The Malta Stock Exchange index failed to sustain its recent upward trend by recording a significant loss of 1.5 per cent to end the week at 2,960.079 points. Conviction among investors lacked throughout the week, as the index only managed to snap a gain on Wednesday, while it traded in negative zone in all the remaining sessions. Yesterday, the index experienced the worst session as it surrendered to the heavy losses by mainly Go plc and HSBC Bank Malta plc which waived away its recent bullish trend. On the contrary, FIMBank plc was the best performer of the week with an overwhelming gain of 13 per cent.
Activity in the week was characterised by the trading of 10 equities in which losers maintained their leadership over gainers, as six declined in value, three registered gains and one closed the week unchanged. Meanwhile, total turnover in the week increased further to a significant value of just over €1.3 million which was traded just above 1.5 million shares.
In the local government market turnover decreased to just over €10.2 million, traded over 20 issues. The appetite for local sovereign debt was lower this week, as 14 issues traded lower, five recorded minimal gains and one closed flat. The newly issued 4.3% MGS 2022 headed the list of losers by recording a loss of 1.2 per cent.
In the corporate bonds market activity was dealt over 23 issues in which nine gained ground, six edged lower and three closed unchanged. The best performer for the week was the 4.8% Bank of Valletta 2018 which gains 1.2 per cent.
In the equity market, financials experienced a relatively negative week as from the five active shares only two captured gains.
In fact, HSBC Bank Malta plc halted its four weeks of winning strikes as it headed southwards by recording a loss of 3.2 per cent or €0.085 to close the week at €2.55 despite having traded at a high of €2.63. The equity was active in four sessions in which it recorded losses in three while it closed unchanged on Thursday. Total trading volume amounted to considerable volumes of 142,893 shares which were dealt over 17 transactions.
Likewise, Lombard Bank plc slipped by a minimal 0.4 per cent on Wednesday over 400 shares to close at €2.52. On Thursday, announced that the board of directors is proposing a final gross dividend of €0.115 per share.
Similarly, Middlesea Insurance plc extended its losses by recording a loss of 1.4 per cent over low volumes of 883 shares to end the week at €0.69.
On the contrary, FIMBank plc shares surged by a sharp 13.3 per cent or $0.10 following positive results, in addition to possible takeover talks. On Wednesday, the equity soared by 20 per cent, while it than reversed 5.6 per cent from the registered gains in the following session to end the week at $0.85.
Bank of Valletta plc shares diverged to positive territory by recording a gain of 0.5 per cent. The equity was active in four sessions as it appreciated on Tuesday and Thursday while it closed flat in the other sessions to end the week at €2.16. A total of 26,525 shares changed ownership across 18 deals. On Tuesday, the bank announced that it will be issuing a maximum amount of €40 million in 4.25 per cent notes maturing in 2019.
From the telecommunications sector, Go plc share price yesterday touched an all time record low of €0.76 by recording a sharp loss of 9.3 per cent. The incurred loss was reflecting the negative financial results for 2011 which were published prior to the market open. The company published its financial statements for the year ending December 31, 2011, in which it stated that the group reported a loss before taxation of €45.2 million when compared to the €9.1 million loss registered in 2010. In their performance review the company stated that the negative results were heavily impacted by the company’s indirect investment in Forgendo Limited. In fact, the group has accounted for losses attributable to investment in jointly-controlled entities of €62.3 million. Furthermore, the board of directors stated that in such circumstances they do not recommend the payment of a dividend.
In addition, both International Hotels Investments plc and Malta International Airport plc marked themselves on the list of losers for the week. The former posted a loss of 3.9 per cent over two sessions to close the week at €0.75, while the latter depreciated by a scant 0.7 per cent yesterday to reach the €1.679 price level.
Meanwhile, Plaza Centres plc managed two snap back all the losses recorded in the previous week, as 2.9 per cent was added to its share value, thus regaining the €1.80 levels.
Finally, the non-mover for the week was Maltapost plc which maintained its previous closing price at €0.91.
This article, which was compiled by Atlas JMFS Investment Services Limited, does not intend to give investment advice and the contents therein should not be construed as such. Atlas JMFS is licensed to conduct investment services by the MFSA and is a member firm of the Malta Stock Exchange.
The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article.
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