The Malta Stock Exchange (MSE) index oscillated between negative and positive territory last week, to finally settle 0.28 per cent higher at 3,313.952 points. Much of the index’s performance intra-week mirrored Go plc share movements, as the MSE experienced a volatile week on relatively low volume. Nevertheless, the index’s positive performance was buoyed by gains in Bank of Valletta plc (BOV) and International Hotel Investments plc (IHI).
Total weekly turnover soared by 64 per cent to €1.59 million, albeit on a smaller number of securities. Out of the 11 traded equities, gainers and non-movers tallied at four, while three closed unchanged. Trading in BOV and HSBC Bank Malta plc (HSBC) accounted for over 60 per cent of total trading value.
In the banking sector, BOV was the most liquid security, with 99 deals of 286,199 shares lifting its price by 0.9 per cent, following the announcement of its year end financial results. The banking equity settled at €2.25 after failing to sustain an intra-week high of €2.27.
Heading in the opposite direction was HSBC, whose shares closed at a three-week low of €1.96. HSBC was active in a total of 28 transactions of 160,313 shares, executed in the €1.955 to €1.995 price band.
Fimbank plc shares closed unchanged at $0.63 as 18,569 shares changed hands in two deals.
Go plc extended the previous week’s 2.2 per cent fall by a further 1.7 per cent after 25 deals worth €97,000. Go shares closed the week at €2.595 after rebounding from an eight-week low closing price of €2.52 reached last Thursday.
IHI’s share price recovered 3.7 per cent following a 10 per cent decline recorded the previous week. In its interim directors’ statement last Monday, IHI said that other than the hotels in Tripoli and St Petersburg, its other hotels have performed better in the year’s first nine months compared to the same period in 2013, with Corinthia and the Marina hotel in St George’s Bay having their best performance since opening.
Two other gainers for the week were Maltapost plc and Plaza Centres plc. Maltapost rose by a further 0.9 per cent on low volume, to close €0.02 shy of its all-time high of €1.20, whereas Plaza Centres plc settled at its seven-month high of €0.62, after being traded in the week’s second-highest turnover, worth €330,000.
Midi plc headed the list of fallers with a 4.6 per cent dip in price, to close at a fresh record low of €0.21. The property management company was negotiated in three deals of 344,000 shares.
On Tuesday, Malta International Airport plc published its monthly traffic results for October. These showed a 2.9 per cent rise compared to the same period last year, reflecting the company’s efforts to market Malta as a year-round destination. Nine deals of 36,100 shares left the equity’s price intact at €2.33.
The other non-movers for the week were Simonds Farsons Cisk plc and Santumas Shareholdings plc. The former maintained its all-time high closing price of €3.01 after two deals of just 1,596 shares. There was a single deal of a mere 24 Santumas Shareholdings plc shares.
Its interim directors’ statement, Tigné Mall plc announced that following the publication of the company’s condensed interim financial statements for the six-month period ending June 2014, the mall continued to be fully let and has also experienced an increase in visitor footfall over the same period last year. The company generated healthy levels of cash from operations and its financial position remains positive and in line with projections.
It has recently secured planning consent for a new 550-square-metre outlet on which works are expected to start in the coming months. It will be available for letting next year. The equity was not active last week.
In the corporate bond market, two new issues were announced during the week. PTL Holdings plc, a subsidiary of Hili Ventures Ltd and parent company of the technology business division of the Hili Ventures Group, will be issuing €36 million 5.1 per cent unsecured bonds due in 2024, and paying an annual coupon of 5.1 per cent. The minimum amount per applicant is set at €2,000 for the public offer, and €25,000 for pre-placement offers. Investors should refer to the prospectus dated November 3.
Mediterranean Bank plc also announced that it will be issuing €15 million six per cent subordinated unsecured bonds 2019-2024 subject to an overallotment option of €10 million or equivalent in pound sterling. The bond will pay an annual coupon of six per cent and will mature between 2019 and 2024. Applications are to be submitted by November 20 in the case of preferred applicants owning the 6.25 per cent Mediterranean Bank 2015, while the intermediaries’ offer will close on November 21. Applications shall be of not less than €25,000 or GBP20,000. Investors should refer to the prospectus dated November 3.
Turnover in the bond market fell 16 per cent to €762,000, as 32 issues were traded, of which losers and non-movers tallied at eight, while twice as many rose in value. The 7.15 per cent MIH plc euro 2015-2017 plunged by 5.1 per cent to €93, whereas the GBP-denominated bond increased to its par value.
Meanwhile, four deals of 5,200 nominal dragged the price of the five per cent Tumas Investments plc unsecured € 2024 issue down by 3.1 per cent to €102.51. The bond is now yielding around 4.7 per cent.
In the sovereign debt market, almost all the 25 traded securities ended in negative territory, as yields were pushed higher. The 10-year European government average yield fell further following the European Central Bank president’s comments on Thursday, indicating that stimulus may intensify to spur growth in the euro area. The euro was the most impacted, reaching a two-year low against the US dollar.
Total turnover fell from €21.6 million to €14 million, of which 35 per cent was traded in the long-dated 4.1 per cent MGS 2034 (I) issue.
This article, which was compiled by Jesmond Mizzi, managing director of Jesmond Mizzi Financial Advisors Ltd (JMSA), does not intend to give investment advice and the contents therein should not be construed as such. JMSA is licensed to conduct investment services by the MFSA and is a member of the Malta Stock Exchange and 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. JMSA is acting as sponsors to the Mediterranean Bank plc bond issue. Mr Mizzi is a non-executive director of Hili Ventures Ltd. For further information contact Mr Mizzi at 67, Level 3, South Street, Valletta, or on Tel: 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.