The Malta Stock Exchange (MSE) index posted a weekly gain of 2.33 per cent to hit a 15-week high of 4,545.787 points – its strongest weekly gain in 19 months. Solid gains were recorded by HSBC Bank Malta plc, Malta Properties Company plc (MPC) and International Hotel Investments plc (IHI). On the other hand, Malta International Airport plc (MIA) and RS2 Software plc weighed the index lower.

Total trading value rose from €859,000 to €1.1 million, spread across 16 equities, of which gainers and fallers tallied at six, while four stood unchanged. Last week’s rise in turnover may have been triggered by Finance Minister Edward Scicluna’s Budget speech in which he an­nounced that investors who do not own over 0.5 per cent share capital and dividend rights of a MSE-listed company will be entitled to claim a credit/refund of the underlying tax paid on distributed profits generated on or after January 1, 2017.

HSBC headed the list of gainers with an 11.8 per cent rally on the week, as its share price soared to €1.90 – a level last seen in May 2015 – they were active in the week’s highest turnover worth €332,000.

The share value of Lombard Bank Malta plc climbed by 3.8 per cent to €2.18, as 5,209 shares changed hands in three deals.

Conversely, Bank of Valletta plc (BOV) shares were unchanged at €2.29, despite enjoying the second highest turnover of €192,000. Last Friday, BOV announced that the board of directors is due to meet on Friday to consider and approve the group’s and the bank’s audited financial statements for the financial year ended September 30, 2016, and to consider the declaration of a final dividend to be recommended to the bank’s annual general meeting.

Similarly, the share price of Fimbank plc was unchanged at $0.88, despite a trading volume of 158,579 shares spread across 11 deals.

In its interim directors’ statement last Wednesday, the bank reported a positive trend during the first half of the year with regard to its performance and objectives. Cost control measures have led to positive results and the management of risk appetite has improved the quality of the assets’ portfolio. The restructuring process of the existing factoring network is also under way and the company expects good quality business origination by the end of the year. In view of difficult market conditions, the company has adopted a very conservative and prudent business model and approach.

Mapfre Middlesea plc shares fell by a further 3.4 per cent, adding on its previous week’s 1.4 per cent drop to close the week at €2.00, as four deals of 5,916 shares were struck.

In its interim directors’ statement last Thursday, the company an­nounc­ed that it envisages a fall in net profit for the financial year ending December 31, 2016, due to the one-time reinsurance cost saving adjustment carried in the financial statement of MSV Life plc in 2015 and a deterioration in the technical performance of the motor class. However, the company reported that its solvency position remains well above regulatory requirements.

Global Capital plc was the main laggard of the week when it closed at €0.47 – down by 4.1 per cent – on thin volume of 2,550 shares.

Similarly, in the IT services sector, RS2 shares fell by 3.2 per cent in value to close the week at a six-week low of €1.50 – they were active in 34 deals of 77,044 shares.

Malta Properties Company plc rebounded from the previous week, rallying by 9.5 per cent to hit an 11-month high at €0.62. The equity was negotiated in a volume of 157,301 shares spread across 23 deals.

Malita Investments plc shares recovered by 2.5 per cent as its share price closed the week at €0.879, after seven deals of 98,860 shares.

Meanwhile, the share price of Plaza Centres plc eased by a further 0.9 per cent to €1.12, as eight deals of 39,049 shares were struck.

Among the list of gainers, IHI shares locked in a weekly gain of 3.9 per cent, to close at €0.66, while the share value of telecommunications company GO plc rose 1.6 per cent higher to €3.20 after a single deal of a scant 5,000 shares.

Medserv plc continued to fall by a further two per cent to close the week at a seven-week low of €1.50, while MIA shares retreated by 0.72 per cent to close at €4.15 after 3,950 shares were traded in five deals.

There was no movement in the closing price of Grand Harbour Marina plc and Maltapost plc shares, at €0.869 and €1.85, respectively.

In the corporate bond market, total turnover amounted to €1 million. Of the 28 traded issues, nine rose in value, 11 eased lower and eight were unchanged. Newly listed 4.8 per cent Mediterranean Maritime Hub Finance plc unsecured € 2026 issue gained three per cent to close at €102.99 while the five per cent Dizz Finance plc unsecured € 2026 rose two per cent to close at €102.

On the sovereign debt market, only three short-dated issues out of the 25 active issues closed lower, while the remaining 21 long-dated issues rose and one was unchanged.

Total trading value stood at €19.8 million, of which 50 per cent was traded in the 2.4 per cent MGS 2041(I) issue, which closed the week at €110.51. Stocks maturing between 2034 and 2041 registered gains ranging between 2.2 and three per cent.

In his Budget speech, the Minister for Finance indicated that the Treasury will be issuing special savings bonds with attractive interest rates targeted specifically at pensioners, a recommendation the author had made to the government in 2015.

Last Thursday, the European Central Bank announced its intention to keep interest rates at present or lower levels for longer after having stated that interest rates were currently being kept unchanged – this was in line with expectations. ECB president Mario Draghi stated that there had not so far been talks on ending Quantitative Easing and signalled that it would be discussed in December. He added that it was likely to be gradually wound down or tapered but that the bank will ensure the smooth implementation of the purchase programme until March 2017 or beyond if necessary.

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.

Sign up to our free newsletters

Get the best updates straight to your inbox:
Please select at least one mailing list.

You can unsubscribe at any time by clicking the link in the footer of our emails. We use Mailchimp as our marketing platform. By subscribing, you acknowledge that your information will be transferred to Mailchimp for processing.