The Malta Stock Exchange index ended the year with another relatively strong performance. In fact, the index registered a gain for the fifth consecutive week. This week’s increment amounted to 0.64 per cent, to close at 4,630.879 points – a level last seen in April 2008.
In 2016, the MSE index gained 4.5 per cent, outperforming the broader European equity market, the Euro First 300 Index which was down by a marginal 0.7 per cent. Furthermore, both the sovereign and the corporate bond markets witnessed a positive last week for the year.
Trading in the equity market was spread across 16 equities of which seven closed in the black, five declined and four remained unchanged. Total turnover exceeded the €1.1 million mark.
In the banking industry, FIMBank plc shares greatly recovered from last week’s decline, as four trades of 9,800 shares helped the equity to appreciate by 4.7 per cent, to close at its eight-week high of $0.90, and topping the list of gainers for 2016 at 41.8 per cent.
Despite accounting for around 24 per cent of this week’s trading, Bank of Valletta plc’s share price remained at the same level as a mere increase of 0.04 per cent was registered. The price at the end of the final trading session for the year read €2.251, to lock-in a yearly gain of 3.8 per cent.
HSBC Bank Malta plc shares were the only losers in the industry for the week as €135,000 worth of trading, spread across 19 deals, triggered a decline of half a per cent. This was reflected in the €1.90 closing price resulting in a year-on-year gain of 7.8 per cent.
On the contrary, Lombard Bank Malta plc shares recouped last week’s losses, as five transactions worth €75,500 yielded a 0.4 per cent increase in price, to close at €2.30.
Mapfre Middlesea plc performed well as its shares gained 1.3 per cent across a single transaction of 1,350 shares executed at €2.249.
In the tourism sector, activity was witnessed in International Hotel Investments plc and Malta International Airport plc shares – the former declined by 0.8 per cent while the latter closed unchanged. Nine transactions worth €34,000 resulted in a closing price of €0.645 for IHI shares while a higher turnover of €119,000spread across ten trades, failed to veer the share price of MIS plc from the €4.05 level.
A total of 34,700 shares changed ownership in GO plc, causing the equity to curb in some of last week’s gains, as it closed in the red by 0.3 per cent. The closing price read €3.27.
Simonds Farsons Cisk plc shares maintained the €7.00 price tag, which is equivalent to an 11-week high, as eight trades worth €78,000 were executed.
Likewise, trading in Plaza Centres plc and Medserv plc failed to leave an impact on their respective share prices. Turnover reached €26,000 for Plaza Centres plc shares and €38,000 for Medserv plc shares.
RS2 Software plc shares were once again the top performers for the week as these appreciated by 5.8 per cent. This share was the second most traded equity in 2016, second to Bank of Valletta plc, with total turnover exceeding €16.3 million. Moreover, the equity registered a weekly turnover of €183,000 and closed at €1.82 – thus ending the year in positive territory by 1.3 per cent. Intra-week, RS2 shares also touched a four-month high level of €1.827.
Albeit on thin volumes, MaltaPost plc shares, lost two thirds of last week’s gains as the price declined by one per cent to settle at €2.03. A plausible justification for this is the fact that the equity turned ex-div on Tuesday, down from its all-time high of €2.05.
Two trades tallying to 25,493 shares in Malta Properties Company plc yielded a 1.7 per cent increase in price ending the week and year at €0.59.
MIDI plc shares were the second best performers of the week, as three trades worth a total of €10,000, lifted the price up by 4.8 per cent to reach €0.351.
Elsewhere, Malita Investments plc traded twice on low volumes to register a decline of 0.4 per cent and closing at €0.857.
Over the week, turnover in the sovereign debt market stood at €6.6 million, to reach a yearly total trading value of €551.8 million, albeit lower than the €777 million registered in 2015. All long-dated issues continued to recover ground, as yields contracted. Over the year, most issues with medium-to-long-term maturities are still higher, notwithstanding the sell-off witnessed across the fixed-income segment following the US election in early November – whereby the market started to anticipate that Donald Trump’s policies could result in higher inflation that in turn could lead to higher interest rates. Strongest gains in 2016 were recorded across the 3% MGS 2040 (I) r and the 2.5% MGS 2036 (I) issues, up by 10.3 and 8.2 per cent, respectively.
On the corporate debt front, trading value reached €1.24 million, for a total yearly turnover of €57.9 million – as opposed to €59.8 million recorded in 2015. Over the week, half of the 30 traded issues headed north, four fell out of favour, while 11 closed unchanged. Substantial gains were registered across two International Hotel Investment issues, the 5.75% International Hotel Investments plc Unsecured € 2025 and the 4% International Hotel Investments plc Unsecured € 2026 – up by four per cent and two per cent, respectively. Meanwhile, on a yearly basis, activity was mixed, with strong gains being recorded in particular across new corporate issuances – amongst which the 4.5% Medserv plc Unsecured € 2026 and 3.9% Plaza Centres plc Unsecured € 2026 issues which are up by 5.1 and four per cent, respectively.
We would like to wish our readers a joyful end to 2016 and a prosperous upcoming year.
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.