The Malta Stock Exchange (MSE) index continued to trend higher, locking in a weekly gain of 0.65 per cent, to close at a fresh seven-year high of 4,155.626 points.
The index’s positive performance was significantly enhanced by gains in the share prices of HSBC Bank Malta plc, Go plc, Malta International Airport plc (MIA), RS2 Software plc and Simonds Farsons Cisk plc (SFC) – which account for around 44 per cent of the stock market’s overall value.
These gains more than offset declines in the shares of Bank of Valletta plc (BOV), Mapfre Middlesea plc, Fimbank plc and International Hotel Investments plc (IHI), which represent another 43 per cent of the index’s total market value.
Activity was spread over a total of 17 securities, of which eight rose in value, five closed in the red, and four closed unchanged. Turnover increased by 4.2 per cent to €1.92 million, with trading in shares of BOV and Go representing 46.7 per cent of total trading value.
In the financial services sector, HSBC shares headed the list of gainers, as its share price rebounded by 2.9 per cent as 119,465 shares changed hands in 42 deals to close €0.01 shy of its weekly high of €1.86.
BOV, lost further ground, to end the week down by 0.8 per cent at €2.281 in the week’s second highest turnover worth €416,000. In its interim directors’ statement, the company reported that during the financial period from April 1 up to July 13, 2015, no material events or transactions that would have an impact on the financial position of the bank or the group took place.
Financial performance to date is in line with expectations. Demand for credit was mainly driven by strong growth in home loans, boosted by government measures aimed to enhance the ability of first-time buyers to acquire property.
Customer deposits continued to grow in all segments. The group registered a satisfactory increase in commission income in key business lines. Meanwhile, costs incurred exceeded those of the comparative period last year, in line with expectations, due to the higher regulatory costs applicable from this year.
Following three weeks of inactivity, the share price of Fimbank plc shrank by 3.2 per cent as four transactions of 15,823 shares were executed.
Lombard Bank Malta plc was active in a single deal of 5,250 shares at €1.821 – a week-on-week gain of 0.05 per cent.
Meanwhile, Mapfre Middlesea plc shares retreated by four per cent to close at €1.67, as nine deals of 11,076 shares were negotiated, ahead of its interim results due to be announced on Wednesday.
SFC shares were second to none as one deal of just 101 shares was struck at a price of €4.95 – representing a weekly gain of 6.5 per cent.
Telecommunications company Go plc, topped its recent gains by 1.7 per cent, as buying interest lifted the equity’s price to a nine-year high of €3.60.
Similarly, in the IT services sector, RS2 shares settled the week at yet another record high of €2.25 after 32 deals of 131,918 shares.
On the other hand, no change in price was recorded in shares of 6PM Holdings plc, whose shares were negotiated on relatively thin volume.
Elsewhere, MIA shares were buoyed by strong demand, closing the week at a record high of €3.55. MIA shares were traded in 22 deals worth €249,000.
Maltapost plc shares edged 0.7 per cent higher, to close at a three-week high of €1.51; they were active in two transactions of 5,409 shares.
The other gainer for the week was Tigné Mall plc, which appreciated by 1.2 per cent in value as 27,000 shares changed hands in two deals.
IHI shares extended their recent losses by 0.6 per cent, to close at €0.85 as five deals of 15,137 shares were struck.
Three transactions of 31,600 shares dragged the share price of Midi plc down by 2.9 per cent, to close the week at €0.34.
No change in price was recorded in shares of Plaza Centres plc, Medserv plc, and Malita Investments plc. The latter was active in eight deals worth €121,000.
In the corporate bond market, 31 issues were negotiated, of which 15 gained in value, 10 fell out of favour, while six closed unchanged.
Total turnover rose by 2.1 per cent to €1.56 million, of which 26.7 per cent were dealt in the recently issued 4.5 per cent Izola Bank plc euro unsecured 2025 bond.
The worst performer for the week was the 5.3 per cent United Finance plc unsecured euro bonds 2023 issue, which retreated by 4.7 per cent to €105.5, while the 5.75 per cent Central Business Centres plc unsecured euro 2021 S1T1 issue locked a weekly gain of 2.4 per cent to €107.50.
On the sovereign debt market, total turnover shrank by 25.9 per cent, from €7.48 million to €5.54 million, as 21 issues were traded, of which 15 gained ground, five eased lower and one closed unchanged.
Price movements in long-dated issues were mixed. Gains were witnessed in the three per cent MGS 2040 (I) r and the 4.45 per cent MGS 2032 (II) issues, up by 0.6 and 0.4 per cent, respectively; while the 4.3 per cent MGS 2033 (I) r and the 4.1 per cent MGS 2034 (I) issues fell by 0.6 and 0.2 per cent, respectively.
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.