The Malta Stock Exchange index closed higher for the first week in four as banking equities closed in positive territory.

The positive sentiment surrounding the two major banks influenced seven other equities to close higher while five closed in the red.

The index gained 0.5 per cent on the week following three weeks of decline, during which it shed 3.5 per cent. In the banking sector Bank of Valletta plc topped the list of gainers with a 1.7 per cent rise while Malta International Airport plc shares posted a 2.3 per cent gain.

On the downside Simonds Farsons Cisk plc was the main detractor as the beverage company shed almost six per cent on thin volumes during the mid-week session as 550 shares were traded to close at €2.70.

In the banking sector HSBC Bank Malta plc shares remained in recovery mode as the share price returned to the €2 level. HSBC gained 0.8 per cent or €0.015 as 68,000 shares were dealt over five trading sessions.

Bank of Valletta plc shares closed the week at €2.155 as trading volume declined slightly to 98,000 shares. Throughout the week the share price of BOV traded between a high of €2.17 and a low of €2.121.

Lombard Bank plc shares gained 0.7 per cent to close at €1.56 as two trades of 40,000 shares were executed. On similar trading volume FIMBank plc gained 0.8 per cent to close at $0.655.

International Hotel Investments plc shares declined by another 1.5 per cent following last week’s seven per cent decline as investors continue to weight the political situation in Libya and Russia, two countries where IHI has operations. A total of 36,000 shares were traded with the equity’s price fluctuating between a weekly low of €0.62 and a high of €0.65. Year-to-date IHI shares lost 36 per cent.

In the telecoms and IT sector Go plc shares closed just shy of the €2.50 price level at €2.489 gaining 1.6 per cent over the previous week’s close with just over 90,000 shares traded.

Meanwhile Crimsonwing plc closed flat at €0.81 on 12,400 shares while one trade of 245,000 shares in 6PM Holdings plc sent the equity’s price lower by two per cent.

On Thursday, after close of trading the board of directors of RS2 Software plc announced the interim financial statements for the period ended June 30, 2014. Profit before tax stood at €3 million down from €5.3 million during the same period last year. The directors did not recommend an interim dividend. Yesterday, the share price of RS2 gained one per cent or €0.03 closing at a new high of €2.75.

Middlesea Insurance plc was the only financial equity to end the week lower as the insurance firm shed two per cent to return to the €0.93 level.

During the week the board of directors of Global Capital plc approved the half-yearly reports for the six months ended June 30, 2014. The Group registered a loss before tax of €966,897 for the first six months of 2014 compared to a profit of €65,541 for the same period last year. The results were negatively impacted as the Group registered unrealised fair value losses of €0.4 million due to the decline in the MSE index. Moreover, the Group incurred restructuring costs which are not expected to recur. The life insurance arm registered a profit before tax of €0.7 million compared to €0.5 million last year while revenues at the health insurance agency remained similar to those registered in the prior period. The directors added that in line with the Group’s strategy to focus on its insurance business, Global Capital plc will, subject to regulatory approval, be exiting its investment and advisory business.

Malta International Airport plc shares gained 2.3 per cent or €0.05 to close at €2.25 as one deal of 2,000 shares was executed on Thursday.

Tigne Mall plc shares gained two per cent to end the week at €0.525 as the company announced higher interim profits when compared to the same period last year. The company registered a profit before tax of €0.9 million compared to €0.7 million last year. The directors approv­ed an interim net dividend of €0.0063 to be paid on September 26.

Malita Investments plc shares closed flat at €0.54 as minimal price changes were recorded during the week. Over 250,000 shares were traded across six transactions.

Thin trading in MaltaPost plc shares sent the equity 1.8 per cent lower to close at €1.12.

The board of directors of the Midi plc approved the half-yearly financial report covering the six months ended June 30, 2014. The company registered a loss after tax of €0.99 million, compared to a loss €1.66 million registered in 2013. The company is also projecting an operational loss for the 2014 financial year.

On Monday the board of directors of Santumas Shareholding plc announced that it is scheduled to meet on September 1, 2014 to consider the submission of an application to delist the company from the MSE under its current format as a collective investment scheme and to relist the company as a property holding company. On Thursday, the equity’s price jumped by 10 per cent to €2.20.

In the fixed-income market yields on debt issued by the Maltese Government declined across the board as the Central Bank of Malta revised its bid prices higher. The long-dated issues were the most notable gainers with the 4.8% MGS 2028 gaining 1.6 per cent. The recently issues 4.1% MGS 2034 gained 0.7 per cent closing at €105.

In the corporate bond market bonds issued by IHI and its sister company Mediterranean Investment Holdings plc were the main movers with the latter’s 7.15% MIH 2015 – 2017 issue losing five per cent while the 6.25% IHI 2017 – 2020 declining by 1.4 per cent.

This article, which was compiled by Jesmond Mizzi Financial Advisors Limited, 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 Limited at 67, Level 3, South Street, Valletta, or on Tel: 2122 4410, or e-mail info@jesmondmizzi.com.

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