The Malta Stock Exchange (MSE) Index snapped a nine-week winning streak, as losses across large capitalised shares more than offset solid single-digit gains of other equities which traded last week. Contributing to the index’s negative performance were, Go plc, which headed the list of fallers, followed by International Hotel Investments plc (IHI), HSBC Bank Malta plc (HSBC) and, to a lesser extent, Bank of Valletta plc (BOV). On the other hand, strong advancements were recorded across other financial services companies, namely, Lombard Bank Malta plc, Mapfre Middlesea plc (MMS), and FIMBank plc; while shares of Malta International Airport plc (MIA) strengthened further, to reach a fresh record high. The index retreated from its seven-year high of 4,155.626 points, to close the week 0.95 per cent lower at 4,116.226 points.
Total turnover declined by a third, from €1.92 million to €1.27 million, as 16 securities were negotiated – of which eight rose in value, half as much fell out of favour, while another four closed unchanged.
Selling pressure was recorded across Go plc, whose share price plunged by 12.5 per cent from a nine-year high closing price of €3.60 reached the previous week, closing the week at €3.15. The sharp decline followed a company announcement published last Thursday, in which Emirates International Telecommunications Malta Limited (“EITML”), who own 60 per cent of Go, expressed its intention to dispose its shareholding within Go over the short term. This took the market by surprise as the shareholders had just approved the spin-off recommended by the directors. Activity in the telecommunications company stood at €438k, or 34.4 per cent of total trading value.
In the financial services sector, MMS rebounded by 7.2 per cent on the back of strong interim results published on Thursday. The Groupe tax of €15.18 million, compared to €8.21 million registered in the comparable six month period in 2014. The company stated that all Group companies registered improved results with the main driver being the Group’s life operations with MSV Life plc, registering higher profits than the comparative period last year, mainly resulting from a one-off saving from renegotiation of the reinsurance treaty.
Lombard Bank Malta plc also surged by seven per cent as eight trades of 58,151 shares were executed. The banking equity closed at its two-month high of €1.949.
Meanwhile, FIMBank plc more than recouped its previous week’s 3.2 per cent contraction in price, to close the week 4.2 per cent up at $0.47.
In the same line of business, HSBC shares partially reversed the previous week’s 2.9 per cent advancement, registering a 1.6 per cent decline on 19 transactions of 53,513 shares. Its peer, BOV, dipped 0.3 per cent in value over the second highest turnover for the week, worth €299k.
The other faller for the week was IHI, extending its previous decline of 0.6 per cent by 1.8 per cent, to end the week at the €0.835 price level – active over four deals of 15,503 shares.
Strong gains were also recorded across shares of MIA, strengthening by a further three per cent as 29,942 shares changed hands. This follows positive traffic results and revised passenger growth forecast for 2015. MIA anticipates passenger traffic of around 4.5 million by the end of this year, equivalent to a 200,000 increase over 2014.
The postal services company, MaltaPost plc, appreciated by 1.4 per cent, to close at its one-month high of €1.531. Such gains were witnessed on a relatively thin volume, worth €11.2k.
Both shares of Medserv plc and Tigné Mall plc gained 0.6 per cent in value. The logistics and services company for oil and gas was active over three trades of just 4,500 shares to close at its all-time high of €2.37, while Tigné Mall plc shares were traded on two transactions of 30,000 shares.
Following one month of inactivity, Grand Harbour Marina plc (GHM) shares advanced by 0.8 per cent after adjusting the price for the share-split effective as from July 9, 2015. Activity in GHM shares was witnessed over one deal of a mere 2,500 shares,
Last Tuesday, the board of directors of Plaza Centres plc approved the company’s interim unaudited financial statements for the six months ended June 30, 2015. The company registered a profit before tax of €777k, compared to €715k registered in the comparable period of 2014. Revenue for the period under review amounted to €1.23 million, an increase of 6.7 per cent from the period ended June 30, 2014. Earnings per shares (EPS) increased to €1c7. No change in price was recorded over the week, as a single deal of 67,925 shares was struck at the €0.96 price level.
The other non-movers for the week were Simonds Farsons Cisk plc, RS2 Software plc and Malita Investments plc.
On the corporate bond front, total turnover increased by 38.1 per cent as 30 issues were negotiated – of which 10 traded higher, six lost ground, while 14 closed the week unchanged. Over half of the trades were dealt within the 5.1% PTL Holdings plc Unsecured € 2024, which edged minimally lower by 0.3 per cent, to close at €111. Trading in the opposite direction was the 6% Island Hotels Group Holdings plc € 2024, up by 0.9 per cent at €111.
In the sovereign debt market, there was a four-fold increase in turnover, from €5.54 million to €25.94 million. Out of 27 issues traded, four lost some value, one traded flat while the rest rose in value, as yields declined. Significant gains were recorded across long-dated issues, with the 4.45% MGS 2032 (II) and the 3% MGS 2040 (I) r, up by 1.8 and 1.7 per cent, respectively – this mirrors the trend across the broader sovereign debt market over the past week.
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, Hamrun or on Tel: 21224410 or email jesmond.mizzi@jesmondmizzi.com.