The Malta Stock Exchange (MSE) index extended its previous week’s 1.24 per cent gain by a further 1.4 per cent, to close Friday’s session at its six-week high of 3,391.085 points. Pushing the index higher were International Hotel Investments plc (IHI), Bank of Valletta plc (BOV) and Go plc shares, which more than offset declines in HSBC Bank Malta plc and Maltapost plc shares.
Trading activity was spread over 13 issues, whereby gainers and non-movers tallied at five, while three closed unchanged. Total turnover in the equity market stood at €970,000, a 24 per cent increase on the previous week.
Much of the trading was concentrated in the banking sector, representing 60 per cent of total trading value. BOV shares were traded over the highest turnover for the week, worth €459,000, which more than offset the previous week’s one per cent decline. The banking equity reached an intra-week high of €2.12, but then settled lower at €2.10.
Its peer, HSBC, fell out of favour, as 20 deals of 44,877 shares resulted in a 1.4 per cent decline. This followed a 4.5 per cent increase the week before. Investors are awaiting the half-yearly results that are due to be announced on August 4.
Meanwhile, Lombard Bank Malta plc settled an 11-week high of €1.50, following six transactions of 16,026 shares, while no movement was recorded in price of Fimbank plc in which there was a single deal of just 2,107 shares.
In the same line of business, Middlesea Insurance plc was active on thin volumes, as 5,000 shares changed hands in one deal, leaving the equity’s price intact at €0.88.
The index’s positive performance was mostly brought about by IHI’s 8.6 per cent surge in price, after two transactions of 5,209 shares were struck. IHI accounts for around 14 per cent of the index’s total market capitalisation, making it the third largest security on the MSE after BOV and HSBC.
Telecommunications company Go plc settled at a fresh multi-year high of €2.36, a price it had last reached in August 2008, as momentum continued to build up following recent positive announcements by Greek internet service provider Forthnet SA. Go shares were active in 17 deals of 53,332 shares.
In the IT sector, trading in RS2 Software plc pushed its share price up by two per cent to close at a three-week high of €2.55. Trading in the equity amounted to the week’s second highest turnover, worth €149,000.
On the other hand, thin volumes were traded in Crimsonwing plc, as one deal of 6,621 shares was negotiated at €0.82. Last week, in its interim directors’ statement, the company reported that for the first quarter of its financial year (April 1 to June 30), it is maintaining its good progress. Like-for-like, first quarter revenues are marginally higher than last year at €5.3 million. During the quarter, the company said it had made excellent progress on new business sales across the Dynamics (ERP) and the eCommerce propositions. The company also said that the trading outlook for the next quarter remains positive.
Maltapost plc headed the list of fallers with a 2.6 per cent loss in value to €1.12, after recovering from an intra-week low of €1.10. The postal services company was active in 10 deals of 33,963 shares.
The week’s other faller was Malita Investments plc, whereby 98,500 shares changed hands in four deals, completely reversing the 1.8 per cent advancement registered the week before.
The week’s other non-movers were Malta International Airport plc and Island Hotels Group Holdings plc, both of which were traded on thin volumes.
Meanwhile, last Monday, Plaza Centres plc reported its interim results for the six-months ended June 30. The company registered a pre-tax profit of €715,000, as opposed to €605,000 during the same period last year. Revenue for the period stood at €1.15 million, a 10.7 per cent increase. Despite these positive results, no trading took place in this equity.
In the corporate bond market, 23 issues were traded, of which seven gained ground, another seven declined, while nine closed unchanged. Turnover rose by 16 per cent to €889,000, with a significant portion being traded in the recently issued 5.3 per cent Mariner Finance plc unsecured euro 2024 which rose by 0.5 per cent to close at €103.
In the sovereign debt market, mixed trading was noted with marginal gains across medium-term issues, while minimal declines were registered in short and long-dated issues. A total of 25 issues were negotiated over a turnover of €31.25 million, down by 6.3 per cent from the previous week. The 4.3 per cent MGS 2033 (I) r was the most liquid issue, with a turnover of €8.95 million, or 29 per cent of total turnover.
Last Thursday, the Treasury announced the prices of the new Malta Government Stocks - the Two per cent MGS 2020 (V) was priced at €101.75, to yield 1.699 per cent, whereas the longer-dated 4.1 per cent MGS 2034 (I) was priced at €100.75, to yield 4.045 per cent. Applications can be submitted as from tomorrow. Applications close on Wednesday, or earlier, at the discretion of the Accountant General.
Last Tuesday, the government published Legal Notice 25 regarding the Investment Registration Scheme 2014. Local residents and companies with eligible assets that were generated from income (including capital gains) that had never been declared – and are subject to Maltese tax – are to register the assets by the end of September with licensed financial intermediaries.
Eligible assets will be regularised against a registration fee of 7.5 per cent of the value of the asset, while a rate of five per cent will apply in the case of assets held abroad which are repatriated and invested locally.
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.