Last week, the Malta Stock Exchange (MSE) index put together some solid gains, as shares of financial companies – particularly Bank of Valletta plc (BOV) and Middlesea Insurance plc (MSI) – soared in value. One other major contributor to the index’s overall performance, given its large weighting on the MSE, was Malta International Airport plc (MIA), whose shares ended the week at yet another record high.
Meanwhile, shares of Plaza Centres plc maintained their upward trend, as buying interest continued to weigh in following positive year-end financial results. The index ended the week up 3.33 per cent to 3,762.866 points, after failing to sustain a 13-month high of 3,784.668 points reached on Wednesday.
Total turnover stood at €1.97 million, in line with the previous week, as 18 equities were negotiated, of which two-thirds rose in value, four shed losses, while two closed unchanged, as year-to date gains reached 12.96 per cent.
In the banking sector, BOV shares were active in the week’s highest turnover, accounting for 39 per cent of total trading value. Investors’ interest led to a week-on-week gain of 7.7 per cent, to close €0.05 below its seven-year high of €2.50, reached on Wednesday.
Shares of HSBC Bank Malta plc touched a six-week high of €2.03 on Wednesday, to then adjust to €2 on Friday when the equity turned ex-dividend. Nevertheless, at this level, the banking equity locked a weekly gain of 1.5 per cent. Last Wednesday was investors’ last opportunity to be entitled to the bank’s dividend payment of €0.026 gross (€0.017 net). HSBC shares were active in the week’s second highest turnover, worth €334,000.
Lombard Bank Malta plc shares also appreciated by 1.5 per cent, recouping some of the previous week’s 2.5 per cent loss. Activity was spread over 11 transactions of 25,732 shares.
Fimbank plc was the only banking equity to close the week in the red, whereby one deal of 1,347 shares was struck at $0.43 – a drop of 2.3 per cent.
Middlesea Insurance plc shares rallied by 10.5 per cent to close at a 56-month high of €1.16, albeit on thin volume, worth €11,600.
A total of 59,457 MIA shares were traded in 20 deals, resulting in a weekly gain of 3.2 per cent, to close at €3.311 for the first time.
Medserv plc shares rose 3.1 per cent to close the week at a four-year high of €1.65 as investors await tomorrow’s announcement of the company’s year-end results. €55,000 worth of the company’s shares were traded.
Three deals of 10,000 shares in Grand Harbour Marina plc pushed the equity’s price up 5.6 per cent to a 20-month high of €1.88.
The MSE’s third largest company in terms of weighting, International Hotel Investments plc, advanced by a further 1.4 per cent, following a 10.1 per cent surge in price the previous week after four transactions of 16,176 shares were executed.
In the IT services sector, RS2 Software plc shares reversed the previous week’s 0.7 per cent fall to close at €2.96, as 51,174 shares changed hands in 12 deals. Meanwhile, four deals of 7,874 shares left the share price of 6pm Holdings plc intact at £0.65, after opening at £0.661.
Santumas Shareholdings plc retouched €2 after a total turnover of €20,500.
On Wednesday, Plaza Centres plc announced its financial results for the year ended December 31, 2014. The company made a pre-tax profit of €1.5 million, compared to €1.3 million in 2013. Revenue for the period amounted to €2.4 million, a 10.4 per cent rise from 2013. Earnings per share increased to €0.0335.
The board is recommending to the AGM the payment of a final net dividend of €0.0268 per share (2013: €0.0238 per share) to be paid on June 2 to registered shareholders as at April 27.
After these positive results, a single deal of 30,000 shares was struck last Friday at €0.92– a 3.4 per cent gain and a three-year high.
Midi plc shares headed the list of gainers, as 23 deals of 348,800 shares pushed the equity’s price 21.7 per cent higher to close at a 13-month high of €0.28.
Malita Investments plc retreated from its all-time high of €0.95, as three deals of 7,000 shares dragged the equity’s price down 2.2 per cent to end the week at €0.929.
The week’s other two fallers were Go plc and Maltapost plc, ending the week down 0.3 and 0.1 per cent respectively. Go shares were active in the week’s third highest turnover worth €212,000, while Maltapost’s shares were negotiated on a relatively low volume, worth €9,900.
After three weeks of inactivity, a single deal of a mere 1,000 Island Hotels Group Holdings plc shares was struck, but the equity price closed unchanged at €1.02.
In the corporate bond market, 21 issues were traded, of which six gained ground, five contracted, while 10 closed unchanged. Total turnover shrank by 69 per cent, from €2.3 million to €713,000.
The week’s highest gain was in the 5.35 per cent Bank of Valletta plc sub € 2019, which closed at €111, with a corresponding yield to maturity (YTM) of 2.59 per cent.
The six per cent Mediterranean Investments Holding plc euro 2021 issue dropped by 2.1 per cent to €93.
In the sovereign debt market, total trading value stood at €3.02 million, as opposed to €13.24 million the previous week. Of the 19 traded issues, 10 edged higher while nine posted a loss. Most of the gains were in the longer-dated issues, except for the 4.45 per cent MGS 2032 (II) and the 4.3 per cent MGS 2033 (I) r issues, which slipped by 0.6 and 0.4 per cent respectively. Paradoxically, the longer-dated 4.1 per cent MGS 2034 issue rose 1.6 per cent in value to €129.
European yields across the entire 30-year spectrum continued to tick lower, whereas the euro currency bounced back versus its major peers, as the US Federal Reserve hinted that the pace at which a hike in interest rates will take place might be slower than investors have been anticipating.
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.