Last week, the Malta Stock Exchange (MSE) index closed marginally lower, as advancements registered at the beginning of the week were offset by losses registered in the share price of International Hotel Investments plc (IHI). On the other hand, shares of Go plc, HSBC Bank Malta plc, Malta International Airport plc (MIA) and RS2 Software plc prevented the index from settling lower than it did. The index shed a loss of 0.1 per cent to close at 3,324.085 points.
Half of the 14 traded securities rose in value, four retreated, while three closed unchanged. Turnover shrank by 46 per cent to €715,000, with trading in the IT company RS2 representing 25 per cent of total trading value.
Buying interest in shares of RS2 led to a fresh record high of €2.95, as 10 deals of 62,400 shares were struck – making it the top performer for the week.
No trading took place in its peers, 6PM Holdings plc and Crimsonwing plc.
Another equity that closed at an all-time high was MIA, whose shares strengthened by 1.3 per cent to €2.36 after eight deals worth €122,000.
In the banking sector, Bank of Valletta plc (BOV) was the only laggard, as its share price fell by a further 0.7 per cent over a turnover worth €79,000. During the week, deals were executed in the €2.211 to €2.25 price band to finally close at €2.225.
All the other banking equities closed the week in the black, with Lombard Bank Malta plc heading the list of gainers with a 3.1 per cent rise in price after being traded in 11 transactions of 24,600 shares.
HSBC shares recouped some of the previous week’s 4.4 per cent loss, as 21 deals of 44,332 shares pushed its price up 1.5 per cent to €1.98.
Meanwhile, Fimbank plc ended the week up by 0.8 per cent at $0.66, as 54,860 shares changed hands over six deals.
Go plc settled at yet another multi-year high of €2.57; the equity had last traded at this level in July 2008. The telecommunications company was negotiated over the third highest turnover, worth 106,000.
The week’s other gainer was Simonds Farsons Cisk plc (SFC), whose shares locked in a 0.7 per cent gain on a thin volume of 4,796 shares. On Wednesday, following the company’s announcement last June relating to the Farsons Business Park project, the board of directors have now approved a concept and design budget covering the initial phases of the development. The project is expected to be completed by the middle of next year.
Furthermore, the board said that it would eventually be appropriate to re-organise the corporate structure, such that the group’s property interests that are unrelated to the core beverage business are separated into a distinct public limited company. It is expected that an extraordinary shareholders’ meeting in relation to this will be convened in the last quarter of 2015.
Heading the list of fallers was IHI, as its share price plummeted by 6.3 per cent to a record low of €0.60. Trading activity was spread over nine deals of 24,003 shares.
The week’s other two fallers were Midi plc and Plaza Centres plc. The former contracted by 4.2 per cent, or €0.01, on two deals of 20,000 shares, whereas Plaza Centres’ share price slipped by 1.3 per cent on three deals of 41,000 shares.
In its interim directors’ statement, Loqus Holdings plc reported that its financial situation in the last quarter of the financial year has shown a significant upturn, compared to the same period last year. This is mainly due to registered progress on government projects and the anticipated decrease in the amortisation charge and net financing costs. Hence, the group is expecting to show a significant improvement in the financial results for the year ended June 30, 2014, allowing the group to approach its breakeven position.
Furthermore, a new subsidiary, Loqus Fleet Ltd, has now been established as part of the group’s strategy to consolidate its fleet management intellectual property rights and business. Further progress has been registered on the setting up of the 1 Fleet Alliance, which is expected to create a pan-European fleet management alliance that will enhance and complement the individual parties’ growth and value. The equity was not active last week.
The week’s other non-movers Maltapost plc, Medserv plc and Malita Investments plc.
In the corporate bond market, trading value fell by 40 per cent to €910,000, spread over 30 issues. Out of the 30 traded bonds, 13 gained ground, nine closed in the red, while eight closed unchanged.
The worst performer for the week was the 7.5 per cent Mediterranean Investments Holding (MIH) plc euro 2015, which fell back to €94, whereas the 7.15 per cent MIH plc euro 2015-2017 recovered by 4.3 per cent, to close at €98.
The six per cent Island Hotels Group Holdings plc euro 2024 issue jumped by 1.8 per cent, to a record of €107, to yield just below 5.1 per cent.
In the sovereign debt market, turnover increased almost threefold to €15.7 million, spread over a total of 26 stocks.
Gains were recorded in long-dated issues, whereas shorter-dated ones edged marginally lower.
The recently issued 4.1 per cent MGS 2034 gained 1.4 per cent to €107.50. Meanwhile, the 5.25 per cent MGS 2030 (I) was the most liquid issue, accounting for 37 per cent of total turnover.
In Europe, expectations continue to build that the European Central Bank will start a full quantitative easing programme by the beginning of next year, as its recent efforts for banks to lend out more money did not meet expectations.
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.