The Malta Stock Exchange (MSE) index recorded its first weekly decline for the year to close 1.08 per cent lower, at 4,472.26 points. Nevertheless, on a year-to-date basis the index still managed to end in positive territory – up by 0.9 per cent – and significantly outperforming the broader global equity markets.
Losses suffered by four equities, namely Bank of Valletta plc, HSBC Bank Malta plc, Malta International Airport plc and International Hotel Investments plc, weighed heavily on the MSE given their larger weighting on the index by market capitalisation.
Meanwhile, GO plc and Global Capital plc shares were the week’s only gainers. Total trading value fell by almost half, from €2.3 million to €1.2 million, spread across 18 equities.
HSBC Bank Malta plc shares almost completely erased the previous week’s 3.7 per cent gain with a drop of 3.6 per cent, as 29 deals of 76,274 shares lowered the equity’s value to €1.731.
Bank of Valletta plc (BOV) retracted by 0.5 per cent to €2.23, after registering the highest value of turnover worth €547,000. Over the whole of January, BOV shares registered a monthly gain of 2.8 per cent, outperforming the other banking equities.
Lombard Bank Malta plc’s share price also closed the week 1.4 per cent lower at €2.40, and fell 3.4 per cent during the month. Last week there was a single deal of a scant 1,040 shares in the bank.
Mapfre Middlesea plc’s share price closed four per cent lower at €2.255 after six deals of 10,316 shares, while a single deal of 2,000 shares in Fimbank plc left its share price unchanged at $0.63.
International Hotel Investments plc shares continued their downward trajectory, as their value sank to a weekly low of €0.70, but then slightly recovered by Friday’s trading session, closing the week at €0.735 – down by 0.7 per cent on the week, after 10 transactions of 61,200 shares. The equity fell by two per cent in January and has failed to record a weekly gain since November 2015.
Malta International Airport plc (MIA)’s share price closed the trading week at €4.33 after failing to maintain an intra-week high of €4.40, as 25 deals of 26,024 shares were struck. Despite closing the week 0.5 per cent lower, MIA shares locked in a gain of 7.4 per cent last month – the best performer so far this year.
Malta Properties Company plc shares snapped a four-week winning streak by plunging 6.9 per cent last week and closing Friday’s trading session at €0.54 as 62,980 shares changed hands in 16 deals. Nevertheless the equity recorded a 6.9 per cent gain over the past four weeks.
Tigné Malta plc, Malita Investments plc, Midi plc and Plaza Centres plc shares traded unchanged at €0.96, €0.95, €0.35 and €1 respectively.
Medserv plc shares closed the week 2.1 per cent lower at a five-month low of €1.645, following five deals of 10,218 shares. Over the month, its share price fell six per cent.
Further to the previous week’s 1.2 per cent decline, RS2 Software plc’s share price fell by a further 0.5 per cent last week to close at €3.275 as seven deals of 34,080 shares were struck. Despite retreating from its all-time high of €3.33 the equity recorded a 3.6 per cent gain during the month.
Meanwhile, 6pm Holdings plc share price remained unchanged at £0.70 after two deals of a mere 2,000 shares.
On a positive note, GO plc shares notched their seventh consecutive weekly gain, after appreciating 1.3 per cent last week and record a monthly increase of 5.6 per cent. The equity closed the week at €3.19 – a level last reached in November 2015, and was active in 19 deals of 40,504 shares.
Last Thursday, the company announced that its fully-owned subsidiary, GO Data Centre Services Ltd, had completed the acquisition of 51 per cent of the issued share capital of Kinetix IT Solutions Ltd.
Global Capital plc’s share price recovered by 11.1 per cent to €0.50, as two deals of 2,000 shares were executed. Notwithstanding this gain, the equity’s share price has fallen by 33.3 per cent so far this year.
Meanwhile, there was no change in Maltapost plc’s share price after thin volume trading of 8,000 shares in two deals. The equity notched a six per cent return on the month.
During the week, Loqus Holdings plc announced that at its annual general meeting held last Thursday, the audited financial statements for the period ended June 30, 2015, the directors’ report and the auditors’ report were approved.
In the corporate bond market, total turnover amounted to €789,000 – a week-on-week fall of 25.8 per cent. Activity was spread across 23 issues, of which seven advanced, five fell in value and 11 remained unchanged.
The 4.25 per cent Bank of Valletta plc euro notes 2019 series 2 tranche 1 issue recorded the week’s best performance after trading 5.8 per cent higher to close at €110. Meanwhile the five per cent Hal Mann Vella Group plc secured bonds euro 2024 issue closed at €105, as two deals of 10,000 nominal were transacted.
The 3.5 per cent Bank of Valletta plc euro notes 2030 S2 T1 continued to trade below par for the second consecutive week, falling by a mere 0.1 per cent to close at €99.89, on a turnover worth €79,000.
In the sovereign debt market, 22 issues were active, of which 18 edged higher and four declined. While long-dated issues traded higher, short-dated stocks declined as maturity neared.
The three per cent MGS 2040 (I) r issue closed the week up by 1.9 per cent at €110.38 after 70 deals of 947,800 nominal, while the 6.65 per cent MGS 2016 issue inched 0.3 per cent lower to €101.06.
Total trading value amounted to €7.07 million, of which 40 per cent was traded in the 2.3 per cent MGS 2029 (II) issue, which closed the week 1.3 per cent higher at €107.53.
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.