As investors awaited the prices of the new government bond issues, turnover in the secondary market soared to €19 million.
Last Thursday, the Accountant General announced the prices for the new Malta Government Stocks issues.
The price for the 1.5 per cent MGS 2022 (IV) Fungibility Issue was set at €107.25, with a yield to maturity of 0.266 per cent, while the 2.4 per cent MGS 2041 (I) issue was priced at €101.75, thus yielding 2.307 per cent.
Applications from the public will close on Wednesday or earlier at the discretion of the Accountant General.
Meanwhile, the Malta Stock Exchange (MSE) index managed to halt three consecutive weeks of decline as it registered a 0.1 per cent gain over the week as the share value of Bank of Valletta plc (BOV) and HSBC Bank Malta plc traded higher in Friday’s trading session. The MSE’s performance was buoyed further by gains by Mapfre Middlesea plc and Midi plc shares.
Meanwhile, the fall in value of Malta International Airport plc (MIA) and GO plc shares weighed down the MSE, given their large market capitalisation.
Total trading value fell from €788,000 to €594,000, as activity was spread across 13 equities, of which four ticked higher, seven closed in the red and two remained unchanged.
In the banking sector, HSBC shares recorded the best performance as it fully recovered the 1.3 per cent decline registered in the previous week as it gained 1.9 per cent last Friday, ahead of Wednesday’s announcement of the bank’s financial interim results. The equity closed at €1.60, as 92,645 shares changed hands in 28 deals.
BOV appreciated by half a per cent to €2.22, having traded on the highest turnover, worth €206,000.
Moreover, Fimbank plc shares snapped their seven-week winning streak with a decline of 0.4 per cent on the week, having closed at $1.015 – $0.005 shy of its seven-year high of $1.02 – following five deals of 131,000 shares.
The share price of Lombard Bank Malta plc also declined, having eased by 0.04 per cent to €2.249, on two deals of 3,300 shares.
On the other hand, among the list of gainers, Mapfre Middlesea plc shares advanced by 1.6 per cent to close at €2.042, on a thin volume of 800 shares spread across two deals.
In the property sector, the share value of Midi plc gained by 0.5 per cent to €0.379, as four deals of 25,800 nominal were transacted.
In the same line of business, Malta Properties Company plc (MPC) and Malita Investments plc shares closed the week unchanged at €0.507 and €0.89 respectively. While MPC recorded a turnover of eight deals of 37,444 shares, Malita Investments plc was active in two deals of 5,600 shares.
On a negative note, telecommunications company GO plc fell by 0.7 per cent to close the trading week at €2.80, as seven deals of 18,199 shares were negotiated.
Last Thursday, GO published a press release in which Tunisie Telecom announced that it had received acceptances in respect of over 66 million shares – amounting to 65.4 per cent of the total issued share capital of GO.
GO shareholders who have accepted the voluntary bid are entitled to receive a cash consideration of €2.87 per share once the transaction is completed.
Moreover, last Friday, GO announced that Forgendo Ltd, the 50:50 joint venture company between GO and Emirates International Telecommunications (Malta) Ltd (EITML), which holds shares in Greek telecommunications operator Forthnet SA, has divided its entire shareholding between GO and EITML for nil consideration
These share transfers include the voluntary liquidation of Forgendo, and thus ensure that GO will be able to manage and take all decisions with regard to its investment in Forthnet entirely independently of EITML.
Elsewhere, the share value of MIA shares fell to €4.20 – down by 1.2 cent on the week, on two deals of 2,495 shares, while a single deal of 1,100 shares in Maltapost plc lowered its share price by 1.1 per cent to €1.88.
In the IT services sector, the value of RS2 Software plc shares eased by half a per cent to €2, on six deals of 7,949 shares.
Additionally, following two weeks of inactivity, Global Capital plc shares plunged by 29.9 per cent to a seven-month low of €0.35, on a scant volume of 240 shares.
During the week, Medserv plc announced that it had undertaken a management restructuring exercise designed to ensure both the efficient management of the growing business, as well as to address succession planning.
In the corporate bond market, total turnover more than doubled to €945,000, spread across 30 issues, of which six gained ground, 13 fell out of favour and 11 stood unchanged.
The 4.25 per cent Corinthia Finance plc Unsecured € 2026 issue locked in a return of 1.7 per cent, at €104.50, while the six per cent Pendergardens Developments plc Secured € 2022 Series II issue inched 3.9 per cent lower to €110.50, as two deals of 11,000 nominal were transacted.
During the week, both Midi plc and International Hotel Investments plc announced their basis of acceptance for their new secured bonds.
In the sovereign debt market, six out of the 24 active issues advanced and 18 declined.
Total trading value surged to €19 million, of which more than half was traded in the long-dated issues: 2.5 per cent MGS 2036 and the three per cent MGS 2040, having closed the week at €105.26 and €112.96 respectively.
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.