Following two weeks of gains, last week the Malta Stock Exchange (MSE) Index eased 0.2 per cent, to close at 3,782.405 points. This decline was mainly attributable to losses in the shares of International Hotel Investments plc (IHI) and HSBC Bank Malta plc, which more than offset strong gains in Lombard Bank Malta plc and Maltapost plc.
Turnover in the equity market shrank by 37.8 per cent to €1.11 million, as 15 securities were traded, of which seven rose in value, six fell and two closed unchanged.
Lombard Bank Malta plc shares rose by 3.2 per cent to close the week at a four-week high of €1.95 after two deals of just 1,972 shares. The surge in the banking equity’s share price reflects the positive interim results of it subsidiary, Maltapost plc, announced last week.
HSBC shares were active in the highest turnover for the week, representing 26.8 per cent of total trading value. Selling pressure dragged the equity’s share price down to an intra-week low of €1.845, before partially recovering by the end of Friday’s trading session, to close at €1.85.
Last Friday afternoon, the bank published an interim directors’ statement for the period January 1 to May 15, 2015. In it, the bank’s chief operating officer said that “operating conditions remain difficult but the underlying performance of the three main business segments – retail banking and wealth management, commercial banking and global banking and markets – has been positive in the first quarter”.
Bank of Valletta plc opened the week lower at €2.28 as it turned ex-dividend, although buying interest towards the end of the week pushed the bank’s share price back to €2.30 after 38 deals of 66,337 shares.
Meanwhile, Fimbank plc shares partially reversed the previous week’s one per cent fall as three deals of 12,100 shares pushed the equity’s price 0.2 per cent higher.
A single deal of a mere 144 shares in Mapfre Middlesea plc was struck at €1.221, resulting in a week-on-week gain of 0.1 per cent.
Maltapost plc headed the list of gainers as its share price strengthened by 3.5 per cent, albeit on thin volume of just 2,569 shares. This follows the company’s interim results released last Tuesday for the six months ended March 31, 2015. The company registered a pre-tax profit of €2.5 million, compared to €1.2m in 2014. Revenue for the period amounted to €13.3m, a 13.8 per cent increase from 2014. Earnings per share (EPS) increased to €0.05.
RS2 Software plc locked-in a weekly gain of 0.6 per cent as 9,629 shares changed hands in eight transactions. Last Tuesday, the company announced that the group had signed a new licence agreement with a bank in Vietnam. The group also concluded a letter of intent with a UK processing company and has now advanced to the stage of contract negotiation.
In a separate announcement, the company reported that it will be recommending to its shareholders in the next AGM a share split of two shares for every one held. The shares will be allotted to registered shareholders as at June 16.
6PM Holdings plc shares closed the week unchanged as two deals of 26,041 shares were executed. An interim directors’ statement last Friday reported that a new software licence model was introduced in the first months of this year.
The company is also looking into launching a consumption model (software as a service) for smaller health providers. 6PM is also planning to acquire another ICT health business in the UK.
Go plc shares failed to sustain their seven-year high of €3 reached the previous week as 27 deals of 68,715 shares led to a weekly decline of 0.3 per cent, to close at €2.99. Go shares were also traded at a weekly low of €2.965.
Last week’s main laggard was IHI, whose shares erased all gains registered earlier this month after 12 deals of 78,799 shares were executed. In an interim directors’ statement last Monday the company said that IHI hotels and its 50 per cent associate Corinthia London Hotel continued to perform better in the first quarter compared to the same period in 2014, other than the hotels in Tripoli and St Petersburg, where external force majeure factors continued to affect demand for accommodation.
The week’s worst performer was Malita Investments plc, as 11 transactions of 91,910 shares pulled down the equity’s price to a 10-week low of €0.87.
In its interim directors’ statement, Medserv plc announced that in the first quarter of 2015 the company continued to meet its turnover and profit margin targets. Nevertheless, by Friday’s closing session, the equity’s share price fell by 2.1 per cent to close at €2.155.
Malta International Airport plc (MIA) shares dipped by 0.4 per cent following 11 deals of 17,270 shares. In its interim directors’ statement the company reported that MIA remained sound and its performance has been marginally better than expected. Passenger traffic for the first four months of the year reached an overall growth of 5.1 per cent over the same period last year. The outlook for the summer season looks positive as well.
The week’s two other gainers were Plaza Centres plc and Midi plc. The former traded for the first time in three weeks, whereby three deals of 100,000 shares were struck at €0.951, whereas Midi plc shares strengthened by a further 1.8 per cent on three deals worth €31,400.
Turnover in the corporate bond market almost halved, from €856,600 to almost €438,900. Ten out of the 23 traded issues gained ground, five closed in the red and the remaining eight closed the week unchanged.
In the sovereign debt market, all the 27 traded stocks, except two, ended the week in negative territory, as yields in European government bonds continued to tick higher. Over the week, the biggest decline was recorded in the long-dated three per cent MGS 2040 (I) r, which was down by two per cent to €110.96.
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.