The Malta Stock Exchange (MSE) Index failed to sustain a four-week winning streak as selling pressure during yesterday’s session reigned.
The index lost its upward momentum, primarily as a result of losses registered by HSBC Bank Malta plc (HSBC), RS2 Software (RS2) and to a lesser extent by Bank of Valletta plc (BOV). Meanwhile, heading the list of gainers was 6PM Holdings plc (6PM), followed by Malta International Airport plc (MIA) and GO plc.
Activity was spread across 18 equities, of which losers outweighed gainers by two, while six closed the week unchanged. The index retreated by 0.42 per cent to close at 3,524.91 points – down to a year-to-date gain of 9.75 per cent. Turnover during the week increased by just under five per cent to €1.7m, when compared to last week, with the number of shares traded reaching €2.7m – of which €2m where negotiated in MIDI plc.
On the sovereign debt front, 18 issues were traded, with turnover decreasing by a further 36 per cent to €3.2m. A total of 11 issues advanced, while seven marginally lost ground. The best performer for the week was the recently issued 4.65% MGS 2032 (I), which rose by a further 1.6 per cent to €102.73. The most liquid issue was the medium-term dated 3% MGS 2019 (III), with activity representing 39 per cent of total trading volume in nominal terms.
In the corporate bond market, 25 issues were active of which four inched higher, six drifted lower, while 15 closed unchanged. - registering an increase in value of 83 per cent to €1.2m. The 5.9% HSBC Bank Malta plc 2018 was the top performer, gaining 1.8 per cent, to close at €111.
In the more volatile equity market, further interim directors’ statements were published – most of the companies stated that performance for the past three months was more or less in line with projections, with no need for statements regarding any material activity or extraordinary events. The special purpose vehicle Malita Investments plc, in its interim directors’ statement also pointed out a fair value gain on movement in the company’s investment property, which amounts to just under €4.1m. The equity was traded over a single deal of 50,000 shares, to close marginally lower by 0.2 per cent at €0.531.
In the IT sector, all three equities were active, with 6PM being the sole equity to lock in gains, soaring by 11.1 per cent to £0.70. 6PM shares were exchanged over 13 trades of 54,585 shares, and reached intra-day highs of £0.75. On the other hand, RS2 Software plc (RS2) lost ground for the first time in nine weeks, after selling pressure across 34 transactions of 148,172 shares, resulted in a 2.1 per cent fall in price to €2.30 – the equity touched the €2.38 price levels in intra-day trading during Monday’s session. The other active equity in the same line of business was Crimsonwing plc, closing unchanged at €0.85.
Trading in MIA shares led to a full recovery of last week’s 1.9 per cent decline, to close the week at new highs of €2.145. Trading activity was noted on six deals of 7,590 shares.
The telecommunications company GO, continued to trade higher, appreciating by a further 1.9 per cent to €1.61, witnessed over 27 trades of 94,420 shares.
Another large capitalised stock – in terms of outstanding shares and price – is International Hotel Investments plc (IHI), which increased by 0.7 per cent to €0.775 – seven trades of 20,965 shares were struck. Another gainer for the week was Plaza Centres plc, strengthening by 0.9 per cent to €0.57, taking place over a single trade of a mere 500 shares.
In the banking sector, the primary laggard was HSBC, responsible for most of the index’s negative performance after a single deal of just 765 shares on Friday’s session, dragged the equity’s price down by 1.9 per cent. The equity lost 2.3 per cent over the week to close at €2.60, on a total trading volume of 30,045 shares. In its interim directors’ report issued on Monday, the company reported a modest decline in profit before tax for the period July 1 to November 18, 2013, when compared with the comparable period during 2012.
BOV was active across 38 deals of 79,338 shares, oscillating between weekly highs of €2.629 and lows of €2.60. The banking equity’s share price shed 0.2 per cent to end the week at €2.623.
FIMBank plc closed the week unchanged at $0.945 after losses registered on Monday’s session were then recouped during Tuesday’s trading session. Similarly, Lombard Bank plc closed unchanged at €1.87.
Trading activity in MIDI plc accounted for more than 30% of total trading value. On Wednesday, 2m shares exchanged hands on a single trade, leading to a 1.9 per cent loss in its share price to €0.255.
On Thursday, Medserv plc held its extraordinary general meeting, in which the shareholders considered and approved an increase in the nominal value of its shares to €0.25, and to put into effect a share split of 2.5 shares for every one registered share, for those shareholders on the company’s register on December 2, 2013. The company’s share price declined by 0.6 per cent to €3.35 –traded across eight transactions of 48,800 shares.
Simonds Farsons Cisk plc (SFC) failed to continue trading at the €2.90 closing high price, as 2,800 shares traded during Tuesday’s session, pushed the price lower by 1.7 per cent to €2.85.
Other non-movers for the week were MaltaPost plc, Middlesea Insurance plc, and Tigne Mall plc, which closed at €1.12, €0.85 and €0.505 respectively.
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: 21224410, or email info@jesmondmizzi.com