The Malta Stock Exchange (MSE) index continued its positive rally, closing 1.22 per cent higher at 4,601 points, as turnover spiked from €1.17 million to €2.12m. A total of 18 equities were active during the week, of which half closed in positive territory, six declined and three closed unchanged.

RS2 Software plc shares soared by 6.2 per cent as the equity closed the week at a three-month high of €1.72. Total turnover amounted to €176,681, spread over 30 transactions – registering the highest turnover in seven weeks.

In the first six months of the year RS2 Software registered a substantial decrease in profits before tax of 48 per cent at €3.4 million. This was mainly attributable to an increase of expenses as the group gears up for further growth and also due to currency fluctuations.

This had an impact on the equity’s share price as it contracted by 4.25 per cent in 2016 compared to last year’s 116.4 per cent year-on-year growth. The equity has recovered somewhat in recent weeks as investors saw this as a buying opportunity.

Maltapost plc extended last week’s 7.7 per cent gain by a further 1.5 per cent to close the week at €2.05. Total turnover during the week amounted to €41,794, spread over eight deals.

Bank of Valletta plc (BOV) shares oscillated between positive and negative ground intra-week, to finally advance by 0.45 per cent – closing the week at €2.25. Total turnover more than tripled from the previous week as total turnover amounted to €583,160, spread over 80 transactions.

Year-to-date the equity gained 3.73 per cent, having traded at high volumes during the year.

This month, shareholders appointed the bank’s new board of directors at the annual general meeting and the government announced the appointment of a new chairman, Theodore Scerri.

The bank reported promising financial interim results for the year ended September 30, 2016. Despite these results and the bank’s ongoing success, Moody’s downgraded its rating to BBB from BBB+. This had a limited effect on its share price as in a short period of time the market overturned this negative outcome.

After experiencing a marginal decline in its share price, Midi plc managed to recoup to close unchanged at €0.335. Total turnover amounted to €60,959, spread over eight deals.

HSBC Bank Malta plc shares climbed 2.7 per cent to close the week at €1.91 after trading at a high of €1.945 and a low of €1.862 intra-week. Total turnover for the week amounted to €308,079, spread over 36 deals.

In its interim financial statements, the bank reported that it had registered a year-on-year increase in its interim profits after tax of 13.8 per cent – from €41.3 million registered in the first six months of last year to the €46.3m registered in the first six months of 2016. The positive result was reflected in the equity’s performance as it registered a solid year-to-date increase of 8.4 per cent, when compared to last year’s marginal increase of 0.4 per cent.

In the same sector, Fimbank plc shares erased a substantial part of the previous week’s gain as the equity declined by 1.7 per cent to close the week at $0.86. Total turnover amounted to $142,000, spread over 10 transactions.

RS2’s share price contracted by 4.25 per cent in 2016 compared to last year’s 116.4 per cent year-on-year growth. The equity has recovered somewhat in recent weeks as investors saw this as a buying opportunity

After registering the best performance last week, a single deal of 3,200 shares in Lombard Bank Malta plc managed to contract the equity’s price by 0.4 per cent to close at €2.29.

Mapfre Middlesea plc shares made a strong late run last Friday as the equity saw its price increase by 4.7 per cent to close the week at €2.22. Total turnover amounted to €6,338, spread over three deals.

On a negative note, a single deal of 1,690 shares in Global Capital plc managed to drag down the equity’s price by 6.8 per cent to close the week at €0.41.

International Hotel Investments plc (IHI) traded heavily during the week as total turnover amounted to €266,457, spread over 25 deals. The equity managed to recoup its mid-week decline, to close 1.7 per cent higher at €0.65.

The equity started off the year at the price of €0.725 and is down 10.7 per cent year-to-date.

In 2016, the company purchased QPM Ltd, and its subsidiary CHI Ltd signed an agreement with the UAE-based Medan Group to provide resort services in Dubai.

During the year, IHI issued two bonds both at four per cent, of which one was unsecured while the other was secured.

Malta Properties Company plc (MPC) fell to last week’s intra-week low, as a single deal of 8,200 shares managed to drag the price back to €0.58.

Also in the property sector, Malita Investments plc managed to rebound from the decline suffered earlier in the week to close unchanged at €0.859. Total turnover amounted to €25,631, over four deals.

Meanwhile, Medserv plc shares slipped by 3.1 per cent to close the week at €1.599. Total turnover amounted to €86,706, spread over seven deals.

Despite a total turnover of €209,807 spread over 26 deals in Malta International Airport plc (MIA) the equity’s price closed unchanged at €4.05.

The company registered another positive year in terms of passenger movements with an overall year-on-year growth of 7.6 per cent, surpassing the five million passengers mark in mid-December.

Despite the Brexit outcome, this did not affect passenger inflows from the British market, which kept its top spot for another year. Meanwhile the Italian market made the largest improvement as it managed to surpass the one-million mark – narrowing the gap as compared to the UK market.

This positive outcome was also reflected in the company’s financial statements as the firm registered an interim year-on-year increase in profits of 11.9 per cent. Despite registering positive results this failed to reflect on the equity’s price as it registered a mere increase of 0.5 per cent, in contrast to the substantial year-on-year increase of 71.5 per cent registered last year.

In the telecommunications sector, GO plc closed the week in positive territory as the equity gained 0.95 per cent to close the week at €3.28 as turnover amounted to just over €99,000, spread over six transactions.

Simonds Farsons Cisk plc (SFC) shares gained a further 1.5 per cent to close the week at €7.00. A total of 3,979 shares were traded during the week, spread over four deals.

The share price of Plaza Centres plc weakened by 0.9 per cent to close the week at €1.09. Total turnover was just below €70,000, spread across five deals.

Elsewhere, two deals amounting to 3,694 shares in Loqus Holdings plc failed to sway the equity’s closing price, which closed at €0.165.

In the corporate bond market, trading was spread across 24  issues, of which 14 gained ground and seven fell, while three remained afloat.  The top performer for the week was six per cent Mediterranean Investment Holdings plc euro 2021 as the bond gained 1.98 per cent to close at €103.

In the sovereign debt market 21 bonds were traded, all of which ended the week in positive territory, with 12 issues closing more than one per cent higher, while the remaining registered lower gains.

The 5.2 per cent MGS 2031 (I) bond registered the  highest increase of 2.4 per cent to close at €148.48.

We wish our readers a Merry Christmas.

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.

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