During the four-day trading week, the Malta Stock Exchange (MSE) index failed to remain afloat, closing the week down by 0.89 per cent at 3,327.558 points, as selling pressure reigned on shares of HSBC Bank Malta plc and Bank of Valletta plc (BOV).
Mitigating the banks’ negative impact on the index were equities of Go plc, RS2 Software plc and Malta International Airport plc (MIA), all of which continued to trend higher.
Out of the 12 traded securities, half ended the week in the black, two contracted, while four closed unchanged. Total turnover rose by 59 per cent to €1.32 million, of which 37 per cent were dealt in Go plc. In fact, the telecommunications company continued to climb higher as its share price strengthened by 0.8 per cent to settle at yet another six-year high of €2.51 after 21 deals of 193,754 shares.
In the banking sector, HSBC was the primary laggard as last Friday the equity fell by four per cent to drag the share price down to its three-week low of €1.95. Total turnover for the week stood at €104,000, spread over 21 deals of 51,685 shares. Its peer, BOV, failed to maintain an intra-week high of €2.27, as trading during Friday’s session completely wiped out any weekly gains to close at €2.24.
In the same line of business, Lombard Bank Malta plc traded flat at €1.60 on one deal of 6,493 shares, whereas Middlesea Insurance plc advanced by 1.1 per cent to a three-week high of €0.94.
RS2 shares headed the list of gainers with a 2.2 per cent appreciation in price, to close at their record high of €2.85. Trading in the IT firm’s shares accounted for the week’s third highest turnover worth €172,000.
Trading in MIA led its share price to re-touch its record-high of €2.35 mid-week, but it then settled marginally lower at €2.33 as investors continued to digest the previous week’s traffic result announcement. A total of 58,400 MIA shares were traded in 10 transactions.
Meanwhile, the share price of Simonds Farsons Cisk plc (SFC) continued to recover from losses experienced in July and August to lock in a 1.1 per cent gain on thin volume.
On Wednesday, the company announced that its board of directors is due to meet on September 24 to consider and approve the company’s interim results for the six months ended July 31, and the possible declaration of an interim dividend to shareholders on the company’s register as at October 3.
The last gainer of the week was Plaza Centres plc, whose shares reversed most of the previous week’s 1.7 per cent decline, following one deal of just 84 shares.
Trading in Tigné Mall plc accounted for the second highest turnover of the week, worth €241,000, with deals being stuck in the €0.51 to €0.515 price band.
The week’s other non-movers were International Hotel Investments plc and Medserv plc, both of which were traded on thin volumes.
HSBC was the primary laggard as last Friday the equity fell by four per cent
During the week, Island Hotels Group Holdings plc reported in its interim directors’ statement that all areas of the group are performing well, with the operating results of the five-star hotels and the vacation ownership side of the operation continuing to exceed expectations. The event and retail catering elements of the business are in line with forecasts.
The directors expect that, barring any unforeseen events in the last two months of the financial year, the group’s aggregate operating profits will be better than those registered last year. The equity was not active last week.
In the corporate bond market, half of the 16 traded issues closed unchanged, five ended in positive territory, while three edged lower.
The short-term dated 7.5 per cent Mediterranean Investments Holding plc euro 2015 pared back most of its recent losses, as it rallied by 5.3 per cent to €100.
Meanwhile, the Five per cent Tumas Investments plc Unsecured euro 2024 reached a record high of €106.25, following a single trade of 4,500 nominal.
Out of the total turnover of €1.53 million, €1.08 million was traded in the 6.25 per cent Corinthia Finance plc euro 2016-2019, which settled minimally lower by 0.01 per cent.
United Finance plc announced that its board of directors has resolved by virtue of a resolution to redeem the 6.75 per cent bonds 2014-2016. Meanwhile, the company has submitted an application to the listing authority of the Malta Financial Services Authority for the approval of a new bond issue, the proceeds of which will be used to finance the redemption of the outstanding maturing bonds. The company intends to grant holders of maturing bonds preference to subscribe to the bonds to be issued pursuant to the new bond issue.
In the sovereign debt market, turnover shrank by 24 per cent to €5.98 million, spread over 25 stocks. Most long-dated securities continued to dampen the yields further, as opposed to their European counterparts, with both the 10- and 20-year generic yields rising marginally higher, despite a new round of economic sanctions imposed by the EU on Russia, which will particularly hamper the country’s financial sector.
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.