Last Friday, the Accountant General announced the issuance of two Malta Government Stocks, namely the 1.5 per cent MGS 2022 (IV) Fungibility Issue and the 2.1 per cent MGS 2039 (I) with prices yet to be announced. The two stocks will in aggregate be of €100 million, subject to an over-allotment option of €60m in the event of over-subscription.
Meanwhile, the Malta Stock Exchange (MSE) index ended its first trading week of October in positive territory, extending its series of weekly gains to three. The MSE index’s advancement of 0.42 per cent reflected significant gains in shares of HSBC Bank Malta plc, Bank of Valletta plc (BOV), GO plc and Malta Properties Company plc (MPC) – outweighing substantial declines in shares of RS2 Software plc, Midi plc, Fimbank plc and Maltapost plc. The index thus ended the week at a 12-week high of 4,485.383 points.
Total turnover fell to €1.2 million, as 17 equities were negotiated – of which five fell out of favour, twice as much gained ground, while two closed unchanged.
In the banking industry, HSBC shares locked in a 3.1 per cent gain to close at a weekly high of €1.67, after a total turnover of €173,000. This lifted the banking equity at a six-month high closing price after its strongest weekly gain in 26 weeks.
Its peer, BOV, continued to trend higher, touching a 19-month high of €2.30 last Thursday, to then close marginally lower at €2.29; it was active in the highest turnover of the week, worth €247,900.
In the same line of business, Fimbank plc shares reversed some of their previous week’s advance, as six deals of 71,000 shares dragged the banking equity’s share price to $0.915 after recouping some ground from an intra-week low of $0.88.
There was no change in the price of Lombard Bank Malta plc shares, which closed at €2.10 on a thin volume of just 2,155 shares.
Telecommunications company GO plc continued to trend higher for the 10th consecutive week, up by 0.9 per cent to €3.25 after a turnover of €80,000. In an announcement last 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.
Heading the list of gainers were shares of Malta Properties Company plc, which rallied by 5.4 per cent to €0.59 as 109,399 shares changed hands in 13 deals after failing to sustain a six-month high of €0.60 reached on Tuesday.
In an announcement last Monday, the company referred to a previous announcement regarding a potential mixed-use development incorporating the use of the company’s St George’s Exchange in St Julian’s. The company announced that it had entered into a tripartite memorandum of understanding regarding a proposed development at this site which will 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.
In the same sector, Plaza Centres plc notched a 3.6 per cent gain to close at €1.14 – a six-week high – following eight deals of 138,086 shares, whereas Tigné Mall plc shares appreciated by 1.4 per cent to €1.08 – a five-month high closing price – after eight deals of 50,505 shares.
Similarly, Malita Investments plc shares ticked 1.2 per cent higher to a two-month high of €0.88 after they were active in a low volume worth €4,500.
On the other hand, shares of Midi plc plunged by 6.9 per cent to €0.325 after nine deals of 63,685 shares after recouping from a 11-month low of €0.32 last Wednesday.
A single transaction of a mere 200 shares in Loqus Holdings plc was executed at €0.139 – representing a week-on-week gain of 2.2 per cent.
Shares of RS2 came under further selling pressure, as 66,145 shares forced the equity’s price down by 4.3 per cent to a four-week low of €1.57.
Medserv plc shares recorded a 1.3 per cent gain to close at €1.57 as nine deals of 31,935 shares were struck.
The other gainer for the week was Malta International Airport plc, whose shares increased by a marginal 0.2 per cent, to end the week at €4.27. After close of trading last Friday, the company announced its traffic results for 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 last year.
Maltapost plc shares lost 1.6 per cent to €1.85 after four deals of just 3,000 shares.
The other equity that lost ground last week was Simonds Farsons Cisk plc, whose share price ended 0.7 per cent in the red to close at €7, as the equity turned ex-dividend last Tuesday.
Trading in the corporate bond market was spread across 21 issues, reaching a turnover of €1.28 million – five issues registered a gain, six declined while 10 closed flat.
Significant declines were noted in the six per cent Mediterranean Bank plc subordinated unsecured € 2019-2024 and the 4.5 per cent Hili Properties plc unsecured € 2025 to close at €103.01 and €101 respectively.
A negative trend was witnessed in the sovereign bond market as all 27 stocks active last week closed in negative territory. This came as a reaction to speculation of a potential gradual winding down of European Central Bank bond purchases before the conclusion of quantitative easing. The ECB quantitative easing programme is due to run until the end of March 2017, with the possibility of further extensions. Total turnover declined from €11.5 million to €10.2m, of which €3.8m was traded in the 2.4 per cent MGS 2041 (I) r which also suffered the worst drop of 1.7 per cent to €106.75.
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.