The Malta Stock Exchange (MSE) Index closed higher over the four-day trading week, having notched an upward move of 2.21 per cent, registering its highest weekly gain in the last 34 weeks. These gains were in line with foreign equity markets which recovered from the previous week’s sharp falls following the shock announcements that the United Kingdom was to leave the EU.
Lifting the MSE to a two-month high at 4,578.915 points were the gains locked by the financial equities but primarily Bank of Valletta plc (BOV) shares.
Total trading value for the week fell from €2 million to €695k. Out of the 14 traded equities, 10 headed north, three declined and one stood unchanged.
BOV share recovered its previous 0.6 per cent decline, having appreciated by 2.2 per cent, to close the week at an eight-week high of €2.25, as 38 deals of 84,943 shares were traded over the highest turnover for the week, worth €189k. Meanwhile, the share price of HSBC Bank Malta plc advanced by 0.6 per cent, to the €1.61 price level. The latter was active across five trades of 16,317 shares.
It was another positive week for Lombard Bank Malta plc, having reached a three-month high of €2.20 last Thursday, to then close the week at €2.14 – up by 5.9 per cent, as 51,882 shares changed hands across 11 deals.
FIMBank plc shares notched its fourth weekly winning streak having gained a further 1.1 per cent, to close at $0.93, as four deals of 53,212 shares were transacted.
Additionally, three trades of 11,200 shares in Mapfre Middlesea plc shares pushed the share price 9.6 per cent higher to its eleven-week high of €2.40.
Meanwhile, in the property sector, Malta Properties Company plc shares surged by 4.5 per cent to close the week at €0.53, on five deals of 4,550 shares.
Conversely, the share price of Tigne Mall plc fell by 0.9 per cent to €1.05, on thin volume – active over one trade of a mere one hundred shares.
In the telecommunications sector, the share price of GO plc partially reversed the previous week’s advancement, as four transactions of 5,714 shares dropped its share price by 0.7 per cent, to close at €2.86.
Similarly, following double-digit gains during the previous week, Maltapost plc also ended this week marginally lower, registering a 0.5 per cent decline to close at €1.99, following two deals of just 2,894 shares.
Among the list of top performers this week, Malta International Airport plc shares recouped most of the previous week’s decline with a weekly advance of 3.7 per cent, to retouch the €4.25 price level, as 17,757 shares were dealt across 12 trades.
Moreover, International Hotel Investments plc shares extended its previous six per cent rally by 4.6 per cent, after adjusting for a 3 per cent bonus share issue, to close the week at its five-month high of €0.70, over a low volume of 7,401 shares across 11 deals.
In the IT services sector, RS2 Software plc shares ended the week 2.9 per cent higher after adjusting for the five for three share split to be allotted to shareholders on the shareholder register as at July 4, 2016. The equity closed the week at €2.16, its highest level in nine weeks, and was traded across 27 deals of 53,793 shares.
Elsewhere, the logistics and services company for oil and gas, Medserv plc shares edged 0.1 per cent higher to close at €1.792, as six deals of 11,285 shares were struck.
The only non-mover for the week was Simonds Farsons Cisk plc, having traded at €6.28 over two deals of 4,540 shares. During the week, the company announced that during the Annual General Meeting held on June 28, 2016 all of the ordinary resolutions were approved, including the payment of a final net dividend of €0.0733 per ordinary share.
On the corporate bond front, 21 issues were negotiated over a total turnover of €489k – reflecting a week-on-week increase of 0.7 per cent, of which, 12 headed north, seven fell out of favour, while the other two closed unchanged. The 3.5% Bank of Valletta plc € Notes 2030 S1 T1 issue gained most ground, advancing by one per cent to €99 over four deals of 70,000 nominal. On the other hand, the 6% AX Investments Plc € 2024 issue was the worst performing issue, down by 3.2 per cent over four transactions of 37,600 nominal.
During the week, MIDI plc announced that it has received regulatory approval for a new secured bond issue of €50 million, which will be issued at par and subject to a minimum subscription of €2,000. The new bond will mature in 2026 and holds a coupon of four per cent. The company will grant preference to its shareholders and to holders of the 7% MIDI plc 2016-2018 denominated in EUR and GBP, of up to €40 million.
Similarly, International Hotel Investments plc announced the issue of a new secured bond, worth €55 million, maturing in 2026 with a coupon of four per cent. The bond will be guaranteed by IHI Magyarország Zrt - the owner and operator of the Corinthia Hotel Budapest. The company is granting IHI shareholders who were on the register of shareholders on June 30, 2016, a preference of up to €30 million to subscribe to the new bonds, which will be issued at par.
Meanwhile, in the sovereign debt market, total turnover fell by 61.8 per cent to €9.3million, whereby strong gains were recorded across most stocks – particularly those having a longer maturity date. Heading the list of gainers was the 4.45% MGS 2032 (II) issue, up by 1.8 per cent, whereas the 2.5% MGS 2036 issue was the most traded stock, accounting for 48.3 per cent of total turnover. This reflects the trend across the broader European sovereign debt markets, as yields continued to fall sharply.
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, Hamrun or on Tel: 21224410 or e-mail jesmond.mizzi@jesmondmizzi.com.