The Malta Stock Exchange index extended its sell-off momentum by registering a further decline of 0.2 per cent to close the week at 3,436.851 points.
In line with the previous week, large caps emerged as the prime laggards for the week with the exception of International Hotels Investments plc which gathered investors support. Conversely, HSBC Bank Malta plc maintained its downward trend, while Malta International Airport plc followed as its recent bearish mode was upheld.
Total equity trading value during the week was noted at €556,738 traded over 13 issues, in which gainers and losers tallied to five, while non-movers totalled to three. Meanwhile, volumes of 421,169 shares changed hands across a total of 106 transactions.
In the local sovereign market, most of the active stocks experienced lower yields as investors fled to safety, thus pushing stocks towards higher prices.
In fact, as opposed to the previous weeks, a shift towards safer heavens was noted, as investors feared the ongoing unrest in Syria.
This was visible throughout the week with global equity markets turning volatile as pressure in the Middle East increased.
Total turnover for the week reached a remarkable value of €21.1 million, with €16 million being traded over the short-dated 6.45% MGS 2014 issue.
In the corporate front, yields were mixed as, from the 15 active bonds, six garnered support, two edged lower, while seven closed flat. The sole 5.6% Global Capital plc issue headed the list of gainers with a 3.5 per cent appreciation.
From the financial sector, Bank of Valletta plc emerged as the sole gainer for the week, as the equity managed to rebound from last week’s decline by registering a 0.4 per cent appreciation to close the week at €2.38. The banking equity was active in four sessions in which it captured the said gain on Monday, while it closed unchanged in the subsequent sessions, despite hitting a weekly intra-low of €2.35. Volumes dwindled to 52,301 shares which were traded over 22 deals.
On the contrary, selling pressure was re-applied over HSBC Bank Malta plc shares as the bank’s equity registered a further decline of 1.5 per cent, thus recording a 6.3 per cent loss over the past three consecutive weeks. The equity experienced a weekly turnover of 34,884 shares which were executed over 15 trades to end the week at a 13-month low of €2.58.
Meanwhile, the other active financials were Middlesea Insurance plc which shaved off 2.4 per cent from its share value to close the week at the €0.80 price level while FIMBank plc closed flat at $0.94 on low turnover.
On a positive note, from the hoteliers industry, both Island Hotels Group Holdings plc and International Hotels Investments plc closed the week on a higher note. The former surged exponentially by 17 per cent over 21 deals worth €48,578 to close at €0.82, while the latter inclined by 1.2 per cent to re-touch the €0.90 price level on 16,100 shares. Meanwhile, yesterday IHI announced its interim financial statements for the first six month ending June 30, 2013, in which the Group registered a loss after tax of €4.4 million despite a notable increase of five per cent in its revenues. However, one must highlight the fact that in spite of the said loss, the group saw an improvement of €5.3 million when compared to the loss of €9.7 million in the same comparable period last year.
From the aviation industry, Malta International Airport plc upheld its recent downward trend as the equity lurched lower by a further 3.6 per cent to close at €1.88, thus shaving off 10.5 per cent from its all-time highs of €2.10. The equity was active over 30,200 shares which were dealt over 16 transactions.
From the IT sector, Crimsonwing plc gained a minimal 0.1 per cent on Wednesday to close at €0.74 on high volumes, while RS2 Software plc declined by 1.2 per cent, despite surging by 3.3 per cent yesterday after the company disclosed the name of the European bank which will primarily acquire 10 per cent shareholding in RS2.
In fact, yesterday the company announced that an agreement has been reached between Barclays Bank plc and Information Technology Management (ITM), in which Barclays will acquire 4,250,000 shares in RS2 through ITM, thus amounting to 10 per cent of the issued share capital, at a pre-agreed price of €1.22 per share.
The transaction will solely materialise upon certain changes being made in the company’s Memorandum and Articles of Association, among which a representation of Barclays on the Board of Directors. In addition, the company also announced that such agreement is part of a wider transaction for Barclays to acquire up to 20 per cent within RS2, through a combination of shares purchased under the agreement with ITM and otherwise from the Company’s shares listed on the Malta Stock Exchange.
The equity closed the week at €1.70 following a notable decline of 4.4 per cent on Tuesday.
From the beverage sector, Simonds Farsons Cisk plc gained 1.8 per cent on Tuesday to close at €2.80, while from the postal sectors, Maltapost plc slipped by 1.5 per cent over a mere 886 shares to close at €1.00. Finally, the other non-movers for the week were Go plc and 6pm Holdings plc which closed flat at €1.60 and £0.601 respectively, on thin volumes.
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 info contact Jesmond Mizzi Financial Advisors Limited at 67, Level 3, South Street, Valletta, or on Tel: 2122 4410, or e-mail info@jesmondmizzi.com.