The Malta Stock Exchange (MSE) index returned to positive territory with a weekly gain of 1.39 per cent, to close at 4,480.165 points, thus registering a year-to-date gain of 35 per cent. The MSE’s positive performance was buoyed by gains in shares of the newly listed Malta Properties Company (MPC), Fimbank plc and Midi plc. On the other hand, declines persisted in large capitalised equities, namely Bank of Valletta plc (BOV), HSBC Bank Malta plc and GO plc.
Total turnover rose from €1.73 million to €3.86 million, and activity was spread across 17 equities, of which seven increased, eight fell and two remained unchanged.
Last week marked the first trading week for the newly listed equities Malta Properties Company plc (MPC) – the offshoot of Go plc – and Pefaco International plc. MPC stole the limelight as the equity traded at an opening price of €0.46 and closed the week at €0.72, with an intraweek high of €0.799, after the week’s highest turnover worth €1.17 million. The nominal price of the shares was of €0.32 and the value attributed to the dividend in kind distributed by Go plc was of €0.3313.
Meanwhile, a single deal of 100 shares in Pefaco International plc shares was struck at €2.24.
On the other hand, a downward adjustment has been evident in GO plc over the past four weeks, reflecting the shares allotted to shareholders in MPC. The equity ended the week at €3 – a level last seen in May – down by 3.2 per cent on the week, after 24 deals of 115,211 shares.
In the property sector, Midi plc more than regained its previous week’s 8.6 per cent dip as the equity soared 14.1 per cent on the week, to close at €0.365, as 10 deals of 91,100 shares were struck. On the other hand, Malita Investments plc fell by 1.1 cent to close the week at €0.92, over five deals of 43,200 shares.
In the financial services sector, Fimbank plc shares recorded the second consecutive double-digit weekly gain as their market value continued to climb to $0.585 – up by 17 per cent. The equity was active in 35 deals of 526,389 shares.
Lombard Bank Malta plc shares partially recouped 3.2 per cent of its previous week’s 5.2 per cent decline, to close the week at €2.25, after six deals of 23,621 shares.
Meanwhile, the other banking equities BOV and HSBC both recorded a negative performance. BOV shares marked the fourth week of losses as its share price retreated by a further 0.4 per cent, to close at €2.27, after the second highest trading volume of €916,000. During the week, the bank announced that at the annual general meeting on December 17, inter alia, the bank’s audited financial statements as at September 30 will be presented for approval as well as the proposed gross final dividend payment of €0.085 per share, to be paid on December 18. The proposed bonus issue of one bonus share for every 12 held to be allotted to registered shareholders as at January 15, 2016, will also be presented for approval at the meeting.
HSBC’s share price eased 1.1 per cent lower to €1.79, as 43 deals of 133,468 shares were transacted. Last Thursday the bank announced that further to its interim directors’ statement the previous week, in which it had said that despite the challenging operating environment, the bank is focusing on improving its productivity and cost effectiveness. As part of this process, the bank has approved a plan to deliver sustainable cost savings mainly through an early retirement scheme for employees, the cost of which will depend on the number of applications received. The programme will reduce profitability in the current financial year but will support an increased level of profitability in future years.
Similarly, Mapfre Middlesea plc shares fell by 0.4 per cent to close the week at €2.28, as five deals of 2,576 shares were struck.
On a positive note, Simonds Farsons Cisk plc shares recorded their first gain in six weeks, as they appreciated 3.3 per cent to close at an all-time high of €6.20, as 29,355 shares changed hands in 10 deals.
In the IT services sector, investors remained bullish towards RS2 Software plc, as 39 deals of 118,380 shares pushed the share price 4.03 per cent higher to close at a record high of €3.10. 6PM Holdings plc shares stood unchanged at £0.68; they were active in six deals of 17,764 shares.
Elsewhere, Malta International Airport plc shares snapped their four-week winning streak with a one per cent decline, to close the week at €4.01, over a turnover worth €164,000. Meanwhile, International Hotel Investments plc shares gave back some of the previous week’s gains as the equity inched 0.4 per cent lower to €0.846 as six deals of 62,846 shares were negotiated.
Oil and gas logistics and services company Medserv plc traded lower for two weeks in a row, falling by a further 0.7 per cent to close at €2.125, on five deals of 5,222 shares.
The week’s other non-mover was Maltapost plc as its share price stood unchanged at its all-time high of €1.99, as 500 shares were traded.
In the corporate bond market, out of the 32 traded issues, seven rose and 11 fell in value as 14 stood unchanged. Total trading amounted to €767,000 – a slight decline from last week’s turnover of €799,000 as investors focused their attention on the 3.5 per cent BOV subordinated notes issue 2030. Recording the best performance for the week was the 5.8 per cent International Hotel Investments plc 2023 issue, as it appreciated by 1.4 per cent to €108.50, after a single deal of 2,500 nominal. Meanwhile the 5.5 per cent Mediterranean Investments Holding plc unsecured € 2020 issue closed 2.35 per cent lower to €104.
In the sovereign debt market, turnover rose to €10.3 million – of which 32.8 per cent was traded in the 2.3 per cent MGS 2029 (II) FI Oct 15 r issue, having closed the week one per cent higher at €107.27. The 5.2 per cent MGS 2031 (I) headed the list of gainers as it rose by 1.55 per cent to €144.50. A total of 24 issues were traded with 19 issues closing higher and five issues ending lower on the week, as long-dated stocks moved higher.
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.