The Malta Stock Exchange (MSE) index ended the first week of February in the red, halting a seven-week winning streak.
The index had a positive performance during the first three days of the week, extending its gains towards a fresh eight-month high, until losses in the shares of HSBC Bank Malta plc, which however closed the week in positive territory, International Hotel Investments plc (IHI), Medserv plc, and to a lesser extent, Middlesea Insurance plc (MSI), more than offset the gains by the end of the week.
Strong gains were recorded in the shares of Malita Investments plc, Maltapost plc and Tigné Mall plc, all of which reached record high closing prices. The index registered a week-on-week loss of 0.17 per cent, to close at 3,414.497 points.
Total turnover in the equity market reached €1.31 million, as 18 equities were negotiated, of which eight gained ground, five fell in value and another five closed unchanged.
In the financial services sector, shares of HSBC failed to sustain a six-month high of €2.05 reached intra-week, to close Friday at €2.02 after a total of 51,837 shares were traded in 29 deals.
Meanwhile, Bank of Valletta plc shares erased some of the previous week’s two per cent gain, as a 0.5 per cent decline was recorded after the highest turnover for the week, worth €336,000.
Last Friday, the bank published its interim directors’ report, covering the period starting October 1, 2014, until the date of the announcement. Inter alia, it was pointed out that financial performance was in line with expectations and that weak demand for business lending was mitigated by the high request for home loans. Moreover, considering the current low interest rate environment, customer deposits continued to grow, which led to higher levels of liquidity. On the other hand, an increase in cost was recorded over the comparative period last year as a result of the regulatory costs applicable under the deposit compensation scheme.
Fimbank plc shares plunged by a further 9.1 per cent as investors continued to digest the previous week’s downgrade announcement by Fitch, to close at their all-time low price of $0.50. There were four deals of 19,693 shares.
In the same industry, four deals of 23,322 Lombard Bank Malta plc shares left its price intact at €1.92.
Meanwhile, a marginal gain of 0.4 per cent was recorded in the share price of Middlesea Insurance plc, as a one per cent advancement recorded by Wednesday was partially offset in Thursday’s trading session.
The insurance services company was active over a total turnover of €39,000.
Go plc was active over the second highest turnover for the week, worth €315,000. The telecommunications company ended the week up by 0.6 per cent at €2.615, just shy of its weekly high of €2.62.
In the IT services sector, shares of RS2 Software plc retreated from their all-time high closing price of €2.98, as six deals of 30,763 shares lowered the equity’s price lower by 0.7 per cent to €2.96.
In the same line of business, Crimsonwing plc shares were traded in four deals of 15,643 shares, pushing the equity’s price up by 1.3 per cent to €0.855.
Last Tuesday, the company announced that in connection with the offer received from KPMG Investments Malta Ltd for a voluntary public takeover, all trading in Crimsonwing shares has been suspended after close of last Tuesday’s trading session.
Postal services company, Maltapost plc advanced by a further 1.5 per cent and settled the week at its all-time high of €1.33. Five transactions of 14,200 shares were executed.
Malita Investments plc shares were second to none, reaching yet another record high closing price of €0.72, as 31,000 shares changed hands in seven deals.
Likewise, Tigné Mall plc shares closed at their record high of €0.665 on thin volume.
The other gainer for the week was Island Hotels Group Holdings plc, whose shares strengthened by a further 0.9 per cent, to close at their record high of €1.029. There was just a single deal of 2,000 shares.
Medserv plc retreated from its multi-period high of €1.47, as five deals of 158,500 shares dragged the equity’s price by 3.4 per cent, to close at its eight-week low of €1.42.
Shares of IHI closed unchanged, as a 1.6 per cent advancement at the beginning of the week was reversed on Thursday, which negatively affected the index’s earlier positive performance. Turnover during the week was spread over six deals of 39,101 shares.
Malta International Airport plc shares closed the week unchanged after retreating from its all-time high of €2.54 reached in intra-day trading. There were 13 deals of 12,200 shares.
The other non-movers for the week were Simonds Farsons Cisk plc and Grand Harbour Marina plc, both of which were traded on thin volume.
Loqus Holdings plc shares edged minimally lower as a 5.7 per cent gain on Wednesday was more than offset by a six per cent decline on Thursday. The equity active in four deals worth €2,100.
In the corporate bond market, total turnover shrank by half to around €1.06 million as 31 issues were negotiated, of which 13 gained ground, eight shed value, and 10 closed unchanged. The 5.35 per cent Bank of Valletta plc Sub € 2019 issue registered the highest gain of 6.5 per cent, as five deals of 29,900 nominal lifted the bond’s price to €114.
On the contrary, the 7.15 per cent Mediterranean Investments Holding plc USD 2015-2017 plunged by 8.1 per cent to $80.
Meanwhile, the 5.8 per cent International Hotel Investments plc 2021 retouched its par value, following three deals of 8,100 nominal.
In the sovereign debt market, 21 out of the 27 traded stocks rose in value, with a total turnover of €31.4 million, a 33.4 per cent increase over the previous week’s total trading value.
Strongest gains were observed in longer-dated issues, including the 4.1 per cent MGS 2034, up by 0.5 per cent, and the 5.1 per cent MGS 2029, up by 0.4 per cent. The 4.5 per cent MGS 2028 issue traded the most, accounting for 28.7 per cent of total turnover.
On the other hand, European yields slightly rebounded from their record lows as a result of the current uneasiness over the standoff between Athens and its EU lenders.
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.