The Malta Stock Exchange (MSE) index last Friday closed in the red for the second consecutive week, falling by 1.37 per cent to 4,442.867 points.
A total of 14 equities were active during the week, of which the majority closed in negative territory, five gained ground while two remained afloat.
Medserv plc shares managed to rebound from previous weekly declines as the equity put in the best performance of the week, closing at €1.678, after a total turnover worth €189,687, spread over 13 deals.
The equity’s positive performance followed the company’s interim directors’ statement in which it announced that revenue for the current financial year is expected to be close to the revised forecast amount of €38 million, which could improve if projects earmarked to start in the last quarter of this year marterialise.
In a separate statement (see article on page 34), the company announced that it had been re-awarded a contract by Eni North Africa to provide logistics base and associated services for exploration activities taking place offshore and onshore in Libya. The contract has been extended for one year with the possibility of extending it for another year.
Bank of Valletta plc (BOV) shares oscillated from a high of €2.27 to a low of €2.20, closing the week at €2.201 after a total turnover worth €458,315, spread over 64 deals.
A substantial portion of BOV’s fall occurred in last Friday’s session, following the media report that Fitch rating agency had downgraded the bank to BBB from BBB+. In reaction to this, the bank’s CEO explained that the downgrade in the long-term rating is driven by Fitch’s view that the bank needs to increase its capital levels in an environment of rising regulatory requirements.
Last Friday, the bank announced that its annual general meeting will be held on December 16 to approve the company’s financial statements for the year ended September 30, 2016, the payment of a gross final dividend of €0.0852 per share and a bonus share issue of one for every 13 shares held.
On a similar note, HSBC Bank Malta plc shares also lost ground, as the equity fell by 2.7 per cent to close the week at €1.80.
Total turnover for the week amounted to €70,835, spread over 16 transactions.
RS2 Software plc shares snapped a four-day winning streak last Friday to close at its weekly low of €1.536. Total turnover amounted to €123,212, spread over 28 deals.
For the third consecutive week, Fimbank plc shares closed in negative territory, contracting by 1.8 per cent, to close the week at $0.835 after a total turnover worth $25,300 spread over three deals.
Earlier in the week, the company had announced the finalisation of the 100 per cent acquisition of Commercial International Bank SAE and CIB Social Insurance Fund’s shareholding in Egypt Factors by Fimbank plc, Fim Factors BV and Fim Business Solutions Ltd.
In the same sector, two deals amounting to 10,000 shares marginally altered the share price of Lombard Bank Malta plc, which closed the week at €2.10.
The price of International Hotel Investments plc (IHI) shares dipped by 4.6 per cent, registering a third consecutive weekly decline, and closing the week at €0.62. Total turnover amounted to €1,899, spread over two deals.
Despite trading 15 times during the week with a turnover totalling €104,000, the price of Malta International Airport plc (MIA) shares failed to veer, closing unchanged at €4.08.
Maltapost plc shares oscillated between positive and negative ground during the week, closing 1.6 per cent higher at €1.88. Total turnover amounted to €18,098, spread over seven transactions.
Last Monday, Santumas Shareholdings plc announced that the one-for-10 bonus issue allocated to shareholders on the company register as at November 18, 2016, were available for trading from last Tuesday, while the share split as approved at the company’s annual general meeting will be allocated to registered shareholders as at close of business last Friday and will be available for trading tomorrow. The equity last traded at €2.402 as total turnover amounted to €94,155 spread over five deals.
Tigné Mall plc shares made a strong late run as the equity gained 1.9 per cent during the week to close at €1.10. Total turnover was €83,566, spread over six deals.
Malta Properties Company plc started off the week in negative territory but recouped its losses later in the week to close unchanged at €0.60. Total turnover amounted to €10,981 spread over seven deals.
Simonds Farsons Cisk plc (SFC) started off the week on a positive note, but this was curbed during the week, closing in negative territory as the price fell by 1.5 per cent. Total turnover amounted to €21,036 spread over five deals.
Six deals of 33,405 shares in Malita Investments plc managed to increase the price by 2.2 per cent, to close the week at €0.869. Meanwhile, two deals of 5,000 shares, in Global Capital plc led to a drop of 2.2 per cent, to close the week at €0.44.
Elsewhere, 5,000 shares spread over seven deals were enough to lower the price of GO plc, which closed the week at €3.24.
In the corporate debt market a total of 32 issues were active during the week, of which the majority closed in positive territory, eight declined and 11 remained afloat.
IHI announced that it has obtained regulatory approval for the issue of €40 million unsecured bonds with a coupon of four per cent, maturing in 2026. The bond will be issued at par, with a minimum subscription of €2,000, and will replace two existing issues, being the IHI 6.25 per cent 2017-2020 and the Island Hotels Group 6.5 per cent 2017-2019.
In the sovereign debt market a total of 22 issues were active, of which 12 closed in negative territory and 10 issues gained ground.
This article, which was compiled by 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 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 Ltd at 67, Level 3, South Street, Valletta, or on Tel. 2122 4410 or e-mail info@jesmondmizzi.com.