Despite high volatility in global equity markets the Malta Stock Exchange index closed the week 0.78 per cent higher at 4,521.012 points, a level last reached in April 2008. European equity markets also clos­ed higher after trading at a 15- month low last Wednesday.

The MSE’s positive performance was attributed to gains in eight equities, with larger capitalised equities spearheading the upward trend. Rises in HSBC Bank Malta plc and Malta International Airport plc shares more than offset falls in Midi plc, RS2 Software and Lombard Bank Malta plc shares.

Total trading value stood at €2.3 million – a weekly rise of 23.5 per cent, spread across 15 equities, of which eight increased in value, three fell, and four remained unchanged.

HSBC Bank Malta plc took the lead with a gain of 3.7 per cent as 19 deals of 38,522 shares were struck, pushing the share price to €1.795, ahead of the bank’s financial year-end results due in a month’s time.

Bank of Valletta plc’s share price rose 0.5 per cent to close the week at €2.24, after €736,000 worth of trading – the week’s second highest turnover in a single equity.

Lombard Bank Malta plc shares failed to keep up with the positive performance of the two major banks, falling by two per cent in value during the week to close at €2.435. The equity was traded in three deals of 15,180 shares.

Fimbank plc shares remained unchanged at $0.63, as 98,754 shares changed hands in nine deals.

Mapfre Middlesea plc shares edged 0.9 per cent higher to €2.35 – a level last seen in March 2009, after three deals of 3,180 shares.

On the back of positive yearly results, Malta International Airport plc (MIA) shares rose 1.2 per cent to a record high of €4.35, as 34 deals of 45,514 shares were struck. Last week, MIA announced a 7.7 per cent passenger growth and a 6.3 per cent rise in aircraft movements. The top markets were the UK and Germany.

Traffic at the airport rose in the winter months, with a nine per cent rise in December compared to last year. Seat load factor also rose and cargo and mail increased by 5.6 per cent from the previous year. New routes are expected to start operating in the coming months, including three new airlines – Volotea, Iberia Express and Czech Airlines. In 2016 MIA is expecting an increase in traffic of at least 2.4 per cent from 2015.

In the property sector, Malta Properties Company plc shares added a further 1.8 per cent to its previous 3.6 per cent increase to close higher for the fourth consecutive week at €0.58. The equity was transacted in 31 deals of 181,860 shares. Tigné Mall plc’s share price also rose by 1.1 per cent to the €0.96 after three deals of 20,000 shares.

Two deals of 20,500 Midi plc shares dragged its share price 3.6 per cent lower to €0.35. Malita Investments plc shares stood unchanged at €0.95 as 58,350 shares changed hands in seven deals.

Maltapost plc continued recovering, adding a further 1.1 per cent to its previous 2.1 per cent increase, to close the week at €1.92 after 13,210 shares were traded in seven deals.

GO plc extended its upward trajectory to a sixth week as the equity locked a weekly increase of 1.6 per cent, closing Friday’s session at a 10-week high of €3.15, after 11 deals of Last Wednesday the company board agreed to proceed with the option to convert the €12 million loan provided to Cablenet into equity, and to exercise the option in its share purchase agreement to acquire more shares. This increases GO’s stake in Cablenet from 25 to 51 per cent, thus acquiring majority control.

On a negative note, in the IT Services sector, RS2 Software plc shares gave back 1.2 per cent of its previous gains, as its share price retracted to €3.29 – €0.04 cents shy from its all-time-high of €3.33. The equity recorded the week’s highest turnover worth €800,000.

The share price of Medserv plc reached a weekly high of €1.78 but then fell to a weekly low of €1.68 in Friday’s trading session. The equity closed the week unchanged at €1.68 after seven deals of 24,250 shares.

Last week, the company announced that following the rights issue period, 2,022,920 new ordinary shares of a nominal value of €0.10c each will be allotted and listed on the MSE official list by February 5, with trading due to start on February 8.

Moreover, a lapsed rights offer period ending on Wednesday was announced, with 3,517,904 rights available to intermediaries for subscription at €1.50 per share. Acceptance and allocation will be announced by Friday.

There was no change in the share price of Simonds Farsons Cisk plc shares, which traded at €6 after a thin trading volume of 4,249 shares.

In the corporate bond market, total turnover rose from €842,000 to €1.06 million – up by 26.2 per cent on the week, spread across 31 issues, of which six rose, eight closed lower and 17 were unchanged. The 6.8 per cent Premier Capital plc € bond 2017-2020 issue rose 0.5 per cent to €104.50 and the 3.5 per cent Bank of Valletta plc € Notes 2030 S2 T1 issue fell below par, closing the week 1.9 per cent lower at €99.99 after three deals of 40,000 nominal.

In the sovereign debt market, of the 23 active issues, 16 rose in value, six retracted lower and one stood unchanged. In line with the broader European sovereign debt market, most of the long-dated stocks rose and short-dated issues closed the week lower as maturity nears.

The 4.45 per cent MGS 2032 (II) recorded the best performance, having edged 0.5 per cent higher to €132.86, after five deals of 50,000 nominal. Meanwhile the 4.1 per cent MGS 2034 (I) issue was the most liquid issue, having traded in a turnover worth €878,000, representing 26 per cent of the total trading value of €3.36 million.

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.

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