The Malta Stock Exchange (MSE) index ticked another notch higher, closing the week 1.42 per cent higher at 4,078.733 points – a fresh seven-year high and its fifth consecutive weekly gain.
The index’s positive performance was buoyed as a result of solid single-digit gains in shares of Simonds Farsons Cisk plc (SFC), Go plc, RS2 Software plc, and Medserv plc – all of which traded at multi-year high prices. On the other hand, heading the list of fallers were shares of Malita Investments plc and Mapfre Middlesea plc (MMS).
Total turnover increased by 64 per cent to €1.91 million, as 17 issues were negotiated, of which 10 gained in value, three fell out of favour, while four closed unchanged.
Trading in shares of telecommunications company Go plc accounted for the highest turnover for the week, worth €553,000. The buying interest continued to lift the equity’s price higher, with the shares strengthening by 5.1 per cent to close at their eight-year high closing price of €3.30, after failing to sustain a high of €3.40 reached in intra-day trading last Friday.
Subsequent to the company’s announcement on May 5, declaring the company’s intention to reorganise its corporate structure, the Go’s board of directors will convene an extraordinary general meeting on July 22 to discuss the matter and to consider and seek approval of various resolutions.
A similar gain of 5.3 per cent was recorded in RS2, whose shares closed at an all-time high price of €1.79, adjusted for the share-split effective as of last Monday. The IT services company was active in the week’s second highest turnover of €454,000.
Medserv plc appreciated by 6.5 per cent following 18 transactions of 50,105 shares. The logistics services company for oil and gas ended the week at a fresh record price of €2.30.
Heading the list of gainers were shares of SFC, which locked in a 7.7 per cent gain to close at their all-time high of €4.05 as three deals of just 775 shares were struck.
Last week, in their interim directors’ statement, the SFC board reported that trading for the first quarter of the financial year has been steady and in line with expectations. The peak summer months remain a critical period in determining the group’s profitability. The board added that the development of the new state-of-the-art €27 million beer packaging facility is advancing on schedule and is planned to be completed by April 2016.
In the banking industry, HSBC Bank Malta plc rose by 1.1 per cent, following a 2.2 per cent fall the previous week. The banking equity’s share price closed the week at its intra-week high of €1.82, as 59,094 shares changed hands in 23 deals. Its peer, Bank of Valletta plc was active in 46 deals of 110,621 shares, to close unchanged at €2.29.
In the same line of business, a single deal of 5,821 Lombard Bank Malta plc shares was struck at €1.825, representing a week-on-week gain of 0.2 per cent.
No change in price was recorded in the share price of Fimbank plc, as eight deals of 93,993 shares were executed at $0.465.
Following the 11.2 per cent rise in the share price of International Hotel Investments plc (IHI) the previous week, 39 transactions worth €172,000 lifted the equity’s price by another 2.1 per cent to a fresh 16-month high of €0.92, just €0.01 shy of its weekly high reached in intra-day trading during the week.
Likewise, Plaza Centres plc shares recorded a weekly gain of 2.2 per cent, to retouch €0.99 after one deal of a mere 1,658 shares.
The week’s other gainers were Midi plc, registering a 1.9 per cent advance on six deals of 50,000 shares, and Grand Harbour Marina plc, up by 0.5 per cent on one deal of just 220 shares.
MMS shares retreated from their six-year high of €1.86 reached the previous week, as 11 deals of 12,868 shares dragged the equity’s price down by 2.2 per cent, to close just above their weekly low of €1.817, closing the week at €1.82.
Special purpose vehicle Malita Investments plc ended the week at its four-week low of €0.90, following six transactions of 18,710 shares.
Meanwhile, Malta International Airport plc edged marginally lower, as its share price dipped by 0.3 per cent after 20 deals of 40,877 shares.
The week’s other non-movers were shares of Maltapost plc and Tigné Mall plc, both of which were active on relatively thin volume.
In the corporate bond market, total turnover rose by 56.7 per cent to €1.22 million, spread over 25 issues, of which 11 rose, five ended in the red, while nine closed unchanged.
Strong gains were recorded in the six per cent Corinthia Finance plc euro 2019-2022 issue, which gained 3.5 per cent in value, while the 5.9 per cent HSBC Bank Malta Plc euro sub 2018 issue shrank by 3.6 per cent, as maturity nears.
On the sovereign debt market, all the 25 traded stocks closed in the red, after a total turnover of €30.92 million, as opposed to €24.97 million the previous week. Declines were most significant across longer-dated issues with volume being higher in these stocks.
The 4.45 per cent MGS 2032 was traded in the highest turnover for the week, worth €7.11 million, while the three per cent MGS 2040 (I) r headed the list of fallers, closing the week down by 1.5 per cent. This downward trend over the past two weeks contrasts with the trend in European sovereign debt.
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.