The sovereign debt market witnessed a total of 293 transactions worth €26.9 million this week spread across 25 issues with most of the long-dated issues registering an increase in value.
In fact, bonds with a maturity ranging between 2028 and 2033 all locked in a one per cent gain or higher while five short-dated issues fell minimally.
The 7.8% MGS 2018 was the most liquid issue as it witnessed a traded value of €15.2 million, to close €0.03 higher at €126.50.
The Malta Stock Exchange index gained a minimal 0.08 per cent, to close at 3,326.817 points.
A total of 11 equities were active of which gainers and losers tallied at four while three closed unchanged. Turnover in the equity market reached €640,428.
The best and worst performers for the week were both in the banking sector as Lombard Bank Malta plc rallied by €0.05 or 3.1 per cent across eight deals of 47,950 shares, to close at €1.699, while Bank of Valletta plc shares slipped by 1.1 per cent over 32 transactions of 132,568 shares, closing at €2.201. The bank announced that the next annual general meeting will be held on December 17, 2014.
Meanwhile, HSBC Bank Malta plc shares added on to last week’s gains having appreciated by a further 1.01 per cent with 16,055 shares changing hands over 10 trades, to close at €2.00.
The telecommunications services provider Go plc managed to register a 1.2 per cent increase in its share price as 32,010 shares changed ownership across 14 deals, to close €0.03 higher at €2.60 – a price last reached in June 2008.
Similarly, Tigne Mall plc shares appreciated by 1.9 per cent over a sole transaction of 1,000 shares, closing at €0.525.
Investors showed a bearish attitude towards the IT sector as both Crimsonwing plc and RS2 Software plc shares fell by 1.2 per cent and 0.5 per cent respectively. The former witnessed two trades of 3,740 shares, to close at €0.80, while the latter was executed across a single transaction of 2,800 shares, closing at €2.934.
Likewise, Malta International Airport plc shed 0.4 per cent of its share price as 10 deals of 36,916 shares were negotiated, to close at €2.35.
Meanwhile, MIDI plc shares closed flat at €0.23. The equity was active across four deals of 19,347 shares.
GlobalCapital plc shares witnessed a single trade of a mere 192 shares, to close unchanged at €0.80.
On a similar note, Medserv plc shares traded flat at €1.275 over seven deals of 38,566 shares.
Simonds Farsons Cisk plc reported that the board of directors approved the group’s unaudited financial statements and interim directors’ report for the six months ended July 31, 2014. The group registered a profit before tax of €4.2 million, compared to €4.1 million registered in 2013. Revenue for the period amounted to €41.1 million, an increase of 1.2 per cent from 2013. Various factors impacted this marginal increase in returns such as the launches of new beer and beverage variants, FIFA World Cup initiatives and increased tourist expenditure.
The board further resolved to distribute, out of tax exempt profits, an interim dividend of €1 million, equivalent to €0.0333 per ordinary share. The dividend will be paid on October 17, 2014 to the ordinary shareholders that will be on the register as at the close of business on October 3, 2014. Earnings per share increased to €0.132. The equity was not active this week.
Island Hotels Group Holdings plc announced that, following recent reports in the local media, the directors have noted that there are several major developments planned in St George’s Bay and its surrounding area in the hotel and other real-estate sectors that are planned to have a material impact on the area, in particular during the construction phase.
Hence, the directors have decided to postpone the major refurbishment project of the construction of two further floors and a complete upgrade of the Radisson Blu St Julian’s until more information on these other projects becomes available. However, the company will still be closing down the Radisson Blu St Julian’s in November for necessary maintenance and other minor works in anticipation of re-opening in the near future. The hoteliers’ equity did not witness any trades this week.
In the corporate bond market, turnover amounted to €571,019 spread across 26 issues of which 14 gained ground, six fell and six closed unchanged. The 5.6% GlobalCapital plc € 2014/16 was the top performing issue as it advanced by 5.6 per cent, to close at €95. Meanwhile, the 7.15% Mediterranean Investments Holding plc Euro 2015-2017 took a 4.1 per cent pounding, to close at €93.99. Mediterranean Bank plc purchased €230,400 nominal of its 6.25 per cent bonds due in 2015 during the period June 1, 2014 until September 25, 2014. The investment bank has received approval from the MFSA and hence has concluded the acquisition of 100 per cent of the issued capital of Volksbank Malta Limited.
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.