The Treasury announced that the government will be issuing two new government bond stocks to the public. The two issues will in the aggregate be of €120 million, subject to an over-allotment option of €60 million. The stocks will carry a coupon of two per cent and 2.3 per cent, and will mature in 2020 and 2029, respectively. The offer price will be announced on Thursday and the offer will be open from October 5 to 7, but may close earlier at the discretion of the Accountant General.
Moreover, Hili Properties plc is offering to the public €37 million 4.5 per cent unsecured bonds due in 2025. The bonds are unsecured but guaranteed jointly and seperately by Hili Estates Ltd and Harbour (APM) Investments Ltd. The guarantors will collectively ensure that their aggregate net asset value will amount to not less than €37 million on each financial reporting date.
Meanwhile, Premier Capital plc and PTL Holdings plc announced that €16 million worth of bonds are being reserved for subscription by holders of the 6.8 per cent Premier Capital plc 2017-2020 bonds and of the 5.1 per cent PTL Holdings plc 2024 bonds, who are listed on the respective registers as at September 11. If subscriptions exceed the reserved portion, the unsatisfied excess amount will be considered with the applications submitted by the public, without priority or preference.
Meanwhile, the Malta Stock Exchange index maintained its upward trend, peaking at a seven-year high of 4,344.035 points last Friday – 0.73 per cent higher on the week – despite an initial 0.308 per cent drop on the first day of trading in the holiday-shortened week.
The share price of International Hotel Investments plc (IHI), Bank of Valletta plc (BOV) and Medserv plc (MDS) propped the index higher while falls in Malta International Airport (MIA) and Tigné Mall plc shares dragged the index lower.
Activity was spread over 15 equities, of which six advanced, four lost ground, and five remained unchanged. Total turnover fell by 10.96 per cent week-on-week, to €988,000.
The week’s best performance was recorded in IHI as its share price soared by 2.6 per cent to close at €0.80 after five deals of 19,000 shares. During the week the company announced that a three per cent bonus share issue has been approved in favour of shareholders on the company’s register as at close of business on October 15. The bonus share distribution is to be made out of the company’s capital reserves and will be issued on a pro rata basis.
In the financial services sector, Bank of Valletta plc shares were traded in the week’s second highest turnover worth €233,000, lifting the equity’s price by 1.7 per cent to €2.349. The share price rose for the third successive week to a level last seen in April. The equity was active in 22 deals of 99,569 shares.
Meanwhile, the share price of HSBC Bank Malta plc rose 0.5 per cent to €1.849, following six deals of 23,241 shares. Fimbank plc partially reversed its recent gains as its share price fell one per cent to $0.495, after a turnover worth $20,000.
Mapfre Middlesea plc’s share price climbed 1.3 per cent on the week, to close at a six-and-a-half year high of €2.279, as 4,692 shares were traded in four deals.
Medserv plc extended its recent upward streak to six consecutive weeks having advanced by 1.6 per cent, to notch a fresh all-time high of €3.10 after six deals of 12,800 shares.
The share price of Go plc oscillated between a weekly low of €3.35 and a high of €3.455 at which it closed the week, thus registering a 0.1 per cent gain after the highest turnover worth €458,000, representing 46 per cent of total turnover.
Property equity Tigné Mall plc ended the week 2.1 per cent lower at €0.91, after three deals of 8,500 shares. In the same line of business, Plaza Centres plc and Malita Investments plc remained unchanged at €0.98 and €0.93, on a volume of 80,000 shares and 2,400 shares respectively.
Among the list of fallers, the share price of Malta International Airport plc eased 0.5 per cent lower to €3.88 on thin volume.
In the IT services sector, RS2 Software plc’s share price lost 0.4 per cent for the first time in five weeks, to close at €2.51, as two deals of 3,700 shares were struck prior to the market’s closure on Friday. Meanwhile, 6PM Holdings plc remained unchanged at £0.70 after a single deal of a scant 1,000 shares.
There was no change in the share prices of Simonds Farsons Cisk plc and Midi plc, which closed the week at €5.60 and €0.36 respectively.
On the corporate bond market, total turnover fell by 47 per cent to €582,000, spread across 24 issues, of which nine rose, seven fell and eight remained unchanged.
The 5.5 per cent Mediterranean Investments Holding plc unsecured euro 2020 issue advanced 1.9 per cent to €106, while the 4.5 per cent Izola Bank plc euro unsecured 2025 issue fell 3.5 per cent to close the week at €104.50. The 5.1 per cent 6PM Holdings plc unsecured euro 2025 issue witnessed the highest trading turnover, worth €222,000, representing 38.2 per cent of total turnover.
In the sovereign debt market, activity was spread across 22 issues, with long-dated issues rising, while issues nearing maturity lost in value. Total turnover fell sharply from €34.1 million to €3.7 million, as solid gains were recorded in the 4.3 per cent MGS 2033 (I) r issue as the bond strengthened by 1.4 per cent to close the week at €127.69; it was active in eight deals of 804,000 nominal. The long-dated three per cent MGS 2040 (I) r issue inched 0.1 per cent higher to €106.13, as it failed to sustain an intra-week high of €107.
Government stocks trended in line with European peers, as yields fell until last Thursday, only to reverse on Friday after US Federal Reserve chairwoman Janet Yellen, stressed that US economic forecasts were solid, thus backing the Fed’s anticipation of “an initial increase in the federal funds rate later this year, followed by a gradual pace of tightening thereafter”.
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. Mr Mizzi is a non-executive director of Hili Ventures Ltd, the parent company of Hili Properties plc. For further information contact Mr Mizzi at 1/2, St Joseph High Street, Ħamrun, or on Tel. 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.