The Malta Stock Exchange (MSE) index retreated from the previous week’s rebound, easing 0.75 per cent lower to 3,302.525 points – a few points above its fresh record 14-month low of 3,293.636 points last Thursday. Dragging the index lower were shares of International Hotel Investments plc (IHI), HSBC Bank Malta plc, and RS2 Software plc – which more than outweighed gains by Bank of Valletta plc (BOV), Fimbank plc and Malta International Airport plc (MIA).
In the equity market, gainers, losers and non-movers were equally spread across the 15 traded issues, reaching a total turnover of €1.16 million – a 32 per cent increase on a week-on-week basis.
In the banking sector, the most liquid security was once again that of BOV, representing 28 per cent of total trading value. The banking equity’s share price gained two per cent to €2.09, after failing to sustain an intra-week high of €2.126.
Fimbank headed the list of gainers as its share price jumped 6.9 per cent following one deal of just 200 shares after a month of inactivity. The bank announced that its board of directors is due to meet on August 5 to consider and approve the interim financial results for the six months ended June 30 and to consider an interim dividend.
Trading in the opposite direction was HSBC, whose share price fell 1.1 per cent, after 103,047 shares changed hands in 37 deals. In intra-week trading, HSBC shares also traded at a multi-year low of €2.
One deal of just 54 shares in Lombard Bank Malta plc left its price unchanged at €1.465. The company’s board of directors will meet on August 20 to consider and approve the group’s interim results for the half-year ended June 30.
The index’s negative performance was greatly impacted by two deals of 1,861 IHI shares which dampened the equity’s price by a hefty 7.9 per cent. The last time IHI shares closed at €0.70 was in May 2011.
RS2 fell by 3.8 per cent last week, after recouping two per cent from its six-week low of €2.45 last Tuesday. The IT equity closed the week at €2.50 over the second highest trading value, worth €291,000.
Crimsonwing plc traded flat at €0.81 on a relatively much lower volume of 8,198 shares. Last Tuesday, the company announced that its board of directors is to meet on Thursday to consider and approve the annual financial results for the year ended March 31.
Last week’s second top performer was MIA, after four deals of 13,500 shares lifted the equity’s price by 2.5 per cent ahead of the company’s interim results due to be announced by the end of the month.
Go plc continued to surge higher, reaching a fresh 52-month high of €2.226 in intra-week trading, to then settle lower at €2.21, a 0.5 per cent weekly gain after 20 deals of 81,167 shares. Mid-week, the company announced that Go will be exercising its option to convert into equity the interest-free loan originally made available to Forgendo Ltd. This loan was used by Forgendo to participate in the share capital increase in Forthnet SA.
Shares of Medserv plc rose, as one deal of 20,000 shares strengthened the equity’s price by 1.6 per cent to €1.27 – a one-month high.
One deal of a mere 400 shares in Plaza Centres plc dragged its price down 5.1 per cent, following two weeks of inactivity.
Malita Investments plc retreated from its record high of €0.56 reached the previous week, as three deals of 112,000 shares led to a 1.8 per cent drop in price.
The week’s other non-movers were Simonds Farsons Cisk plc, Loqus Holdings plc, and Midi plc. The latter announced that its board of directors will meet on August 26 to consider and approve the interim results for the six months ended June 30.
In the corporate bond market, 21 issues were traded, of which 13 inched higher, two lost ground, while six closed unchanged. Total turnover shrank by eight per cent, to €1.15 million. The recently issued 5.3 per cent Mariner Finance plc unsecured euro 2024 was submitted to the trading floor and closed 2.6 per cent higher by the end of the week.
Meanwhile, Tumas Investments plc announced that the Malta Financial Services Authority approved the issue of a five per cent unsecured bonds due in 2024, with a nominal value of €100 per bond and an aggregate principal amount of €25 million. The issuer opted to exercise its right to redeem the €25 million 6.25 per cent bonds due in 2014-2016 prior to the final date of maturity in terms of the prospectus dated June 10, 2009. The new bonds are guaranteed by Spinola Development Co. Ltd (SDC). SDC’s business has to date principally comprised the development, management and operation of the Portomaso complex. SDC is the owner of the site on which the Portomaso complex is built. SDC effectively owns 100 per cent of the share capital of Portomaso Leasing Co. Ltd, Halland Developments Co. Ltd and, as of March 2011, 99 per cent of Premium Real Estates Investments Ltd.
In the sovereign debt market, 26 issues were active, whereby long-dated stocks continued to rise in value as opposed to short-dated ones. Turnover value rose to €13.71 million, up from €5.96 million traded the previous week. The two most traded issues were the 5.5 per cent MGS 2023 (I) and the 4.3 per cent MGS 2033 (I) r, with turnover values of €3.73 million and €3.46 million, respectively.
Rising prices across most government bonds was in line with the 10-year European benchmark, which witnessed further declines in yield to 15-month lows in the region of 1.2 per cent – reflecting a flight to safety following last week’s news of a missed debt payment by Portugal’s second largest bank by market value – Banco Espirito Santo SA – which later assured investors there was nothing to worry about given the bank’s solid capital levels and comfortable margin, above that required by the regulatory minimum.
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.