Over the four-day trading week, the Malta Stock Exchange (MSE) index extended its losses by 0.19 per cent, marking its fourth weekly decline. The main laggards were the two largest banking equities by market value, Bank of Valletta plc (BOV) and HSBC Bank Malta plc, as well as Malta International Airport plc (MIA) and Go plc.
Trading in the opposite direction were shares of Simonds Farsons Cisk plc (SFC) and Maltapost plc – both of which closed the week at their all-time high. The index touched a 21-month low of 3,231.982 points, but then settled marginally higher at 3,238.81 points on Friday.
Activity in the more volatile equity market rose by 17 per cent over the previous week to €911,000, spread over a total of 14 shares – of which half outperformed the index’s performance, four dragged the index lower, while three closed unchanged.
Following the publishing of Maltapost’s preliminary statements of the company’s annual results last Tuesday, thin trading of just 5,000 shares led to a 2.5 per cent surge in price to close at a fresh record high of €1.25. Total trading for the week stood at 41,981 shares traded in three transactions.
The postal services company registered a profit before tax of €2.74 million, compared to €1.99 million registered in 2013. Revenue for the period under review amounted to €23.72 million, a rise of 9.6 per cent from 2013. Earnings per share (EPS) increased to €0.05.
The company’s board of directors have also resolved to recommend to shareholders at the annual general meeting the payment of a final ordinary dividend of €0.04 per share – payable either in cash or by the issue of new shares to shareholders on the company’s share registrar as at Wednesday.
Similarly, shares of SFC added 0.7 per cent in value as two deals of just 5,200 shares were struck, to close at their all-time high closing price of €3.04 – after failing to sustain an intra-day trading high of €3.05.
In the banking sector, trading across BOV and HSBC shares, accounted for over 70 per cent of total trading value, as selling pressure led to a decline of 0.9 and 0.8 per cent, respectively. BOV shares witnessed an intra-week low of €2.17, but then settled slightly higher at €2.18, whereas HSBC shares retouched their multi-period low of €1.90.
Last Friday, HSBC announced that its board of directors is scheduled to meet on February 23, 2015, to approve the group’s audited financial results for the year ended December 31, 2014, and consider the declaration of a final dividend to be recommended to shareholders.
In the same line of business, Lombard Bank Malta plc was the only banking equity to close in positive territory, as 9,000 shares changed hands in two deals. The banking equity’s share price reached a 10-month high of €1.76 in intra-week trading, but then settled marginally lower at €1.755.
Heading the list of gainers was Crimsonwing plc in the IT services sector, as its share price rallied by 7.8 per cent after a single deal of a mere 600 shares was executed – just €0.0027 shy of the offer price in the voluntary public bid launched by KPMG Investments Malta Ltd at the end of November.
Its peer, RS2 software plc traded flat at €2.929 after one deal of 3,400 shares.
International Hotel Investments plc (IHI) shares recouped 1.9 per cent from the previous week’s all-time low of €0.52 as 1,789 shares were traded in one transaction.
Last Thursday, IHI released some information regarding its business structure and strategic progress that has been made over the past years. One particular point was the increased geographical diversification that has taken place since 2009, when its commercial centre in Tripoli on its own accounted for 66 per cent of the group’s earnings before interest, taxes, depreciation, and amortisation (EBITDA). Today, none of IHI’s business centres account for more than 17 per cent of the group’s EBITDA on their own.
Shares of Medserv plc, the logistics services company for oil and gas, settled at their 15-month high of €1.41 as four deals of 14,000 shares were negotiated.
A similar gain of 1.6 per cent was noted in shares of Plaza Centres plc, following three deals of 38,218 shares struck at €0.64.
Meanwhile, Go plc shares settled at their three-month low of €2.50 as buying interest in the telecommunications company continued to abate.
Active in 10 deals of 26,281 shares, Go shares touched an intra-week low of €2.48.
The other faller for the week was MIA, whose shares initially plunged to a four-month low of €2.22, but then recouped 3.6 per cent in Friday’s session. Over the week, MIA’s share price fell by 1.3 per cent, as 11 transactions worth €55,200 were registered, to close at €2.30.
Both Island Hotels Group Holdings plc and Tigné Mall plc shares closed unchanged on low volumes.
In the corporate bond market, total turnover was in line with that of the previous week, at €1.29 million, with a total of 28 issues being traded. Activity was concentrated on two of the most recently issued bonds – the Five per cent Hal Mann Vella Group Holdings plc Secured Bonds euro 2024 and 5.1 per cent PTL Holdings plc Unsecured euro 2024. The latter started trading last Thursday and witnessed an intra-day trading high of €104.5 but closed the week at €103.
In the sovereign debt market, losses were only recorded in those stocks nearing maturity, as 19 out of the 25 traded issues continued to trend higher, in line with the 20-year European spectrum, with the exception of countries such as Italy and Greece, which are currently facing political instability.
The most liquid Malta Government Stock was the 5.25 per cent MGS 2030 (I), accounting for 13 per cent of the €8.7 million total trading value.
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 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 at 1/2 St Joseph High Street, Ħamrun, or on Tel 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.