Last week, the Malta Stock Exchange (MSE) index registered its highest weekly gain in the past five months, as equities with a large market capitalisation locked solid gains.
Shares of HSBC Bank Malta plc more than recovered their previous week’s decline, whereas those of International Hotel Investments plc (IHI) registered double-digit gains. Island Hotels Group Holdings plc (IHGH) headed the list of gainers following the recent offer made by IHI to acquire the company. Lagging behind were shares of Bank of Valletta plc (BOV) and Middlesea Insurance plc (MSI).
The index closed 1.86 per cent higher at 3,417.823 points, a few points shy from its eight-month high of 3,426.205 reached last Thursday.
Turnover in the more volatile equity market shrank 34.3 per cent, from €1.61 million to €1.06 million. Eight of the 15 traded securities rose, two fell, while the other five closed the week unchanged.
In the banking sector, shares of BOV failed to sustain their 11-month high of €2.10 as selling pressure in 92 transactions led to a 2.4 per cent decline in price, to almost completely erase its previous week’s gain. There was €358,000 worth of trading in BOV shares, the highest turnover for the week in a single equity.
By contrast, HSBC shares recovered all of the losses registered so far this year, as 11 transactions of 36,457 shares pushed up the banking equity’s price by 3.8 per cent to €2.03.
Lombard Bank Malta plc shares notched 0.6 per cent higher to €1.81 on four deals of 15,878 shares.
Shares of IHGH rallied by 16.5 per cent, to close at a 16-month high of €0.99 on relatively thin volume, as three deals of 6,000 shares were struck. Meanwhile, shares of IHI , which on January 16 announced its interest in acquiring majority shareholding in IHGH – soared by 13.9 per cent, to close at €0.649, just €0.001 shy from their five-month high reached last Thursday.
Malta International Airport plc soared to a fresh record-high as its share price strengthened by 2.1 per cent after the second highest turnover for the week of €136,000, ahead of the 2014 traffic results published on Friday afternoon.
The company announced that last year, the airport hosted close to 4.3 million passengers, which marks an increase of 6.4 per cent over the 2013 figure. The company is forecasting two per cent growth for this year over last year’s record year.
Furthermore, the company is planning to investment around €4 million this year to improve, among other things, the runway and terminal building in the non-Schengen arrivals section.
In the IT services sector, RS2 Software plc edged marginally higher by 0.1 per cent, to close at yet another record high of €2.974 after over five deals of 41,301 shares.
Its peer, Crimsonwing plc, traded flat at €0.85, as a single deal of 20,000 shares was struck.
Maltapost plc shares rose by 1.8 per cent to €1.232, as 17,653 shares changed hands in six transactions.
The week’s other gainer was Plaza Centres plc, whose shares edged 0.2 per cent higher, as two deals of 59,500 shares were negotiated.
Shares of Middlesea Insurance plc headed the list of fallers, as one deal of just 576 shares dragged the equity’s price down by five per cent to €0.95 – a three-month low.
Telecommunications company Go plc was active in a total turnover of €93,000 but there was no change in price by the end of the week.
Malta International Airport plc soared to a fresh record-high as its share price strengthened by 2.1 per cent after the second highest turnover for the week
The other non-movers for the week were Midi plc, which was active in six deals of 204,600 shares, and Malita Investments plc and Santumas Shareholdings plc, both of which were traded on thin volume.
In the corporate bond market, 33 issues were traded, spread over a total turnover of €1.98 million, down from €3.15 million the previous week.
Among the nine falling issues, the 6.5 per cent Island Hotels Group Holdings plc € 2017-2019 bond recorded the worst performance, after falling by 3.7 per cent on nine deals of 58,900 nominal.
Meanwhile, 13 issues headed in the opposite direction, with the five per cent Tumas Investments plc Unsecured € 2024 advancing by a further 1.4 per cent to €107.99, with a yield to maturity of just under four per cent.
In the sovereign debt market, total turnover shrank by 23.4 per cent to €13.6 million, with almost all of the 26 traded stocks continuing to trend higher, in line with the European sovereign yields, which were hammered further following the much-awaited commitment made by European Central Bank president Mario Draghi to a quantitative easing programme amounting to €1.1 trillion starting from March, with monthly purchases of public and private debt to reach €60 million every month till September 2016.
The size of this stimulus exceeded market’s previous expectations, and as a result, the euro currency continued on its downward trajectory versus most of its major peers.
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 1/2, St Joseph High Street, Ħamrun, or on Tel. 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.