 shares was struck at €0.88.

Go plc, whose shares jumped by 7.8 per cent to a record 51-month high of €2.2, was second to none. This represents the equity’s sharpest weekly increase in a year, as it was buoyed by a company announcement issued by Forthnet SA – in which Go has an indirect shareholding through Forgendo Ltd, its joint venture with Emirates International Telecommunications Malta Ltd. Forthnet announced that it has received a non-binding offer by OTE SA, a dominant telecommunications provider in Greece, to acquire the activity of Nova for a consideration in the range of €250 to €300 million, excluding debt and cash. Nova operates Forthnet’s pay TV services. Forthnet’s board of directors will be evaluating the offer and inform the investing public accordingly.

Go shares were negotiated over the second highest turnover for the week, worth €221,000.

Medserv plc was also active over a considerabe volume, in which seven transactions of 169,560 shares were struck – resulting into a 2.5 per cent gain, and more than offsetting its previous week’s1.6 per cent loss.

In the IT sector, Crimsonwing plc headed the list of fallers, with a 3.6 per cent drop following four deals of 11,802 shares – which dragged the company’s share price to a three-month low. The equity is down by 4.7 per cent on a year-to-date basis.

Its peers, RS2 Software plc and 6PM holdings plc, closed the week down by 1.9 and 1.3 per cent respectively. RS2 was negotiated in three deals of 2,500 shares. RS2 shares are up 21 per cent since January. Meanwhile, 2,480 6PM shares changed hands on two deals. Despite last week’s fall 6PM shares have appreciated by 10 per cent year-to-date.

After three months of inactivity, Grand Harbour Marina plc traded once as 1,000 shares changed hands, closing the week up by 2.8 per cent.

Malita Investments plc settled at a record high of €0.56. The special purpose vehicle was traded in two deals of 8,910 shares, pushing its share price up 1.8 per cent. The equity is up 5.7 per cent year-to-date.

Trading in MIA shares wiped out most of its gains during June, as 11 deals of 14,960 shares dragged the company’s share price down by 3.1 per cent. On Thursday, the company announced its traffic results for June, which once again were positive across all source markets. During the first six months of the year, MIA hosted a total of 1.8 million passengers, representing a 7.7 per cent increase over the same period last year, and three per cent when comparing June with the same month last year. Since January, MIA shares are up by 2.8 per cent.

The week’s worst performer was Santumas Shareholdings plc, whose shares plummeted by 7.5 per cent on two deals of 4,205 shares.

The other non-movers for the week were International Hotel Investments plc, Simonds Farsons Cisk plc, and Midi plc.

In the corporate bond market, trading activity was spread across 21 issues, of which nine rose in value, three edged lower, while another nine traded flat. Turnover value shrank by 10 per cent, to just under €1.25 million.

On Monday, Mariner Finance plc announced the allocation policy regarding the 5.3 per cent unsecured bonds maturing in 2024. As a result of significant interest by the investing public, the €5 million over-allotment option was utilised, and thus a total of €35 million will be allocated. With regard to the €15 million allocated to the public, the company will be satisfying the first €5,000 in full and a further 19.475 per cent of any remaining balance on all such applications – rounded to the nearest €100. Any refunds will take place by tomorrow, while interest has started to accrue as from last Friday.

In the sovereign debt market, total turnover stood at €5.96 million – down from €26.24 million the previous week. Out of the 23 traded issues, 15 rose while eight declined. The 4.3 per cent MGS 2033 (I) r was the most liquid issue, accounting for 44 per cent of total turnover.

The rising prices across most issues reflects the decline in yields in the euro area, after European Central Bank president Mario Draghi said interest rates will remain at current levels for an extended period. The ECB has kept the benchmark interest rate unchanged at 0.15 per cent and imposed a 0.1 per cent charge on deposits held with the ECB beyond a certain threshold. Yields continued to fall to record lows on speculation that the ECB’s monetary stimulus will continue to support demand for such securities.

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.

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