The Malta Stock Exchange (MSE) index extended its gains by a staggering 3.09 per cent, to close just over its one-year high of 3,641.731 points – the best weekly gain since January 2011.
The index’s performance mirrors advances in a number of large capitalised issues, namely Bank of Valletta plc (BOV), HSBC Bank Malta plc, International Hotel Investments plc (IHI), Go plc, and Malta International Airport plc (MIA), which in aggregate account for almost three-fourths of the index’s total market value. Shares of Lombard Bank Malta plc and Fimbank plc heading in the opposite direction as investors were disappointed by their financial year-end results.
Activity was spread over 18 issues, of which 11 gained ground, five fell and two closed unchanged, with a total trading value of €1.98 million.
BOV shares rallied by 5.3 per cent to close at a 13-month high of €2.275 after failing to maintain an intra-day high of €2.29. The banking equity was active in the week’s second highest turnover, worth €435,000.
Trading in HSBC shares accounted for 45 per cent of total turnover. The bank’s share price recovered by a further 1.8 per cent following the recent sell-off after the bank’s disappointing financial year-end results. The equity closed just €0.01 shy of its intra-week high of €1.98.
Fimbank plc shares bottomed to $0.44, albeit on thin volume, as the group registered a 2014 pre-tax loss of $53.4 million, compared to a $4.1 million loss in 2013. This reflects the big rise in impairment losses, which more than offset the 78 per cent jump in net interest income. The board of directors is not recommending a dividend, but subject to the regulatory approval it is recommending a bonus issue of one share for every 10 held.
Lombard Bank Malta plc shares fell 2.5 per cent after the bank’s disappointing financial results were announced (See page 29). Last week, 40,757 shares of the bank’s shares were traded in 12 deals.
Shares of Middlesea Insurance plc closed the week unchanged after five transactions of 8,103 shares. In the financial year ended December 31, 2014, the group maintained a pre-tax profit of €17.3 million, the same as the previous year (See page 29). The board is recommending the payment of a final gross dividend of €0.05127 per share. The final dividend will be paid to registered shareholders as at April 30, 2015.
Meanwhile, three deals of just 350 shares in Simonds Farsons Cisk plc were struck at €3.201 – representing a week-on-week decline of 1.5 per cent.
Go plc ended the week at a seven-year high closing price of €2.91, after a total trading volume worth €101,000. The company reported that the group registered a pre-tax profit of €20.3 million, compared to €15.6 million in 2013. The board is recommending the payment of a final net dividend of €0.07 per share. This will be paid to registered shareholders as at April 2.
Investors show increasing appetite for companies with strong dividend payments in the prevailing record low-interest environment
IHI shares headed the list of gainers, locking in a 10.1 per cent gain as 18,534 shares were traded in seven deals. IHI’s share price closed at an eight-month high of €0.71.
MIA’s share price rose 1.9 per cent to another record high of €3.21 after a turnover worth €254,000 as investors show increasing appetite in companies with strong dividend payments in the prevailing record low-interest environment.
Plaza Centres plc shares closed at a 33-month high of €0.89, as eight deals of 79,367 shares lifted its share price by a further 4.7 per cent.
After a seven per cent gain in Medserv plc shares the previous week, the equity rose by a further 5.3 per cent last week to close at a 29-month high of €1.60 – ahead of the company year-end results expected to be released on March 23.
Malita Investments plc’s shares reached an all-time high of €0.95 after seven deals of 36,000 shares.
Maltapost plc also ended the week on a high of €1.41 after two transactions of 8,536 shares pushed the price up by 3.7 per cent.
The week’s two other gainers were Tigné Mall plc and Grand Harbour Marina plc (GHM), whose share price rose by 0.6 per cent and 1.1 per cent respectively. Both were traded in single deals of 1,000 shares. Tigné Mall plc shares closed at a record high of €0.705, as investors await the company’s year-end results next month, while GHM shares settled at a six-week high of €1.78.
Both 6PM Holdings plc and RS2 Software plc (RS2) ended the week in the red, on relatively low volume. RS2 shares more than reversed the previous week’s 0.3 per cent advance, as one deal of 1,000 shares was negotiated at €2.939. Meanwhile, four deals worth €4,800 dragged 6PM’s shares price down by 5.8 per cent to a year low of £0.65.
The week’s other non-mover was Midi plc, which was active in four transactions worth €5,600.
In the corporate bond market, out of the 29 traded issues, 13 closed in positive territory, six fell out favour and 10 closed unchanged. The week’s largest advance was in the Five per cent Hal Mann Vella Group plc Secured Bonds € 2024 issue, which locked in a 2.1 per cent gain to close at €109.
In the sovereign debt market, turnover fell by 30 per cent to €13.2 million, spread over 23 issues, of which five shed losses while 18 trended higher. The strongest gains were in longer-dated issues, with a 3.3 per cent jump in the price of the 4.1 per cent MGS 2034 (I) r. At a price of €127, the stock’s yield-to-maturity is 2.37 per cent.
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.