The Malta Stock Exchange index extended last week’s loss by a further 1.21 per cent to 3,451.611 points over a higher, but more concentrated, turnover. On Wednesday, the index ended April up 0.79 per cent on the previous month, and just a few points shy from its one-month low of 3,443.023 points reached on Tuesday.
Contributing to the index’s negative performance over the week, were shares in the banking sector. Primarily, trading in Bank of Valletta plc shares accounted for most of the loss, as it headed the list of fallers following the issuance of its interim six-month results last week.
On the other hand, MaltaPost plc rebounded from its eight-month low, whereas RS2 Software plc traded just below its all-time high.
Activity was spread over nine issues, of which gainers, losers and non-movers tallied at three. Turnover more than doubled to €911,900, as investors’ attention shifted primarily to BOV shares.
Bank of Valletta plc shares witnessed two bouts of selling pressure on Monday and Tuesday, dragging the banking equity’s price down to its one-month low of €2.181. This followed the bank’s announcement after trading hours on Friday week that a 21 per cent decline in pre-tax profit was reported to €50.7 million. BOV closed marginally up by 0.05 per cent over the month of April. However this week, the equity fell 4.4 per cent, to the €2.2 price level. Trading in BOV accounted for 74 per cent of total turnover, as 97 deals of 306,162 shares were negotiated.
Shares of Lombard Bank plc witnessed a three per cent decline in price to €1.63 – a price not seen since November 2012 – albeit on thin volume, in which four trades of just 1,100 shares were struck.
The other faller for the week was HSBC Bank Malta plc, whose shares eroded all of last week’s 0.4 per cent gain, as 32 trades of 70,954 shares led to a 0.4 per cent decline to its five-year low of €2.141. Over the month of April, HSBC’s share price balanced off any gains and losses witnessed throughout the month.
On a more positive note, MaltaPost plc shares rebounded from their eight-month low of €1.02, closing two per cent higher over a single deal of 2,000 shares. The postal services firm’s share price plunged by 9.6 per cent during the month of April.
In the IT sector, RS2 Software plc was the only equity to register any movement, whereby an initial loss on Tuesday was more than reversed by the end of the week. The IT stock edged 0.4 per cent higher to close just €0.01 shy of its all-time high closing price of €2.43. Total trading was noted over 10 transactions of 20,625 shares. During the week, the company announced that it has concluded and signed an agreement with the government with regards to the company’s new investment in Gozo with an initial investment of €1 million.
Its peer, 6PM Holdings plc was active on four trades of 6,116 shares, which left no impact on the equity’s price, as it closed unchanged at its all-time high of €0.755.
Trading in Malta International Airport plc shares led to a minimal 0.04 per cent appreciation in price, as it failed to sustain intra-week highs of €2.26. Trading activity took place over 13 deals of 7,350 shares, in which the stock price closed at the €2.241 price level.
Island Hotels Group Holdings plc traded flat at €0.85, on two transactions of 5,000 shares. On Tuesday, the company announced it has submitted an application to the Listing Authority requesting the admissibility to listing of 350,000 Bonds 2024 of a nominal value of €100 per Bond issued at par for an aggregate of €35m. The proceeds will mainly be used by the company for the refurbishment and construction works at the Radisson Blu Resort in St Julian’s; the development and operation of the Costa Coffee brand – both locally and in Spain; and for other general corporate funding purposes.
The other non-mover for the week was Malita Investments plc at €0.54, whereby one trade of 10,000 shares was struck.
On Wednesday, Simonds Farsons Cisk plc approved its financial year-end statements for the year-ended January 31, 2014. The group registered a profit before tax of €6.85m, compared to €6.48m registered in 2013. Revenue for the period under review amounted to €78.6m, a rise of 1.9 per cent from 2013. EPS increased to €0.211. The board of directors also resolved to recommend for the approval of a final net dividend of €0.05 per share to the company’s annual general meeting – payable to shareholders on the company’s share register on May 19. Meanwhile, no trading took place throughout the week. On a year-to-date basis, the stock has gained 5.3 per cent, and has maintained its all-time high closing price of €3.
On the corporate bond front, turnover rose by 75 per cent to €392k, in which 17 issues were active – seven gained in value, three retreated, while 10 closed unchanged. The 7.5% Mediterranean Investments Holding Plc € 2015 headed the list of gainers, with a 1.5 per cent advancement to €102, whereas the 6% AX Investments Plc 2024 was once again the most traded issue, with a turnover of €117k.
In the sovereign debt market, turnover shrunk from €27m the prior week, to €12.8m over 25 traded issues – out of which 18 inched higher, six slipped, while one closed unchanged. The 4.65% MGS 2032 (I) was the only long-dated issue to retreat – to €105.42; while the 3.75% MGS 2015 (VI) was the most liquid issue, over a turnover worth €4.2m.
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.