The Malta Stock Exchange (MSE) index snapped out of its four-week negative streak with a weekly gain of 0.22 per cent, having closed at 4,442.789 points. This positive performance was buoyed by gains in five equities, primarily International Hotel Investments plc (IHI), which managed to offset declines in the share prices of Bank of Valletta plc (BOV) and Lombard Bank Malta plc.
Total trading value was down by 40 per cent week-on-week at €916,000, as activity was spread across 16 equities, of which gainers and non-movers tallied at five, while six declined on the week.
IHI shares recouped the previous week’s 2.9 per cent decline as its share price rallied by three per cent to reach €0.649 after six deals of 21,144 shares.
Last Tuesday, IHI announced that its subsidiary, CHI Ltd, had signed agreements with the UAE-based Meydan Group to provide technical services and to manage a luxury beachfront resort under construction in Dubai. Moreover, during its annual general meeting held last Thursday, all resolutions on the agenda were approved.
In the property sector, Malta Properties Company plc was the week’s only gainer, having surged by 5.3 per cent to €0.538, following eight deals of 48,000 shares. The equity traded at a low of €0.506 but recovered mid-week.
On the other hand, three deals of 11,200 shares in Midi plc lowered its share value by one per cent to €0.38.
Meanwhile, it was a mixed week for the financial equities. BOV shares declined by a further 0.9 per cent to close at a 16-week low of €2.20, after the week’s highest turnover worth €316,000. Its peer, HSBC Bank Malta plc, closed unchanged at €1.60, on a volume of 91,712 shares spread across 19 deals.
A single deal of a scant 601 shares in Lombard Bank Malta plc dragged its share price 4.8 per cent lower to €2.00 – a level last seen in July 2015.
Fimbank plc shares also ended the week in positive territory, having partially recovered from the previous week’s 3.2 per cent decline with a gain of 2.4 per cent during Friday’s trading session to close at $0.84, after 22 deals of 361,050 shares.
Last Thursday, the bank issued its interim directors’ statement, which highlighted that Fimbank registered a profit every month since the start of the year and thus has improved its performance when compared to the same period of 2015. Cost control measures have continued to be implemented and a significant and effective process of restructuring of its factoring network has been initiated. This process includes acquiring full or majority control of entities already part of its network and winding down companies that no longer form part of the group strategy. Significant improvements in the group’s governance procedures and risk management were reported.
Mapfre Middlesea plc shares closed half a per cent lower at €2.20, on thin volume of 616 shares.
This positive performance was buoyed by gains in five equities, primarily International Hotel Investments plc, which managed to offset declines in the share prices of Bank of Valletta plc and Lombard Bank Malta plc
Conversely, Global Capital plc shares rallied by 10.9 per cent to an 18-week high of €0.50, as seven deals of 20,400 shares were negotiated.
Elsewhere, Maltapost plc shares also continued on their downward trajectory, having closed at €1.80 – down by 0.1 per cent on the week. The equity was active in nine deals of 12,818 shares.
Among the list of fallers, the share price of Santumas Shareholdings plc recorded a weekly decline of 1.3 per cent, to close at €2.35, on thin trading of 120 shares, following five weeks of inactivity.
Meanwhile, in the IT services sector, the share price of RS2 Software plc reversed its course with its first weekly gain in four weeks, having climbed 0.7 per cent higher to €3.489, as five deals of 5,796 shares were executed.
There was no price movement in the shares of the telecommunications company GO plc, as its share price stabilised at €2.90, following 10 deals of 19,390 shares. Similarly, Malta International Airport plc shares closed the week unchanged at €4.30, as five deals of 6,935 shares were struck.
The week’s other non-movers were Medserv plc and Grand Harbour Marina plc, which traded at €1.75 and €0.90 respectively.
In the corporate bond market, total turnover rose from €1.02 million to €1.6m, across 36 issues, of which 14 gained ground, seven fell and 15 stood unchanged.
The 6.25 per cent Corinthia Finance plc € 2016-2019 issue recorded the week’s best performance with a gain of 3.5 per cent to close at €101.40. Meanwhile, the 5.8 per cent International Hotel Investments plc 2021 issue fell by 5.2 per cent to €103, as 5,000 nominal changed hands.
Last Wednesday, Global Capital plc announced that the issue of €10 million Global Capital plc five per cent unsecured bonds 2021 was oversubscribed.
In the sovereign debt market, total trading value more than doubled to €7.9 million. Out of the 22 traded issues, 16 advanced, five declined and one stood unchanged. All the long-dated issues gained over the week, while short-dated issues continued to decline.
The three per cent MGS 2040 (I) r issue edged 1.3 per cent higher and closed the week at €111.80, on 35 deals of 801,900 nominal.
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.