The Malta Stock Exchange (MSE) index erased its previous week’s minimal decline of 0.1 per cent by rebounding by 0.4 per cent to close at 4,734.735 points.
The major contributors towards this gain were the two main banks, namely HSBC Bank Malta plc and Bank of Valletta plc (BOV), as both equities registered solid gains. In fact, these equities’ gains helped temper the tone, as out of the 17 active issues six lost value, six gained ground and five remained unchanged. Total turnover during the holiday-shortened week fell from €1.9 million to €1.09m.
In the banking industry, HSBC extended its winning streak for the third consecutive week as the equity closed at a weekly high of €2.06 – a two per cent gain and a fresh three-year high – as investors await the bank’s financial results for 2016 to be announced later this month. The equity was the top performer among the listed banks, generating a total turnover of €232,086 spread over 26 deals – thus almost doubling its turnover week-on-week.
Meanwhile, BOV shares initially had a rocky start to the week, having dropped to €2.15; however it managed to not only recoup this loss, but to also end the week with a 0.9 per cent gain to close at a weekly high of €2.189 – a nine-year high. The equity enjoyed the highest turnover last week, amounting to €471,259 spread over 48 deals.
Lombard Bank Malta plc shares were the only ones to fall in price among the listed banks. They declined by four cents to close at €2.24 after a turnover of €32,618 spread over three transactions.
There was no movement in the closing price of Fimbank plc shares, which closed at $0.89 as two deals of 36,000 shares were struck.
Elsewhere, GO plc erased part of its previous week’s gain as the equity declined by 0.6 per cent to close the week at €3.43, after dropping to a low of €3.41 and reaching a high of €3.45 intra-week. A total of 23,200 shares were exchanged in six transactions.
Two deals of 5,600 shares in International Hotel Investments plc (IHI) failed to alter the price of the equity, which closed flat at €0.65.
Malta International Airport plc (MIA) ended the week practically unchanged as eight transactions generated a total turnover of €59,913 to close at 4.032, just failing to maintain its intra-week high of €4.08.
Last Tuesday, the company announced its traffic figures for January. The company exceeded the 300,000 passenger mark for the first time. Hosting precisely 301,289 passengers in January, the airport’s traffic for the month increased by 27.3 per cent, an increase of 64,699 passengers over the same month last year. This growth was registered on the back of an upturn in both aircraft movements and seat capacity, which grew by 22.1 per cent and 27.7 per cent, respectively. Enhanced connectivity with markets such as Germany, Spain and Italy contributed to this growth.
RS2 Software plc was back in positive territory after four weeks of declines, albeit with a marginal 0.3 per cent gain, closing at €1.765.
Meanwhile, the share price of Simonds Farsons Cisk plc (SFC) stumbled by €0.10 from the previous week’s all-time high to close at €7.20 as four deals with a total turnover of €17,201 were struck.
In the property sector, Plaza Centres plc shot up to €1.15 in last Tuesday’s session only to fully erase its spike in the following session to end the week flat at €1.10 as 13,000 shares changed hands in two deals.
Midi plc and Tigné Mall plc remained unchanged amid low trading volumes to close last week at €0.33 and €1.121 respectively.
Despite generating a total turnover of €86,828 in seven transactions, Malita Investments plc’s share price dipped by 3.9 per cent to close at €0.81 – a two-year low.
A deal of 5,000 shares in Malta Properties Company plc (MPC) added 3.8 per cent to its share price, which closed the week at €0.552.
In the oil and gas industry, Medserv plc fell a fraction short of €1.60 as the equity closed at €1.599 – after a total of 15,000 shares were exchanged in two deals.
Mapfre Middlesea plc shares failed to veer their previous closing price of €2.22 as three deals worth €6,875 were executed. On the other hand, three deals amounting to a total turnover of €10,634 in Maltapost plc contracted the equity’s price by 0.5 per cent to close at €2.039.
The sovereign debt market bounced back into positive territory as 19 out of the 23 active issues rose in value while four lost ground. A strong session last Thursday pushed stock prices upwards, in line with European counterparts.
The bond issues maturing between 2029 and 2041 were among the top performers, registering gains between 0.1 and one per cent.
The 4.1 per cent MGS 2034 (I) closed one per cent up at €129.85, as total turnover in the bond amounted to almost €432,000 spread over 25 transactions. The 2.5 per cent MGS 2036 took the lion’s share of total trading with a turnover of €1.8 million out of a total turnover of €7.1m.
Last Wednesday, the Treasury announced the prices of the first issuance for 2017 of €130 million Malta Government Stocks – subject to an over-allotment of €90 million. The 1.4 per cent MGS 2023 (III) was priced at €104.00, having a yield-to-maturity of 0.788 per cent, the 1.5 per cent MGS 2027 (I) was priced at €100.50, having a yield-to-maturity of 1.448 per cent and the 2.2 per cent MGS 2035 (I) at €100.25, having a yield-to-maturity of 2.184 per cent. Applications are now available and will close on Wednesday or earlier at the Accountant General’s discretion.
In the corporate bond market a total of 23 issues were active, of which three gained ground, eight closed in negative territory, while 12 remained unchanged. Two deals of 16,900 nominal in the 7.15 per cent Mediterranean Investments Holding plc GBP 2015-2017 dragged the bond’s price down by 4.95 per cent to £95.05. On the other hand, the six per cent Pendergardens Developments plc Secured € 2022 Series II added 2.92 per cent to its bond price to close at €114.50 – generating a total turnover of €50,380 spread over three transactions.
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.