Trading volume in Malta Government Securities (MGS) more than doubled this week after the Treasury announced that the government will be offering two new issues to the general public. The two new issues shall in the aggregate be of €100 million subject to an over-allotment option of €80 million. The new issues being offered to the public have a coupon of two per cent and 4.1 per cent and will mature in 2020 and 2034 respectively. The offer price will be announced next Thursday and applications can be submitted from July 28 until July 30, 2014, or earlier at the discretion of the Accountant General.
Following this announcement, some profit taking was witnessed across all maturities as investors benefited from the surge in bond prices in the past few years. A total of €33.4 million was dealt across 26 MGS issues. The recently-issued 4.3 per cent MGS 2033 was the most traded issue, with turnover reaching €14m across 237 deals.
In the equity market the Malta Stock Exchange index returned to positive territory, closing the week with a 1.2 per cent gain after last week’s 0.8 per cent drop. This week’s gain was the second highest since the beginning of the year, with sentiment across local equities taking a turn for the better as eight out of 12 traded equities registered gains. Following this week-on-week gain the year-to-date loss for the MSE index stands at 9.3 per cent as a number of large-cap equities are still sitting on double-digit losses.
The share price of Go plc jumped by four per cent or €0.09 to reach €2.30. The equity ended higher on four out of five trading sessions as volumes were evenly spread with the exception of Thursday’s session, during which trading volume reached nearly 40,000 shares. A total of 68,000 Go shares were traded over 23 deals. On Thursday the telecoms company announced that Forthnet SA – in which Go holds a stake through its joint venture Forgendo – has received a joint non-binding indicative proposal from Vodafone Group Services Ltd and Wind Hellas Telecommunications SA for the possible acquisition of all Forthnet shares not owned by them. On the release of this news, the share price of Goplc jumped by 2.5 per cent and is now up by 26 per cent since the beginning of the year.
In the banking sector, HSBC Bank Malta plc shares posted a 4.5 per cent or €0.09 gain to close at €2.10. The equity seemed to be closing the week with a modest gain when yesterday its share price surged, albeit trading merely 4,600 shares. Despite this week’s gain, HSBC shares are down by 10.3 per cent year-to-date.
Bank of Valletta plc shares declined by one per cent to end the week at €2.07 after touching a weekly high of €2.12. A total of 59 trans-actions worth €0.3 million were executed, with the bulk of trading taking place during the opening three trading sessions.
Middlesea Insurance plc closed flat at €0.88 as 3,530 shares were traded on three trading days. Yesterday, the insurance group announced that for the first six months of 2014 profit before tax reached €8.21 million, up from €6.4 million for the same period in 2013. The company reported that MSV Life, the group’s life insurance arm, was the main contributor while the general business returned satisfactory results, given the highly competitive market. The company registered a 12.9 per cent increase in turnover, while gross premium written increased by 17 per cent during the first half of 2014. The company’s share price is down by two per cent since January.
On Monday Global Capital plc announced that at the annual general meeting on July 11, 2014 the shareholders approved the company’s accounts and the reports of the Directors and Auditors for the year ended December 31, 2013.
In the IT sector, Crimsonwing plc shares posted a 1.2 per cent gain on thin trading as its share price returned to the €0.82 level. On Thursday the IT firm announced its financial statements for the year ending March 2014. The company reported that during the period April 2013 to March 2014 revenue grew by 13 per cent to €20 million, up from €17.8 million a year earlier.
RS2 Software plc shares traded flat at €2.50 as 26,500 shares were dealt over 10 transactions. Likewise, Simonds Farsons Cisk plc shares closed flat at €2.95 as four deals of 4,000 shares were transacted.
Trading in Santumas Shareholdings plc sent the equity’s price soaring by 7.6 per cent to €1.99, while Plaza Centres plc shares recorded a similar gain as the equity closed the week at €0.60. The share price of the shopping complex is up by 4.4 per cent this year.
On improving volumes, Medserv plc gained 2.4 per cent to end the week at €1.30, while shares in Malta International Airport plc posted a one per cent gain to close at €2.30. Over 17,000 MIA shares were traded in the first three sessions while no trades were executed thereafter.
Malita Investments plc shares gained two per cent to close at €0.56. On Thursday the company announced that the board of directors is scheduled to meet on Tuesday, July 29 to consider and approve the company’s interim financial statements for the six months ended June 30, 2014 and to consider the payment of an interim dividend.
In the corporate bond market, turnover declined to €768k across 26 issues. The 7.15% Mediterranean Investment Holdings plc Euro 2015-2017 issue headed the list of fallers, with a 1.8 per cent decline to €99.96, while the 6.5% Island Hotels Group Holdings plc 2017-2019 registered a 1.5 per cent gain at €103.55.
This article, which was compiled by 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 is 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 Financial Advisors Ltd at 67, Level 3, South Street, Valletta, on telephone 2122 4410 or e-mail info@jesmondmizzi.com.