The Malta Stock Exchange (MSE) index extended its negative run to a fourth consecutive week, falling by a further 0.89 per cent to close at 4,433.079 points.
The fall in the share value of Bank of Valletta plc (BOV), HSBC Bank Malta plc and International Hotel Investments plc weighed down on the index, given the equities’ relatively larger weighting. Only GO plc, Mapfre Middlesea plc and Malta Properties plc shares managed to notch a weekly gain, which, however, failed to lift the index from closing in the red in the first week of June.
Total trading value rose by 42 per cent to €1.54 million, spread across 17 equities, of which three rose, 10 fell out of favour and four stood unchanged.
Last Wednesday, GO announced that Tunisie Telecom has clarified its intention to maintain GO’s status as a public listed company with shares traded on the MSE, as far as it remains in compliance with the listing rules. Therefore, it will not be actively seeking to reach the thresholds stipulated for a mandatory squeeze out, nor the related implementation of delisting mechanics.
Tunisie Telecom chairman and CEO Nizar Bouguila expressed his enthusiasm to support GO’s growth opportunities both domestically and as part of the wider group, and the importance of maintaining a strong local shareholder base to benefit from the strong public and customer support.
The telecommunications company marginally rebounded from its previous 17.1 per cent drop in value, as 20 deals of 37,115 shares lifted its share price half a per cent higher to €2.90.
It was a negative week for the banking equities. BOV shares fell by 0.9 per cent to €2.22 after 24 deals of 37,522 shares.
Its peer, HSBC, marginally retreated by 0.1 per cent to close the week at €1.60, nearing its €1.59 support level evident from mid-February onwards. A total of 51,515 shares changed hands in 17 deals.
During the week, HSBC announced that the board meeting scheduled for August 5 has been rescheduled for August 3 to consider and approve the group’s and the bank’s interim accounts for the half-year ending June 30, and if thought appropriate, to declare an interim dividend.
Meanwhile, 18 deals of 90,205 shares in Fimbank plc wiped out 3.2 per cent from its share value, which closed the week at $0.82.
Elsewhere, the share price of International Hotel Investments plc (IHI) closed down by 2.9 per cent to €0.63, as 38,316 shares changed hands in 10 deals. IHI has been trading in a tight range of €0.62 to €0.65 for the past nine weeks.
Among the list of fallers, Maltapost plc shares dropped by 6.2 per cent to €1.801, a level last seen on December 23, 2015 – after a single deal of 2,000 shares.
Simonds Farsons Cisk plc shares reached a fresh all-time high of €6.50 last Tuesday but closed the week at €6.30 – falling by 1.6 per cent from the previous week’s closing price; it was active in seven deals of 53,854 shares.
Oil and gas logistics and services company Medserv plc pared its previous week 0.6 per cent gain to return to €1.75, following 12 deals of 35,660 shares.
In the IT services sector, RS2 Software plc shares fell for the fourth consecutive week, retreated by a further one per cent to €3.465, as 17 deals of 60,168 shares were executed. Meanwhile, the value of 6pm Holdings plc shares remained unchanged at £0.95 on thin trading of just 731 shares.
In the property sector, Midi plc shares fell by one per cent to €0.384, as two deals of 16,000 shares were struck.
Similarly, the share price of Plaza Centres plc slipped by 0.9 per cent to €1.07, after four deals of 37,226 shares. The company announced that in last Monday’s annual general meeting (AGM), the shareholders, among other matters, approved the payment of a final ordinary net dividend of €0.0286 per share.
On a positive note, Malta Properties Company plc shares locked in a weekly gain of 0.2 per cent to close at €0.511– it was active on 15 deals of 61,111 shares.
Malita Investments plc shares stood unchanged at €0.90, albeit on high trading volume of 112,210 shares.
Last Friday, Tigné Mall plc announced that its AGM will be held on June 24 to approve the audited financial statements for the year ended December 31, 2015, and to declare a final net dividend of €0.0125 per €0.50 share.
No Tigné Mall plc shares were traded last week.
Elsewhere, Mapfre Middlesea plc shares ended the week half a per cent higher at €2.21, after a thin volume of 2,207 shares.
Meanwhile, the week’s other non-movers were Malta International Airport plc (MIA) and Loqus Holdings plc shares, which closed unchanged at €4.30 and €0.131 respectively.
After close of trading last Friday, MIA published its traffic results for May. The company reported a 7.8 per cent growth in passengers compared to the same period in 2015, mainly due to higher seat capacity from new routes and additional frequencies in the popular destinations. The UK, followed by Italy, Germany, France and Poland remained the top five traffic drivers.
In the corporate bond market, total turnover was down 10.7 per cent to €1.02 million. Of the 28 active issues, seven rose, 10 fell and 11 stood unchanged. The six per cent Island Hotels Group Holdings plc € 2024 issue recorded the best performance with a weekly gain of 3.6 per cent, having closed at €115, while the 6.25 per cent Corinthia Finance plc € 2016-2019 dropped 3.4 per cent lower at €98.01, on two deals of 5,200 nominal.
Last Monday Global Capital plc announced the extension of the offer period of the €10 million Global Capital plc five per cent unsecured bonds 2021 issue to Wednesday.
In the sovereign debt market, total turnover fell from €8.7 million to €3.8 million last week. Trading activity was spread across 22 issues, of which only four gained ground while 18 closed in the red. The highest liquidity was in the 4.1 per cent MGS 2034 (I) issue with a turnover worth €1.6 million, having closed the week 0.2 per cent lower at €132.03.
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.