During the four-day trading week, the Malta Stock Exchange (MSE) index fell by 0.81 per cent to close at 4,426.375 points.
Despite the gains registered in the share price of Malta International Airport plc (MIA), GO plc and Medserv plc, the declines in RS2 Software plc, Fimbank plc and property equities weighed down on the MSE’s performance, thus dragging the index back to negative territory by 0.1 per cent year-to-date.
Total trading value fell by 0.1 per cent to €1.2 million, as activity was spread across 11 equities, of which only three advanced, five closed in the red and three stood unchanged.
Telecommunications company GO continued to rebound from the drop in its share value following the launch of the voluntary bid by Tunisie Telecom, marking a surge in share value of four per cent year-to-date. The equity recorded a weekly gain of 1.3 per cent to close at €3.14, following three deals of 10,000 shares.
Elsewhere, MIA shares ended the week 0.2 per cent higher at €4.25, as 10 deals of 23,654 shares were struck. Last Tuesday, the company published its traffic results for the month of August.
MIA reported the highest monthly passenger movements at the airport – up by 2.3 per cent over the same month last year, primarily due to an increase in airline seat capacity. The top drivers of passenger traffic were the UK and Italy, which were also listed among the airport’s top five markets together with Germany, France and Spain. However, the most significant growth year-on-year was reported for Poland and Spain. Meanwhile, cargo and mail registered a decline of 3.20 per cent from the corresponding period of last year.
Among the list of gainers, the oil and gas logistics and services company Medserv plc surged by 4.7 per cent, with buying interest primarily witnessed during last Friday’s trading session. The equity snapped its five-week losing streak, having recovered to €1.57, as 66,076 shares changed hands in 17 deals.
Meanwhile, in the banking industry, both BOV and HSBC shares closed the week unchanged. BOV shares oscillated between a weekly high of €2.265 and a low €2.25, closing at the latter, after the second highest turnover worth €245,000. Meanwhile, HSBC managed to recover from its weekly low of €1.57 to close at €1.60, after 16 deals of 44,172 shares.
RS2 Software plc was the main laggard, as its share price sank by 7.9 per cent to €1.64, having touched an 18-month low of €1.50 intra-week
On the other hand, Fimbank plc shares dropped by 6.2 per cent last Wednesday to $0.915 as three deals of 63,600 shares were executed. However, RS2 Software plc was the main laggard, as its share price sank by 7.9 per cent to €1.64, having touched an 18-month low of €1.50 intra-week, after the highest turnover of €523,000.
It was also a negative week for the traded property equities, as Malta Properties Company plc shares fell by a further 3.7 per cent to €0.52, nearing its €0.505 support level for the past three months. The equity was active in nine deals of 147,680 shares.
A single deal of 1,250 shares in Plaza Centres plc lowered its share value by 1.2 per cent to close the week at €1.135, while Midi plc shares eased by 0.3 per cent to €0.349 on a volume of 4,250 shares.
There was no movement in the share price of Simonds Farsons Cisk plc, which remained faithful to their all-time high of €6.50. The equity was negotiated in a single deal of 1,000 shares.
During the week, Global Capital plc announced that following the rights issue of 16,792,452 new ordinary shares, each having a nominal value of €0.291172, the following shareholders have exceed the five per cent threshold: Investar plc (52.60 per cent), BAI Co. (Mtius) Ltd (21.33 per cent), Christopher J. Pace (5.04 per cent), while Provident Real Estate Fund Ltd (2.50 per cent) has fallen below the threshold.
In the corporate bond market, total turnover stood at €1.2 million – down marginally from the previous week. Of the 27 traded issues, nine gained ground, 10 fell out of favour and eight stood unchanged. The six per cent Pendergardens Developments plc secured € 2022 series II issue climbed 0.9 per cent to €114, while 5.3 per cent Mariner Finance plc unsecured € 2024 issue dropped by 5.6 per cent to €103.75, on a mere 8,000 nominal.
In the sovereign debt market, 13 out of the 23 traded issues rose in value while 10 declined. Total turnover amounted to €10.3 million, half of which was traded in the 2.4 per cent MGS 2041 (I) r issue, which inched one per cent higher to €107.50.
Last Thursday, European Central Bank president Mario Draghi announced that interest rates were kept unchanged and that the monthly asset-purchase programme will continue as planned until March 2017, since “for the time being, the changes are not so substantial as to warrant a decision to act”.
Furthermore, the ECB reassured the market by reiterating that it would continue quantitative easing until “at least” next March. However, the markets were not impressed, as following the announcement, global indices fell marginally as investors cashed in recent gains.
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.