Last week, the Malta Stock Exchange (MSE) index halted a three-week losing streak, locking in a 0.5 per cent gain to 3,295.511 points. The rebound from the previous week’s 16-month low follows gains in the banking sector, Malta International Airport plc (MIA), Go plc, and to a lesser extent, RS2 Software plc – which closed at a fresh record high. The two main equities holding back the index were International Hotel Investments plc (IHI) and Simonds Farsons Cisk plc (SFC). During August, most of July’s 2.82 per cent gain was erased by significant losses in IHI, Fimbank plc and MIA.

Turnover in the equity market was marginally higher than the previous week, with a total of €1.18 million spread over 16 issues, of which nine rose in value, five lost ground, and two closed unchanged.

Banking equities made up 36 per cent of total trading value, with Bank of Valletta plc (BOV) shares accoun­ting for the largest volume. BOV rose 1.7 per cent, after failing to sustain a nine-week high of €2.17 intra-week. Over the week, 49 deals worth €210,000 were struck. In August, BOV was the most traded security as total turnover reached €985,000.

HSBC Bank Malta plc rose 0.8 per cent to completely recoup its losses during the month despite disappointing interim results announced in the first week of August. HSBC shares were the third most traded equity during the month, worth €669,000, including 23 deals of 67,782 shares struck last week.

Lombard Bank Malta plc partially reversed the previous week’s 3.1 per cent decline, as two deals of 40,000 shares led to a 0.7 per cent gain. But it lost 8.2 per cent in August due to a big drop in net interest income in the bank’s interim results.

Fimbank plc shares marginally rebounded from the previous week’s multi-year low of $0.65, as the equity’s price rose 0.8 per cent five after deals of 40,759 shares. But Fimbank shares lost 12.4 per cent in August, almost matching the price of July’s rights issue. During the month, the bank published its interim results for the period ended June 30. Fair-value gains on previously held investments and lower losses from trading assets and financial instruments helped the bank’s improved results, while higher impairment losses stymied them.

Middlesea Insurance plc retreated by 2.1 per cent on one deal of just 71 shares struck last Monday but it closed the month up by 6.9 per cent at €0.93. In another trading session, 500 shares changed hands but left the share price intact.

SFC shares shrank 5.6 per cent on thin volume. The fall accounts for most of the equity’s 5.9 per cent loss this month. The share price settled at its 15-month low of €2.70.

Go plc shares rose 1.6 per cent after the week’s highest turnover, worth €222,000. The equity reached a six-year high of €2.49, before settling marginally lower at €2.489. Go shares rose 4.6 per cent this month, reflecting positive interim results published mid-month, and positive news showing growth in Forthnet SA, in which Go has an indirect stake through Forgendo Ltd.

The MSE index could have been negatively impacted had IHI’s share price not recovered some of last Wednesday’s 4.6 per cent drop to close the week down by 1.5 per cent. IHI’s performance this month has had a major impact on the index’s 2.8 per cent loss, as 20 deals of 88,054 shares dragged the equity’s price down by 15.6 per cent, reflecting a drop in demand for IHI’s hotels in St Petersburg and Tripoli.

A deal of 2,000 MIA shares recouped the previous week’s 2.2 per cent fall in the share price. The equity ended August down by 4.3 per cent, partially reflecting the fact that it turned ex-dividend on August 13. MIA shareholders as this date will receive a gross dividend of €0.0462 per share on September 12.

RS2’s share price rose 1.1 per cent to a record high €2.75. The equity rebounded from July’s fall, gaining 6.2 per cent on the month’s second highest turnover, worth €756,000. Last Thursday, RS2 published the group’s interim results for the six months ended June 30. It made a pre-tax profit of €2.96 million, compared to €5.35 million last year.

6PM Holdings plc fell two per cent after a deal of 245,000 shares. The 2.7 per cent monthly decline left 6PM shares at a 10-week low, despite positive interim results announced earlier this month.

There was no price change in Crimsonwing plc shares last week, but July’s gains were reversed in August. Malita Investments plc’s share price was also static last week, closing down by 1.8 per cent in August. Maltapost plc shares fell 1.8 per cent after two deals of 3,476 shares cancelled the month’s gains.

Tigné Mall plc shares gained 1.9 per cent to close €0.005 shy from their all-time high of €0.53. On Wednesday, the company’s board approved the company’s interim financial statements for the half-year ending June 30. The company made a pre-tax profit of €949,000, compared to €680,000 in 2013. The directors approved an interim net dividend payment of €0.0063 per share.

Santumas Shareholdings plc rose 10 per to €2.20 after a deal of a mere 38 shares. Last Monday, the company announced that its board will be meeting to consider delisting the company as a collective investment scheme and relisting it as property holding company.

Last week, Midi plc and Medserv plc published their interim results for the six months ended June 30. Midi made a pre-tax loss of €1.7 million, compared to a €2 million loss in 2013. Medserv made a pre-tax profit of €542,000, compared to €566,000 in 2013. No interim dividends are being recommended. No trading took place in these equities last week.

In the corporate bond market, a total of €887,000 was traded in 24 issues, up from €225,000 the previous week. Half the traded issues edged higher, whereas non-movers and losers tallied at six. The 7.15 per cent Mediterranean Investment Holdings plc euro 2015-2017 was once again the week’s worst performer, shedding 4.8 per cent, to €89.5. Trading higher was the Five per cent Tumas Investments plc unsecured euro 2024 issue, which closed up 1.2 per cent at €104.26.

In the sovereign debt market, most of the 25 traded stocks dampened yields further as prices continued their upward trend. Total turnover shrank by 41 per cent to €15.94 million, of which €6.34 million were dealt in the long-dated 5.25 per cent MGS 2030 (I) issue.

Trading activity in the local sovereign debt market reflects the yield curve patterns in Europe, with both the 10- and 20-year yields falling as the European Central Bank may be preparing to undertake a new set of monetary measures to stimulate the economy.

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.