The Malta Stock Exchange index opened the two-day trading week at its five-week high of 3,303.699 points, to then partially reverse these gains in Tuesday’s session – gaining 0.7 per cent on the week.
Moving the market were shares in the banking sector – particularly the share price of HSBC Bank Malta plc, which registered substantial movements on low turnover.
Total trading value reached €237,000, as opposed to the €1.4 million registered during the previous five-day trading week.
This was also reflected in the number of traded securities, which stood at eight – of which five outperformed the index, two fell out of favour, while one closed unchanged.
In the banking sector, Bank of Valletta plc shares shaved 0.5 per cent from the previous week’s 1.4 per cent advancement, as a 0.2 per cent gain on Monday was more than offset by a 0.7 per cent decline the following day. The banking equity was the most liquid issue, active in 25 deals of 40,731 shares, to close at its weekly low of €2.20.
Its peer, HSBC Bank Malta plc, touched a six-week high of €1.975 on Monday, but then closed the week marginally lower at €1.95 – to register a weekly gain of 2.6 per cent, as 18,577 shares changed hands in eight transactions.
In the same line of business, Lombard Bank Malta plc announced that its board of directors is scheduled to meet on March 9, 2015, to approve the group’s audited financial results for the year ended December 31, 2014, and consider the possible declaration of a final dividend. No trading took place in the bank’s equity during the week.
Telecommunications company GO plc strengthened by a further 1.2 per cent in the second highest turnover for the week, worth €69,000, to close at a four-week high of €2.55.
Similarly, shares of Malta International Airport plc ended the week up by 1.3 per cent as a single deal of just five shares was struck at €2.33.
Meanwhile, four deals of 11,500 shares pushed Medserv plc’s share price up by 1.1 per cent, to close at its 16-month high of €1.45. On a year-to-date basis, the logistics services company for oil and gas is up by 13.3 per cent.
Tigné Mall plc shares registered yet another record high of €0.60 following a 2.6 per cent gain following one deal of 8,000 shares.
One other equity to close in negative territory was Grand Harbour Marina plc, whose shares registered a minimal decline of 0.3 per cent – to yield investors a 2.5 per cent capital gain since the beginning of the year.
Throughout the year, government bonds were the best performing asset class, as flight to quality together with a relatively attractive risk-return trade-off, pushed stock prices higher and yields lower
In the corporate bond market, more than half of the 21 traded issues rose in value, six shed value, while four closed unchanged.
Total turnover amounted to €644,000, with the 5.5 per cent Pendergardens Developments plc secured euro 2020 and the 5.1 per cent PTL Holdings plc unsecured euro 2024 accounting for over a third of total trading value. These bonds are two among the 10 corporate bonds issued during the past year that are trading at a premium, as investors keep chasing higher returns given the current record low interest rate environment.
Meanwhile, the recently issued Six per cent Mediterranean Bank plc subordinated unsecured euro 2019-2024 jumped by two per cent to close at €102.01, and is now yielding around 5.7 per cent.
Likewise, in the sovereign debt market, 21 stocks were traded, of which 12 edged higher, eight closed in the red, while the long-dated 4.1 per cent MGS 2034 (I) r was the only issue to close unchanged. The most traded stock was the 4.45 per cent MGS 2032 (II), accounting for 31 per cent of the €2.62 million in total turnover.
Throughout the year, government bonds were the best performing asset class, as flight to quality together with a relatively attractive risk-return trade-off, pushed stock prices higher and yields lower. In fact, the 10-year yield stands at around 1.9 per cent, whereas a 20-year bond is yielding around 3.3 per cent, which are still substantially above the 0.60 and 1.23 per cent average yields in European government bonds.
I wish our readers a prosperous 2015.
This article, which was compiled by Jesmond Mizzi, managing director of 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 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 at ½, St Joseph High Street, Ħamrun, or on Tel. 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.