The MSE Index continued to trend higher recording its sixth consecutive weekly gain and peaking to a fresh seven year of 4,351.058 points last Friday. The index strengthened by 0.16 per cent on the week, as solid gains recorded by Maltapost plc, Lombard Band Malta plc and Bank of Valletta plc (BOV) pushed the index higher and more than off-set declines witnessed across Malita Investments plc and HSBC Bank Malta plc (HSBC) shares. Year-to-date the MSE index has registered gains of 30.62 per cent.
In the equity market, turnover decreased 27 by per cent to €718k – spread over a total of 12 equities, of which six moved higher, four fell in value, and two closed unchanged.
Following four weeks of inactivity, the share price of Maltapost plc rose to an all-time high of €1.70, as four trades of 7,146 shares were dealt. The equity rose by 3.9 per cent on the week, and thus recorded a 13.3 per cent gain over the third quarter.
In the financial services sector, Lombard shares closed 2.4 per cent higher to end the week at €2.15, over a turnover worth €143k, representing 20 per cent of total turnover. Similarly, BOV shares advanced for the fourth consecutive week – increasing by a further 1.8 per cent to end the trading week at €2.39, having traded over the highest turnover, worth €238k. During the week, BOV announced that the next annual general meeting will be held on December 17.
Meanwhile, the share price of HSBC fell by 2.1 per cent to €1.81, as 62,557 shares changed hands over 25 trades. Over the third quarter the share price of Lombard and BOV gained 17.4 per cent and three per cent respectively, while HSBC shares remained unchanged.
In the same line of business, Mapfre Middlesea plc shares recorded the second best performance for the third quarter – up by 24.9 per cent as the equity ended the month of September at €2.279. Last week, its share price rose by 0.04 per cent to close at €2.28, active across seven deals of 13,308 shares.
On the back of positive interim financial results, the share price of Simonds Farsons Cisk plc (SFC) shares strengthened by 2.7 per cent on the week, to close at a fresh all-time high of €5.751, over seven trades of 4,332 shares. During the week, SFC announced that for the six months ending July 31, 2015, the group recorded a profit before tax of €4.8m, compared to €4.2m registered in 2014. Revenue for the period under review amounted to €44.2m, a rise of 7.8 per cent from 2010. Earnings per share increased to €0.211. The group also announced an interim dividend of € 0.0333 per ordinary share which shall be paid on October 20, 2015 to ordinary shareholders who are on the register as at October 6, 2015.
The group’s positive results were mainly due to a buoyant performance of the local economy, particularly tourism, successful marketing of the beer portfolio, an increase in imported beverages and an improved performance from the franchised food business. The equity closed the third quarter at €5.75 – climbing 24.7 per cent higher over the summer months.
The shares of telecommunications company GO plc inched 0.1 per cent higher to €3.459, as nine deals of 14,500 shares were traded, and thus climbing 13.1 per cent higher over the third quarter.
Elsewhere, the logistics and services company for oil and gas, Medserv plc halted its six week winning streak with a 0.2 per cent decline, to close the week at €3.095, as four deals of 3,770 shares were struck. Over the quarter, the equity headed the list of gainers as its share price rallied by 44 per cent.
Meanwhile, two trades of 30,000 shares dragged the share price of Malita Investments plc down by 5.4 per cent, to €0.88 while Malta International Airport plc shares added to the 0.5 per cent decline registered the previous week as the equity retreated by a further 0.75 per cent to €3.851 following four trades of 6,470 shares. Despite the decline, MIA posted a solid 14.7 per cent gain over quarter three, while Malita Investments retreated by 8.3 per cent.
In the IT services sector, RS2 Software plc shares remained unchanged at €2.51, over a single trade of a scant 1,000 shares. The equity strengthened by 27.2 per cent over the summer months. Similarly, no movement was noted last week in the share price of International Hotel Investments plc, which remained at the €0.80 level, having traded over a turnover worth €40k.
In the corporate bond market, turnover increased from €582k to €1.27m. Out of the 25 traded issues, eight gained and seven fell while 10 closed unchanged. The 5.3% United Finance Plc Unsecured € Bonds 2023 issue ended the week up by 2.8 per cent at €108.50, on one trade of 25,000 nominal. Meanwhile, the 7% Grand Harbour Marina plc € 2017-2020 issue sank by 5.4 per cent to €107 over a turnover of €10k.
In the sovereign debt front, total turnover nearly doubled week-on-week, to €7.26m. Activity was spread across 24 issues, of which 15 headed north and nine lost ground. The 3% MGS 2040 (I) issue recorded the best performance of the week as the bond edged 1.2 per cent higher to €107.40, over 50 deals of 497,200 nominal. Meanwhile, the 3.75% MGS 2017 (IV) issue inched 0.5 per cent lower to €106.94, as one trade of 15,000 nominal was dealt. The 5.25% MGS 2030(I) issue was the most liquid government stock, having traded over a turnover worth €1.96m, to end the week 0.3 per cent higher at € 139.49.
During the highly volatile quarter, the European investment grade issues outperformed high yield securities, and thus provided a safe haven to investors. In line with the broader European sovereign debt market, during the third quarter long dated local government stocks advanced as yields declined while short dated issues recorded slight declines, as maturity nears.
Last Thursday, the Treasury announced that the prices for the new Malta Government Stocks Issue have been set at €106.25 for the 2% MGS 2020 (V) F.I. and at €102.50 for the 2.3% MGS 2029 (II) F.I. The offer will open for retail clients from tomorrow till Wednesday or earlier at the discretion of the accountant general.
This article, which was compiled by Jesmond Mizzi, managing director of Jesmond Mizzi Financial Advisers 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, a member of the Malta Stock Exchange and a member of 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 more information, contact Jesmond Mizzi at 1/2 St Joseph High Street, Ħamrun, on 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.