The Malta Stock Exchange (MSE) index extended last week’s gain by 0.53 per cent to 3,703.617 points – resulting in a monthly gain of 0.48 per cent, following some downturns witnessed during the first half of the month.
Last week, the index was led in opposing directions by shares in the banking sector, whereby shares of Bank of Valletta plc (BOV) and Lombard Bank plc lost ground, while HSBC Bank Malta plc and Fimbank plc ended the week in positive territory. Moreover, new all-time highs were reached by Simonds Farsons Cisk plc (SFC), and Malita Investments plc.
A total of 16 equities were traded last week, half of which advanced, three registered a loss, while the other five closed unchanged. Turnover for the week edged five per cent higher to €1.35 million.
In the banking sector, Fimbank was the best performing equity, locking in a 3.2 per cent gain as 15,985 shares changed hands in eight deals.
Following the bank’s announcement on Tuesday regarding the joint voluntary bid by Burgan Bank S.A.K. and United Gulf Bank, which have now acquired 80.14 per cent shareholding in Fimbank, the board of directors met on Wednesday and unanimously resolved to request the listing authority’s approval to remain listed on the Malta Stock Exchange – despite the fact that the percentage of ordinary shares admitted to trading on the MSE that are in the public’s hands has fallen below the 25 per cent threshold as required by the listing rules.
Trading in HSBC resulted in a 0.4 per cent appreciation in price, as 36 deals of 65,227 shares were struck. The banking equity’s share price witnessed a mid-week low of €2.53.
On a sour note, BOV shares retreated from their six-year high reached in the previous week, as 115 deals of 193,783 shares shed 0.4 per cent off the equity’s price. Trading in BOV accounted for 36 per cent of total trading value.
On Thursday, the bank published its interim directors’ statement, indicating that for the period starting October 1, 2013, till the date of the announcement, no material events or transactions had taken place that required specific disclosure.
It also stated that Fitch had confirmed BOV’s long-term credit rating at BBB+, outlining the bank’s leading franchise, strong funding base and its liquidity position, which benefits from a large and stable customer deposit base.
As from November 1, 2014, the bank will become subject to direct supervision by the European Central Bank (ECB) under the Single Supervisory Mechanism. The ECB will conduct an asset quality review of BOV over the coming months, with the aim of evaluating the quality of its assets before the new supervisory arrangement comes into effect.
Another faller in the banking sector was Lombard, which posted a 2.1 per cent loss after a single trade of a mere 62 shares.
Shares in SFC maintained their upward trend over the past two years, advancing by a further 1.7 per cent to close at a new record high of €2.95. There were three transactions of 1,733 shares.
An all-time record price was also reached by Malita Investments, as it closed at €0.54 last Friday when four deals of 64,643 shares worth €35,000 were registered.
Meanwhile, 15 transactions of 35,783 shares in telecommunications company Go pushing its share price up by 1.9 per cent to €1.885 – a three-year high.
Malta International Airport plc (MIA) shares completely recovered from the previous two weeks’ losses, closing the week 1.6 per cent higher, to return to an all-time-high closing price of €2.20, which had previously been reached at the beginning of the month. There were a total of 15 deals of 22,914 shares.
Advances in International Hotel Investments plc (IHI) further enhanced the MSE index’s positive performance as the equity’s price rose by 1.3 per cent after 15 deals of 203,224 shares. The value of turnover in this equity – €186,000 – was the second-largest of the week.
Midi plc partially recouped its previous week’s 1.7 per cent loss after nine transactions of 100,295 shares pushed the equity price 0.7 per cent higher to €0.297, after having traded at a low of €0.282.
The worst performer for the week was Maltapost plc, with trading in the equity failing to sustain its all-time-high closing price of €2.15. The equity’s share price contracted by 2.6 per cent as 54,703 shares were exchanged in four deals.
The board of directors of Middlesea Insurance plc announced on Thursday that the board is scheduled to meet on March 13 to consider and approve the company’s audited financial statements for the year ended December 31, 2013, and to consider the recommendation of a dividend, if any. The company’s share price traded flat at €1.
Other non-movers for the week were Medserv plc, Crimsonwing plc, RS2 Software plc and Santumas Shareholdings plc.
In the corporate bond market, turnover shrank by more than nine per cent to €450,000. Out of the 23 traded issues, eight closed higher, six dipped, while nine closed unchanged.
The 7.5 per cent Mediterranean Investments Holding plc euro 2015 was last week’s worst-performing issue – down by 0.5 per cent. On the other hand, the 7.5 per cent Mediterranean Bank plc subordinated bonds euro 2019 headed the list of gainers – up by 0.5 per cent.
Meanwhile, in the sovereign debt market, activity was spread across 23 issues, with losses registered in 11 issues, most of which were short-dated and those maturing in 2028 and later.
On the other hand, 10 issues inched higher, while two closed unchanged. Turnover was down to €7.9 million, of which the 4.65 per cent MGS 2032 (I) represented 26 per cent of total trading value.
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 67, Level 3, South Street, Valletta, or on Tel: 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.