The Malta Stock Exchange index strengthened last week’s gain by a further 0.4 per cent as positive sentiment prevailed, with 10 equities gaining ground, five declining while two closed flat.
Turnover in the equity market declined from €1.5 million to €1.2 million over the week.
The equities of the two leading banks both closed the week in positive territory. Trading in Bank of Valletta plc shares ranged between a low of €2.26 and a high of €2.30, to then end the week 1.3 per cent higher at €2.29, over the highest turnover this week of €248,000. HSBC Bank Malta plc shares closed three per cent higher at their weekly high of €1.67 as 105,470 shares changed hands.
On the other hand, a 1.6 per cent decline was registered in the share price of FIMBank plc as six deals of 71,000 shares were executed, closing at $0.915. No movement was noted in the share price of Lombard Bank Malta plc as one trade of 2,155 shares was dealt at €2.10.
Elsewhere, GO plc shares recorded their 10th consecutive weekly gain having closed one per cent higher at their weekly high of €3.25 over eight deals of 23,018 shares. In an announcement on Thursday, the company referred to an announcement issued by Forthnet SA, on September 15, relating to the issue of a convertible bond loan with cash payment that entailed pre-emption rights for its existing shareholders. The board of directors resolved not to exercise GO’s pre-emption rights and not to participate in the issue of the convertible bond as announced by Forthnet SA.
This week’s best performing equity was Malta Properties Company plc having soared by 5.4 per cent to €0.59 as 109,399 shares changed hands. In an announcement on Monday, the company referred to a previous announcement regarding the potential mixed-use development incorporating the use of the Company’s St George’s Exchange in St Julian’s. The company announced that it entered into a tripartite memorandum of understanding regarding a proposed development at this site which shall consist of a mixed-use development envisaged to incorporate residential and commercial areas, including a shopping mall of at least 10,000m², as well as a car park. It is projected that the Project will be completed by 2023.
Meanwhile, eight deals of 138,086 shares pushed the share price of Plaza Centres plc 3.6 per cent higher to €1.14 while Tigne Mall plc and Malita Investments plc recorded similar gains of 1.4 and 1.2 per cent respectively.
Conversely, the share price of MIDI plc stumbled by seven per cent to €0.325 over nine deals of 63,685 shares.
Malta International Airport plc shares managed a modest 0.2 per cent gain to close at €4.27. After close of trading yesterday, the company announced its traffic results for the month of September reporting movements exceeding half a million passengers for the third consecutive month resulting in a 5.8 per cent gain over the same month in 2015.
Nine deals of 31,935 shares in Medserv plc led this equity back in positive territory by 1.3 per cent to close at €1.57.
On a negative note, RS2 Software plc shares dropped by 4.3 per cent to €1.57 on a turnover worth €107k while a single deal of only 200 shares in Loqus Holdings plc led to a 2.2 per cent gain.
The share price of Simonds Farsons Cisk plc eased 0.7 per cent to €7 after turning ex-dividend on Tuesday while Maltapost plc shares registered a 1.6 per cent decline and closed at €1.85.
No movement was noted in the share price of International Hotel Investments plc as 22,621 shares were dealt.
In the corporate bond market trading was spread across 21 issues reaching a turnover of €1.28 million compared to €1.05 million last week – five issues gained ground, six closed in the red and ten closed unchanged. Declines were noted in the 6% Mediterranean Bank plc Subordinated Unsecured € 2019-2024 and the 4.5% Hili Properties plc Unsecured € 2025 having closed at €103.01 and €101 respectively.
In an announcement yesterday, Premier Capital plc announced that it has applied for the admissibility to listing of €65 million Unsecured Bonds maturing in 2026 and meanwhile has resolved to redeem the 6.8% Unsecured Bonds 2017 – 2020 (exchangeable bond) on March 16, 2017. Preference to subscribe to the new bond will be granted to holders of the exchangeable bond and holders of the 4.5% Hili Properties plc Unsecured Bonds 2025 or the 5.1% PTL Holdings plc Unsecured Bonds 2024 as at October 20, 2016.
A negative trend was witnessed in the sovereign debt market as all 27 stocks active this week closed in the red. Total turnover declined from €11.5 million to €10.2 million of which €3.8 million was traded in the 2.4% MGS 2041 (I) r which also suffered the worst drop of 1.7 per cent to close at €106.75.
Yesterday, the Accountant General announced the issuance of two Malta Government Stocks, namely the 1.5% MGS 2022 (IV) Fungibility Issue and the 2.1% MGS 2039 (I), with prices to be announced on Thursday, October 13, 2016. The two stocks shall in aggregate be of €100 million subject to an over-allotment option of €60 million in the event of over-subscription.
This article which was compiled by Jesmond Mizzi Financial Advisors Limited, 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 is 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 Financial Advisors Limited at 67, Level 3, South Street, Valletta, or on Tel: 2122 4410, or e-mail info@jesmondmizzi.com.