The Malta Stock Exchange (MSE) index touched a three-week high last Wednesday but then settled marginally lower at 3,350.475 points – a 0.71 per cent rise over the previous week.
Contributing to the index’s performance were shares of Bank of Valletta plc (BOV), Simonds Farsons Cisk plc (SFC), and to a lesser extent, Plaza Centres plc. Most of the other equities which traded closed unchanged, whereas RS2 Software plc ended the week just below its all-time high.
Total turnover rose by 80 per cent to €1.15 million, of which more than half of the trading value was in shares of HSBC Bank Malta plc, BOV and RS2.
Out of the 14 traded securities, five gained in value, one lost ground, while eight closed unchanged.
In the banking sector, BOV was the sole gainer of the week, as it jumped by 2.7 per cent to a three-week high of €2.261 after failing to sustain an intra-week high of €2.27.
The banking equity was active in the highest turnover for the week worth €250,000.
On the contrary, HSBC was the week’s only faller as its share price retreated by 0.5 per cent, following the previous week’s one per cent advance.
There were 31 transactions of 104,360 shares.
Meanwhile, 30,000 shares of Lombard Bank Malta plc were negotiated in six deals, which left the equity’s price unchanged at €1.699.
Among the week’s top performers was SFC, whose shares rallied by 5.1 per cent to a two-month high of €2.9 despite turning ex-dividend last Wednesday.
Investors who owned SFC shares prior to September 30 will be receiving an interim dividend of €0.0333 per ordinary share on October 17.
Telecommunications company Go plc witnessed 10 deals of 25,220 shares, but closed unchanged at a six-year high of €2.6. Nevertheless, intra-week deals were also executed at €2.56.
In the IT sector, RS2 was the week’s only gainer, partially recouping from the 0.5 per cent drop the previous week.
The IT equity closed €0.01 shy of its all-time high of €2.95, after experiencing €241,000 worth of trading.
Its peer, Crimsonwing plc traded flat at €0.8, following a single deal of just 700 shares.
Loqus Holdings plc’s share price shot up by 35.3 per cent, or €0.03, on thin volume – two deals of 3,639 shares totalling a mere €413. The company’s shares had not been traded since mid-August.
The company’s interim directors’ statement indicated a significant upturn in the last quarter of the financial year compared to the same period last year, primarily as a result of progress made in government projects, as well as a decrease in the amortisation charge and net financing costs.
One other equity closing in positive territory was that of Plaza Centres plc, whose shares settled at a five-month high of €0.61 following a 3.4 per cent rise in price.
Activity was spread across 12 deals of 158,892 shares.
In the same line of business, both Malita Investments plc and Tigné Mall plc closed unchanged at €0.56 and €0.525, respectively.
The other non-movers for the week were Malta International Airport plc (MIA), Medserv plc and Maltapost plc.
MIA shares were active over a total turnover of €75,000; Medserv shares changed hands in 13 deals worth €96,000; whereas share of Maltapost were negotiated on thin volume as five deals of 6,823 shares were struck.
In the corporate bond market, a twofold increase in turnover was registered, as 25 issues were negotiated over a trading value of €1.15 million, as opposed to €571,000 the previous week.
Out of the 25 traded bonds, 12 climbed, eight fell out of favour, while five closed unchanged.
The 5.35 per cent BOV plc sub euro 2019 gained 2.4 per cent to close at €108.75, whereas the 7.5 per cent MIH plc euro 2012-2014 maturing in December lost two per cent, to close at €98.
Mid-week, United Finance plc announced that subject to the necessary regulatory approvals, the company will shortly be issuing new bonds maturing in 2023 and will be redeeming the 6.75 per cent bonds maturing in 2014-2016. The company will be giving holders of maturing bonds preference to subscribe to the new bond issue.
In the sovereign debt market, turnover shrank from €26.9 million to €12.5 million, spread over 25 government stocks, of which 18 continued to trend higher, while those with a shorter term to maturity marginally declined.
The 3.3 per cent MGS 2024 (I) was the best performer, as it recorded a one per cent gain to close at €109.81. Meanwhile, the 4.1 per cent MGS 2034 (I) r was the most liquid issue, accounting for 23 per cent of total turnover value and closing at €108.75.
Last Thursday, the European Central Bank (ECB) kept its benchmark interest rate at 0.05 per cent and gave details of its asset purchase programme announced last month.
ECB president Mario Draghi said the bank would start buying covered bonds – bonds backed by public sector loans or mortgages – this month and other assets in the last three months of the year.
He added that the bank would continue to buy assets for two years with the aim of adding liquidity to the financial system, boost lending and lift economic growth.
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.