The Malta Stock Exchange (MSE) Index kicked off the week with a strong start, as four equities elevated the index to a fresh seven year high at 4,314.477 points last Tuesday, but gave up a portion of this advance throughout the week, eventually settling with a moderate 0.39 per cent gain. The MSE index ended the week at 4,312.696 points, buoyed by sold gains across Bank of Valletta plc (BOV), Medserv plc (MDS) and FIMBank plc (FIMB).
In the opposite direction, HSBC Bank Malta plc (HSBC), International Hotel Investments plc (IHI) and Plaza Centres plc (PZC) were the main laggards.
Total turnover in local equities jumped by 44.4 per cent to €1.11m, spread across 14 shares, of which gainers and fallers tallied at six, and two closed the week unchanged.
In the financial services sector, FIMB shares rallied by 11.1 per cent to close at $0.50, as eight deals of 75,367 shares were struck, following four weeks of inactivity.
BOV achieved a 10 week high at €2.32, last Thursday, to then end the week slightly lower at €2.31 recording a 2.2 per cent gain on the week. The equity was active over the highest turnover, worth €262k, representing 24 per cent of total turnover. Last Wednesday, BOV announced that it has proceeded with the submission of an application for the approval of a prospectus for a 12-month Subordinated Debt Issuance Programme of a maximum principal amount of €150m. The notes issued will form an integral part of BOV’s capital plan, aiming to strengthen Tier 2 Capital as required by European banking regulations.
Its peer, HSBC retracted by 0.3 per cent over the second highest turnover, worth €241k, to close the week at €1.84. Similarly, the share price of Lombard Bank Malta plc ended the week lower at €2.10 – down by 0.9 per cent, as 10 deals of 67,322 shares were traded.
Meanwhile, the logistics and services company for oil and gas, Medserv, maintained its upward trajectory as the equity closed the week 1.7 per cent higher at yet another all-time high of €3.05, as two trades of 9,987 shares were executed. During the week, the company announced that an Extraordinary General Meeting (EGM) will be held on October 12 to approve a resolution to authorise the company to disclose to any bona fide offer or such information in relation to the Medserv group of companies, including unpublished price-sensitive information, as may be necessary to enable any bona fide offer and its advisers to make, confirm, withdraw or modify any bona fide offer made to Medserv p.l.c.
In the IT services sector, bullish momentum remains evident towards RS2 Software plc as 16 trades of 38,216 shares pushed the share price to a fresh all-time high of €2.52 – up by 0.8 per cent on the week. In the same line of business, 6PM Holdings plc shares remained unchanged at the £0.70 price level, having traded over thin volume of 5,530 shares.
Elsewhere, two trades of 414 shares in Simonds Farsons Cisk plc extended its share price by 0.9 per cent to close at a record high of €5.60. The company has scheduled a board meeting for September 30, to consider and approve the financial statements for the six months ending July 31, and to consider the payment of an interim dividend.
Meanwhile, Malta International Airport plc shares added a further 0.1 per cent to the previous week’s 1.4 per cent gain, to close at €3.90, as 11 deals of 12,755 shares were dealt.
In the property sector, Plaza Centres plc shares retracted from their three-year high of €1.05, as three deals of 83,000 shares dragged the equity 6.7 per cent lower, to close at €0.98. In the same line of business, the share price of Malita Investments plc ended the week at €0.93 - down by 0.9 per cent on the week, as 75,000 shares changed hands over four deals.
Among the list of fallers, trading in IHI shares partially erased its 2.6 per cent gain achieved in the previous week as the equity fell by 2.5 per cent to €0.78, following nine deals of 45,442 shares.
The share price of GO plc snapped its two week winning streak as the equity weakened by 1.4 per cent, to close the week at €3.45. The equity was active across 11 trades of 13,261 shares. The company announced that an Extraordinary General Meeting (EGM) will be held on October 29, to approve a resolution of authorisation to seek bids for the company’s entire issued share capital and to disclose information, including price sensitive information, as considered appropriate.
No movement was noted in the share price of Mapfre Middlesea plc as the equity traded at €2.25, as 7,230 shares changed hands.
In the corporate bond market, 24 issues were active of which nine headed north, six declined and nine closed the week unchanged. Total turnover increased from €465k to €1.1m. Strong gains were recorded in the 4.8% Bank of Valletta Plc Sub € 2020 issue, having appreciated by 3.6 per cent, closing at €108, while the 6% Simonds Farsons Cisk plc 2017 – 2020 and the 5% Hal Mann Vella Group plc Secured Bonds € 2024 issues both shrunk by three per cent, to close at €107.60 and €107, respectively.
The 5.3% Mariner Finance plc Unsecured € 2024 issue, was the most liquid bond, over a turnover worth €245k – 22 per cent of total turnover, and closing the week unchanged at €111.11.
From the sovereign debt front, a four fold increase in turnover to €34.1m was recorded, spread across 20 issues, of which five advanced while 15 lost ground.
The 5.1% MGS 2022(I) issue recorded the best performance for the week, as the bond edged 0.2 per cent higher, to close at €126.02 while the 4.3% MGS 2033 (I) issue closed the week at €125.88 – down by one per cent, over 12 trades worth €2.3m. The 4.5% MGS 2028 (II) traded over the highest turnover, worth €14.3m.
In Europe, yields across the broader sovereign debt market headed north up until Thursday’s session to then sharply contract last Friday following the announcement by the United States Federal Reserve that interest rates were kept unchanged – primarily as a result of a softening inflation outlook, which stands far from the Fed’s two per cent target, and as concerns over China’s economic slow down reverberated throughout the global economy.
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: 21224410 or email jesmond.mizzi@jesmondmizzi.com.