The Malta Stock Exchange (MSE) index closed the week 0.2 per cent lower at 4,568.285 points, following a disappointing week in the larger capitalised equities, namely HSBC Bank Malta plc, Bank of Valletta plc (BOV) and International Hotel Investments plc (IHI). On the other hand, positive returns were recorded in the share price of Lombard Bank Malta plc, Fimbank plc and Medserv plc – the only gainers last week.
Total trading value for the week rose from €695,000 to €1.4 million as activity was spread across 13 equities, of which only three advanced, six declined and four remained unchanged.
In the banking sector, HSBC shares retreated by 1.9 per cent to a 15-week low of €1.58, as 23 deals of 104,301 shares were negotiated.
Meanwhile, the share price of BOV gave up 0.9 per cent of its previous gains, closing the week at €2.229, after 47,266 shares were traded in 22 deals.
Conversely, the share price of Lombard Bank Malta plc notched its third weekly gain, surging by 2.8 per cent to €2.20, after reaching a 22-week high of €2.28 intra-week. The equity was active in the highest turnover for the week of €420,000.
Moreover, 11 deals of 175,360 shares in Fimbank plc extended its upward momentum to a fifth week, as its share price rallied by 4.3 per cent to $0.97, a level last seen in March 2010.
Among the list of gainers, Medserv plc, the logistics and services company for oil and gas, advanced by 1.6 per cent to €1.82 as 12 transactions of 37,524 shares were struck.
Elsewhere, the share price of IHI fell by 0.1 per cent to €0.699, on a low volume of 2,100 shares traded in two deals.
Applications will be accepted throughout next week for the new secured bond being offered by IHI of €55 million maturing in 2026 with a coupon of four per cent. The company is granting IHI shareholders who were on the company’s register at June 30, preference of up to €30 million to subscribe to the new bond, which will be issued at par.
Telecommunications company GO plc registered a further decline of 0.4 per cent to close the week at €2.85 after seven deals of 8,600 shares.
In the property sector, Malta Properties Company plc shares wiped out most of their previous gains with a drop of 4.3 per cent in its share value to €0.507. The equity was active in 11 deals of 49,215 shares.
Fimbank plc extended its upward momentum to a fifth week, as its share price rallied by 4.3 per cent to $0.97, a level last seen in March 2010
The other traded property equities, namely Malita Investments plc and Tigné Mall plc shares stood unchanged at €0.89 and €1.05 respectively.
Elsewhere, RS2 Software plc shares fell by 0.6 per cent to €2.148 on a significant volume of 146,751 shares spread across 55 deals.
The other non-movers for the week were Simonds Farsons Cisk plc and Malta International Airport plc, which traded at €6.28 and €4.25 respectively.
Last Friday, Plaza Centres plc issued its half-yearly report for the period ended June 30. The company reported an increase in profits before tax from €777,000 to €819,000, when compared to the first six months of 2015. Revenue for the period amounted to €1.3 million – up by 3.3 per cent from the comparable period of 2015.
The company reports that occupancy level also improved and stood at 99 per cent at end of June 2016. Similar occupancy levels are expected for the second half of the year. The board of directors did not propose the payment of an interim dividend.
In the corporate bond market, total turnover amounted to €1.6 million – more than a threefold increase from the previous week, spread across 35 issues, of which 11 gained ground, 18 closed the week lower and six stood unchanged.
The six per cent Island Hotels Group Holdings plc € 2024 recorded the best performance for the week, gaining 3.2 per cent to €110, on four deals of 37,000 nominal, while the 4.5 per cent Izola Bank plc € Unsecured 2025 issue fell by 3.9 per cent to €105.26.
Despite the increase in volume, investors also focused their attention on the new secured bond of €50 million that is being offered by Midi plc. The new bond will mature in 2026 and holds a coupon of four per cent. The company will grant preference of up to €2 million to its shareholders and €40,832,900 to holders of the seven per cent Midi plc 2016-2018 denominated in euro and sterling. Applications for the new bond will be accepted throughout next week.
In the sovereign debt market, of the 24 traded issues, one stood unchanged, nine rose in value while 14 closed the week in the red, the majority of which were long-dated issues.
The 2.5 per cent MGS 2036 (I) issue fell by 0.4 per cent to €106.54, on the highest turnover for the week, worth €2.5 million. The latter represented 34 per cent of the total trading value of €7.3 million. Meanwhile, the 5.1 per cent MGS 2029 (I) issue inched 0.6 per cent higher to €145.10 as 13,000 nominal was negotiated across two deals.
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.