The Malta Stock Exchange (MSE) index partially recouped from the previous week’s 0.36 per cent decline, as losses registered at the beginning of the week were more than reversed by Friday’s session. In fact, the index edged 0.12 per cent higher, to close at 3,342.651 points.
Shares of Bank of Valletta plc (BOV), Middlesea Insurance plc (MSI) and Simonds Farsons Cisk plc (SFC) headed the list of gainers, as opposed to Fimbank plc shares, whose sharp decline in price hindered the index from rising higher.
Out of the 14 traded securities in the more volatile, equity market, half rose in value, two shed ground, while five closed unchanged. Turnover jumped by 55 per cent to €1.06 million, of which more than half was traded in companies in the financial services sector.
In the banking sector, BOV shares recouped 0.8 per cent, following the previous week’s 1.3 per cent loss.
The banking equity was negotiated over a turnover of €232,000, to close €0.001 lower from its weekly high of €2.25, as investors await the annual financial results to be announced on October 31.
In the same line of business, HSBC Bank Malta plc advanced marginally by 0.3 per cent to €1.965, over the highest turnover for the week worth €260,000 – with deals being executed between the €1.92 and €1.988 price bands.
Meanwhile, Lombard Bank Malta plc shares inched 0.1 per cent higher, to close at an 11-week high of €1.70 after eight deals of 39,794 shares struck last Friday.
The only banking equity to register a loss was that of Fimbank plc, whose shares settled at a fresh three-year low of $0.60, following a 9.1 per cent decline after four transactions of 3,401 shares.
Second to none were shares of MSI, which rallied by 6.4 per cent to an eight-month high of €1. The insurance company was active in 11 deals of 18,685 shares following five weeks of inactivity.
A 7.5 per cent drop in Monday’s session was more than offset by a 14.9 per cent appreciation last Friday – the same day on which the company published its interim directors’ statement, in which the company stated that the third quarter of 2014 reflects the positive sales trend and strong performance reported in the interim results published last July.
SFC shares ended the week at a four-month high of €2.972, locking in a 2.5 per cent gain after a single deal of just 850 shares.
Two other gainers last week were Malta International Airport plc (MIA) and Medserv plc
The latter strengthened by 1.5 per cent to a five-month high of €1.32 after a total of 100,000 shares were traded in seven deals.
Meanwhile, MIA shares ended the week €0.01 shy from their record high of €2.36. The equity experienced the third highest turnover of the week worth €202,000.
Turnover jumped by 55 per cent to €1.06 million, of which more than half was traded in companies in the financial services sector
In the IT services sector, 1.4 per cent was shaved off Crimsonwing plc’s share price on thin volume, to end at a one-year low of €0.789. Its peer, 6PM Holdings plc was active in nine transactions of 81,941 shares, of which all deals were struck at £0.72.
The other non-movers for the week were Go plc, International Hotel Investments plc, Malita Investments plc and Tigné Mall plc – all of which were traded on similar volumes, ranging between a value of €14,000 and €22,000.
In the corporate bond market, total turnover shrank from €1.67 million to €656,000.
This was due to the fact that during the previous week turnover was unusually high and investors’ focus turned to the new Hal Mann Vella Group plc and the United Finance plc bond issues.
Last week, out of the 26 traded issues, gainers and losers tallied at nine, while the other eight closed unchanged. The bond of Global Capital plc was the week’s worst performer, as it retreated by five per cent, following last week’s 7.3 per cent appreciation, whereas the five per cent Tumas Investments plc unsecured euro 2024 issue rose 1.4 per cent, to close at €106.5 – to yield around 4.2 per cent.
In the sovereign debt market, trading value stood at €11.89 million – a 40 per cent increase over the previous week.
Long-dated issues traded higher during most of the week’s sessions except last Friday, when stocks witnessed a slight correction across most issues.
The medium-term dated 4.3 per cent MGS 2032 (II) was the most liquid issue of the week, as it accounted for one-fourth of total turnover value – and gained 0.4 per cent in value. Yields across the 20-year spectrum continued to decline, which mirrors their 10- and 20-year peers in Europe.
Moreover, the euro currency rebounded against the US dollar and the Sterling, as the depressed global economic outlook may be suggesting that interest rate hikes in such countries will not start as early as was previously anticipated.
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.