The Malta Stock Exchange (MSE) index last week fell by 1.05 per cent despite the fact that 10 equities closed the week in positive territory. Bank of Valletta plc (BOV) and HSBC Bank Malta plc – which in aggregate represent around 44 per cent of the index – deprived it from sustaining the previous week’s upward momentum.
Among last week’s gainers were the shares of Malita Investments plc, Medserv plc, 6PM Holdings plc, Middlesea Insurance plc (MSI) and Simonds Farsons Cisk plc (SFC), which albeit registering solid single-digit gains, account for less than a tenth of the index’s overall value.
Total trading volume was spread over 14 equities as turnover increased from €1.21 million to €2.2 million. Activity was concentrated on shares of BOV, as investors hammered the equity’s share price to an intra-week low of €2.18 mid-week, following the previous week’s company announcement regarding legal court proceedings that have been instituted against it in an Italian court. No further details regarding the matter have been provided as yet.
The week’s highest turnover was in BOV shares, which represented 41.4 per cent of total trading value. The bank’s share price managed to recoup a substantial part of the initial loss towards the end of the week, to close Friday’s session at €2.30 – a week-on-week drop of 3.8 per cent.
The week’s other faller was HSBC, whose shares traded between €2.001 and €2.099. Total trading volume was worth €213,000. The bank’s share price failed to sustain its eight-month high of €2.10 reached the previous week, as current internal issues between the bank’s management and employees seemed to be driving the share price into negative territory. HSBC shares closed the week down by 2.9 per cent at €2.039.
Two deals of 32,706 Lombard Bank Malta plc shares left the equity’s price unchanged.
The week’s second highest turnover, worth €526,000 were in shares of Malta International Airport plc (MIA). The company’s share price rose by 1.5 per cent to retouch its all-time high closing price of €3.50 which was first reached in March.
MSI shares continued to trend higher, settling the week at a five-and-a-half year high of €1.20, although on a relatively thin volume in which five transactions of 12,239 shares were executed.
Following a month of inactivity, three deals of just 3,109 shares in Simonds Farsons Cisk plc (SFC) led to a 2.2 per cent gain in value, to close at a record high closing price of €3.27. SFC shares were also negotiated at an all-time high of €3.301 during intra-day trading.
In the IT services sector, 6PM shares headed the list of gainers as a single deal of 2,000 shares was struck at £0.73 – an eight-month high. On Friday, the company announced that its board of directors is due to meet on Thursday to consider and approve the company’s audited financial results for the year ended December 31, 2014, and to consider the possible declaration of a dividend to be recommended to the company’s annual general meeting.
Its peer, RS2 Software plc, inched 0.3 per cent higher, after failing to maintain an all-time high closing price of €2.99 reached on Tuesday.
Malita Investments plc strengthened by 3.2 per cent as 141,500 shares changed hands in 10 transactions. The special purpose vehicle touched a record price of €0.99 in intra-day trading, to then close the week at an all-time high closing price of €0.97.
Similarly, Medserv plc’s share price reached an all-time high of €2 intra-week, after which it settled at €1.98 – a weekly gain of 4.2 per cent, as 11,200 shares were traded in four transactions.
Telecommunications company Go plc more than recouped the previous week’s 0.2 per cent decline, as 11 deals worth €154,000 pushed the equity’s price up by 0.7 per cent, to close at a weekly high of €2.87.
The week’s two other gainers were Plaza Centres plc and Maltapost plc. The postal services company closed the week at an all-time high closing price of €1.422 after six deals of 13,164 shares. The company’s board of directors is due to meet on May 8 to consider and approve the company’s interim results for the six months ended March 31. Plaza Centres shares ended the week at a three-year high of €0.951 after two deals of 27,170 shares.
Despite 110,000 shares of Midi plc being traded in three deals the price of the equity closed unchanged.
On the corporate bond market, 18 issues were traded, of which 11 rose, six closed unchanged, whereas the 5.35 per cent Bank of Valletta plc sub euro 2019 was the only issue to close in the red. Total turnover rose to €378,600. There were strong gains in the bonds of Mediterranean Investment Holdings plc (MIH), with the euro-denominated issue, which matures between 2015 and 2017 and pays 7.15 per cent, recovering some 2.2 per cent. Meanwhile, the MIH issue paying six per cent and maturing in 2021 recouped 3.3 per cent. A 2.8 per cent advance was also recorded by the 4.25 per cent Bank of Valletta plc euro notes 2019, ending the week at €109.
Last Friday, International Hotel Investments plc announced the issue of €45 million 5.75 per cent unsecured bonds maturing in 2025 with a nominal value of €100 per bond, issued at par. The company will redeem the €35 million 6.25 per cent unsecured bonds due 2015-2019 on July 11. Preference for the new bond will be granted to bondholders surrendering the maturing bond. Last Friday was the cut-off date for such elgibility. Trading in the maturing bond will be suspended as from tomorrow.
In the sovereign debt market, losses were mostly recorded in those issues approaching maturity, as longer-dated issues continued to trend higher. Turnover shrank by 8.5 per cent to €6.98 million, of which the three per cent MGS 2040 (I) r accounted for 39.1 per cent of total trading value. At a price of €120 – a week-on-week gain of 1.4 per cent – the issue offers a yield of just under two per cent if held till maturity.
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.