The Malta Stock Exchange (MSE) index resumed its upward trajectory, closing the week and month up by 2.2 and 2.86 per cent respectively to reach a fresh seven-year high of 4,207.572 points.
The equity market more than recovered the previous week’s 0.95 per cent decline as gains in shares of Go plc, Mapfre Middlesea plc (MMS) and Malta International Airport plc (MIA), strongly contributed to the index’s weekly gain. In the first seven months of the year the index has gained 26.3 per cent.
Last week, total turnover jumped by 130.6 per cent to €2.94 million as 19 securities were traded, of which 11 gained ground, while losers and non-movers tallied at four.
In the financial services sector, MMS shares headed the list of gainers. They registered a double-digit gain in reaction to the group’s strong interim results announced the previous week.
MMS was active in 20 transactions of 36,276 shares, to close the week at a six-year high of €2.011 – more than double their price at the start of the year.
In the same line of business, Lombard Bank Malta plc shares advanced by a further 5.1 per cent to close the week at a three-year high of €2.049. They were active in the third highest turnover for the week, worth €503,900.
Likewise, Fimbank plc strengthened by 5.3 per cent after a relatively thin trading volume of 2,810 shares. The banking equity’s share price closed the week at the $0.495 – a six-month high.
BOV shares more than reversed its previous week’s 0.3 per cent decline to close at its two-week high of €2.30 as 55 transactions of 170,351 shares were executed.
HSBC shares closed €0.001 above their two-week low of €1.79 reached on Thursday, as 114,093 shares changed hands in 25 deals. The company is expected to publish its interim results tomorrow.
Telecommunications company Go plc recovered most of the previous week’s lost ground as buying interest pushed the equity’s share price to €3.50 after the highest turnover for the week, worth €770,200.
Last Sunday, the company issued its second announcement regarding its majority shareholder, Emirates International Telecommunications Malta Ltd (EIT).
EIT reported that its intention to dispose of its 60 per cent shareholding in Go follows the successful sale earlier this year of its investment in Interoute, a European network provider. EIT will continue to maintain its shareholding in Malta Properties Ltd after the demerger.
EIT said it has only just started the process of evaluating its options and has not yet approached or identified any buyer for its stake, and when it did so it would seek to safeguard the interests of all Go shareholders.
MIA shares touched an all-time high of €4 on Monday, ahead of the group’s interim results published last Wednesday for the six months ended June 30.
Revenue for the period under review stood at €29.9 million, as opposed to €28.1 million registered in the comparable period in 2014. Profit before tax increased by 9.6 per cent to €11.4 million.
Moreover, the board of directors approved the payment of an ordinary net dividend of €0.03 per share payable on all shares settled as at close of business on August 12.
MIA shares ended the week at €3.95, marginally lower than their all-time high of €4, after the second highest turnover of the week, worth €551,200.
Shares of Simonds Farsons Cisk plc (SFC) rallied by 6.1 per cent after four deals of just 3,298 shares, closing the week at an all-time high of €5.25. This is equivalent to a year-to-date gain of 72 per cent.
Similarly, Maltapost plc rose by 4.5 per cent to settle at a fresh high of €1.60. It was active in a single deal of 3,364 shares.
Meanwhile, Malita Investments plc shares climbed by 3.3 per cent.
The company reported a profit before tax of €10.69 million, compared with €8.17 million registered in the comparable period ending June 30, 2014. Revenue for the period under review amounted to €3.45 million, a rise of 2.6 per cent from 2014.
The directors approved a gross interim dividend of €0.0144 per share (€0.00936 net) payable on September 11 to holders of Ordinary A and Ordinary B shares on the company’s share register as at August 10.
The other gainers for the week were Midi plc and Tigné Mall plc, up by 1.5 and 0.6 per cent, respectively. Both were active on relatively thin volume.
In the IT services sector, RS2 Software plc shares ended Friday’s session at €2.19 after a total turnover of €225,600. In the same line of business, a single deal of 2,000 shares in 6PM Holdings plc was struck at £0.76.
The worst performer for the week was IHI, as its share price dipped by 3.5 per cent on nine deals of 65,571 shares. The other faller for the week was Plaza Centres plc, down by one per cent as five deals of 63,500 shares were executed.
No change in price was recorded in shares of Loqus Holdings plc, Grand Harbour Marina plc and Medserv plc. All three shares were traded on low volumes.
In the corporate bond market, total turnover shrank by 57.4 per cent to €918,300. Out of the 31 traded issues, 15 increased in value, six closed in the red, while 10 remained unchanged.
Last week, 6PM Holdings plc announced that the issue of €13 million 5.1 per cent bonds 2025 had been oversubscribed. Consequently, the intermediaries offer scheduled for last Tuesday did not take place.
Meanwhile, in the sovereign debt market, total turnover fell from €25.94 million to €7 million, spread over 25 issues, of which eight lost ground, twice as many inched higher, while one closed unchanged. Gains were observed in long-dated issues as yields continued to ease lower.
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.