The year-to-date gain in the Malta Stock Exchange (MSE) index reached 15.3 per cent after last week’s 1.56 per cent rebound, closing at a multi-year high of 3,841.516 points – a level last witnessed in February of 2011.
The index’s weekly gain was the highest in nine weeks, buoyed by significant gains in shares of International Hotel Investments plc (IHI), Simonds Farsons Cisk plc (SFC), RS2 Software plc, and Go plc. The gains more than offset losses in the only two fallers for the week – Bank of Valletta plc (BOV) and Malta International Airport plc (MIA) – which in aggregate account for almost a third of the index’s overall market value.
In the equity market, turnover increased by 26.2 per cent to €1.40 million.
Activity was spread over a total of 15 equities, of which eight increased in value, two fell and five closed unchanged.
In the banking sector, HSBC was the most traded security, accounting for around 30 per cent of total trading value. The banking equity traded between €1.80 and €1.86. Nevertheless, losses earlier in the week were recovered by Friday’s session.
The bank announced that its board of directors are due to meet on August 3 to approve the group’s interim results for the period ending June 30, and to consider declaring an interim dividend.
Its peer, BOV, registered a drop of 1.3 per cent as 47 deals of 93,069 shares were struck. The equity closed the week at €2.27.
On the other hand, shares of Lombard Bank Malta plc and Fimbank plc strengthened by 1.5 and two per cent respectively.
The former closed at a three-year high of €1.98, whereas Fimbank advanced to a three-month high of $0.46. Both securities were active on a relatively thin volume, which in total represented less than two per cent of total traded value.
Last Monday, in its interim directors’ statement, Lombard Bank said that since the beginning of 2015, the bank reported a fall in net profit compared to the same period in 2014.
Fimbank published its interim directors’ statement last Tuesday, highlighting how changes in senior management and a revised business strategy is being undertaken for the group to return to sustainable profit levels within a relatively short timeframe.
The index’s positive performance was significantly enhanced as a result of IHI’s double-digit gain in Friday’s trading session. Buying interest last Friday lifted the equity’s price up by 10.3 per cent, to close at its 10-month high of €0.75. The company’s next annual general meeting will be held on June 11.
Solid single-digit gains were also recorded in shares of SFC, albeit on thin volume, as five transactions of just 1,149 shares pushed the equity’s price to a fresh record high of €3.75.
Likewise, both RS2 and Medserv plc shares closed at their record closing price of €3.30 and €2.20, respectively. The IT services company was active in the third highest turnover for the week, worth €205,500, whereas Medserv shares retouched their all-time high over a turnover of €20,000.
Following a 0.3 per cent loss the previous week, Go shares rebounded by 1.2 per cent, as 45,510 shares changed hands in 18 transactions. The telecommunications company topped its recently reached seven-year high of €3, after closing the week at €3.025.
The week’s other gainer was Santumas Shareholdings plc, whose shares inched 0.3 per cent higher following two deals of 10,000 shares.
Meanwhile, shares of MIA shaved off 2.6 per cent from their previous week’s closing price following 22 deals worth €122,900 to settle at a two-month low of €3.359.
Malita Investments plc published its interim directors statement last Monday, covering the period from January 1 to date.
During this period, the company’s performance was in line with that projected, and the directors expect that this performance will continue to be in line with its forecasts for the six-month period ending June 30.
No change in the company’s share price was recorded during the week despite nine deals of 76,950 shares being executed.
The week’s other non-movers were Maltapost plc, Mapfre Middlesea plc and Tigné Mall plc – accounting for around 3.5 per cent of total trading value.
In the corporate bond market, 18 out of the 26 traded issues ended the week in positive territory, three fell out of favour, while five closed unchanged.
Total turnover shot up from €438,900 to €2.13 million. The recently issued 5.75 per cent IHI plc unsecured euro 2025 bond soared by 9.25 per cent to €109.25 on its first week of trading – thus yielding 4.57 per cent till maturity. Significant gains were recorded in two other IHI bonds – the 5.8 per cent IHI 2021 and the 5.8 per cent IHI 2023 issues, which strengthened by 4.5 and 4.8 per cent, respectively.
In the sovereign debt market, total turnover shrank by some 72 per cent, as selling pressure on long-dated issues eased. In fact, out of the 24 traded stocks, 18 closed in the black, whereas most of the losses were recorded in those issues nearing maturity.
This rebound in bond prices was in line with their European counterparts, as earlier last week, a member of the European Central Bank’s executive board said the ECB intends to increase its €60 billion a month of bond purchases in May and June ahead of the summer months, during which investors’ activity tends to decrease.
The long-dated three per cent MGS 2040 (I) issue ended the week up by 1.4 per cent to €112.48, after failing to sustain an intra-week high of €113.50.
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.