The Malta Stock Exchange (MSE) index closed the week practically flat, as gains in shares of HSBC Bank Malta plc and Go plc were offset by losses in shares of Bank of Valletta plc (BOV), Fimbank plc, RS2 Software plc, and Malita Investments plc. The index ended the week 0.01 per cent higher at 4,425.529 points.

Total turnover shrank from €1.2 million to €693,000, as 14 equities were negotiated during the four-day week of which four gained ground, seven fell out of favour and three closed unchanged.

In the banking industry, HSBC shares headed the list of gainers, rising by 1.3 per cent to end the week at €1.62, thereby recouping some of the previous weeks’ declines. The appreciation in the banking equity’s share price came after 11 transactions of 9,978 shares. Its peer, BOV, eased 0.4 per cent to €2.252 after the week’s highest turnover, worth €160,300.

In the same line of business, Fimbank plc shares retreated by 0.6 per cent to $0.91, as 97,815 shares changed hands in six deals after failing to sustain an intra-week high of $0.92.

Meanwhile, Global Capital plc shares saw their price adjust lower by 1.8 per cent to €0.49, albeit on thin volume, worth €8,900.

Also trading in negative territory were the shares of Malta Properties Company plc, which fell 1.7 per cent from the previous week’s closing share price at €0.531. The equity was active in the second highest turnover for the week, worth €114,500.

Likewise, Malita Investments plc erased 1.1 per cent off its share price to close at €0.851, after being active in four deals of 26,000 shares.

In the IT services sector, RS2 shares lost further ground, slipping 0.9 per cent to €1.625 as 22 transactions of 51,380 shares were executed.

The other faller for the week was Plaza Centres plc, whose share price fell by 1.3 per cent over a volume of 32,000 shares.

On a more positive note, telecommunications company Go plc shares continued to trend higher, up by 0.6 per cent to €3.17 – a fresh high since last May – having witnessed a total of 13,995 shares being traded in eight deals.

Following seven weeks of inactivity, shares of Loqus Holdings plc were lifted by 0.7 per cent to €0.136 after a single deal of just 356 shares.

A marginal gain of 0.1 per cent was recorded in shares of Medserv plc, which were active in five transactions of 17,140 shares. The share price of the oil and gas logistics and services company ended the week at €1.551.

There was no movement in the closing price of International Hotel Investments plc which ended the week at €0.635 on low turnover. Similarly, the share price of Malta International Airport plc remained intact at €4.24 throughout the week as five deals of 5,680 shares were executed. A high trading volume of 71,000 shares left no impact on the closing price of Tigné Mall plc, which closed at €1.04.

In an announcement last Thursday, Mapfre Middlesea plc announced that the Malta Financial Services Authority had approved the intra-group merger between Mapfre Internacional SA, the major shareholder in Mapfre Middlesea plc and Mapfre America SA. The latter surviving entity will change its name to Mapfre International SA in the coming months. The equity was not active last week.

In the corporate bond market, activity dropped from €1.1 million to €660,000, spread across 24 issues, of which nine declined, seven gained ground and eight closed unchanged.

Last week, three companies announced the issuance of new bond issues. Mediterranean Maritime Hub Finance plc announced the issuance of €15m unsecured bonds maturing in 2026. The bonds will offer a coupon of 4.8 per cent per annun and will be issued at €100 per bond.

Dizz Finance plc also announced the issuance of €8 million unsecured bonds maturing in 2026. The bonds will offer a coupon of five per cent per annum and will be issued at €100 per bond.

GAP Group plc also announced the issuance of €40 million secured bonds maturing in 2023. The bonds will offer a coupon of 4.25 per cent per annum and will be issued at €100 per bond.

A positive trend was witnessed in the sovereign debt market as 17 stocks closed in positive territory while five shorter-dated issues lost ground. Turnover in this market also fell from €16 million to €11m. The three per cent MGS 2040 (I) was the best performer with a two per cent gain, having closed at €119.30. The most liquid issue was the 2.4 per cent MGS 2041 (I) r with a turnover worth €5.6 million.

Last Wednesday, the United States Federal Reserve left short-term interest rates unchanged but stated that the case for a rate increase has strengthened, and thus signalling that a move is likely before the end of the year. It was also reported that three members of the Federal Reserve were opposed to the decisions. The decision to wait was based on some members’ conviction that they should wait for more evidence of economic progress.

Unsecured bonds issued last week

€15m 4.8% – Mediterranean Maritime Hub Finance plc maturing in 2026

€8m 5% – Dizz Finance plc maturing in 2026

€40m 4.25% – GAP Group plc maturing in 2023

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.

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