The local equity market saw some nervousness over the past week with the Malta Stock Exchange index swinging higher and lower to end the week moderately higher at 3,344.720.
This performance was partly influenced by the sharp volatility in Bank of Valletta plc’s share price and also by the overall uneasiness in most European equity indices that somewhat had a knock-on effect on the local market.
Global equities spent most of the week in choppy waters, primarily due to the serious concerns surrounding Greek sovereign debt. Furthermore, negative vibes emanating from US economic data worsened investors’ edginess.
Trading volume on the local exchange surpassed the 300,000-share mark yet more than half this trading was concentrated solely in BoV equities. The remaining trades were spread quite evenly among the remaining 12 stocks.
Six equities climbed higher last week while four saw their share price edge slightly lower. Two equities kept their share price unchanged.
The lion’s share of trading on the MSE was concentrated on Bank of Valletta plc equities, with a total of 152,189 shares changing ownership mostly during the first three sessions of the week. Following a relatively calm start, Tuesday saw significant volume supporting a share price rally of 5.36%.
However this gain was erased just as quickly the following day but on slightly lower volume. The volatility persisted till Thursday with the share price spiking higher again to reach €2.70 at which it closed the week.
Overall, BoV’s share price improved 3.85% last week. Clearly the week’s performance reflects a conflict between buyers who deem the share price to have potential value at these cheaper levels and sellers who are still uneasy due to the latest developments over the La Valette Multi-Manager Property Fund.
By contrast, HSBC Bank Malta plc attracted minimal attention last week. Only 17,559 shares were traded, with the share price gradually losing value. HSBC’s share price shed 1.02% last week reaching a low of €2.90 by Friday’s session.
Trading volume was steady in International Hotel Investment plc last week, reaching nearly 32,000 shares exchanged in three sessions. However the share price remained unchanged at €0.82, a level which has not been breached for nearly all June.
Go plc’s share price was also quite jumpy last week but nevertheless closed on Friday with a positive trend. Although the share price fell to €1.34 by mid-week, it climbed steadily on Thursday and Friday to end the week at €1.38, a weekly improvement of 1.10%. Volume was encouraging, reaching nearly 31,000 shares.
Unusually high volume was also recorded in Crimsonwing plc, with 30,000 shares changing hands during Friday. These trades brought about a 1.43% climb in the share price to close the week at €0.355.
Malta International Airport plc’s share price fell by 1.16% last week mostly following a sharp sell-off on Wednesday which was partly reversed on Friday on higher volume. Overall, nearly 28,000 MIA shares were exchanged last week.
The remaining equities saw very moderate volumes last week. Maltapost plc retreated by 3.33%, with the share price hovering between €1 and €1.05, but ending the week at €1.015.
On the other hand, both Middlesea Insurance plc (MSI) and Plaza Centres plc gained in value last week, the former rising by 3% and the latter edging up by 0.56%. However, trading volumes were minimal.
Last week MSI announced that an agreement had been reached between Mapfre Internacional and Munich Re for the acquisition of the latter’s 19.9% shareholding in MSI, whereby Mapfre Internacional will increase its shareholding to 50.8%.
Both RS2 plc and Loqus Holdings plc’s share prices remained unchanged for the week, while Simonds Farsons Cisk plc declined by 2.3%.
The local corporate bond market was fairly stable last week. However, two bonds excelled last week, soaring significantly and undoing most of their losses suffered in previous months.
The 6.4% International Hotels Investments plc maturing in 2013 soared by 5.15% to end the week at €100. Similarly the 7.15% Mediterranean Investments Holdings plc maturing between 2015 and 2017 denominated in GBP climbed a sturdy 9.2% to close at £95.
Last week the board of directors of Mediterranean Bank announced the basis of acceptance for the issue of €5 milion 6.25% bonds maturing in 2015. Amounts subscribed exceeded the amount on offer.
Trading in Malta Government Bonds last week totalled only €1.4m, with prices once again flat to only moderately higher. Government bonds have remained fairly stable over a period of high uncertainty mostly in global equity markets.
Although prices of these investments generally tend to edge lower when interest rates are assumed to climb, the negativity surrounding risky markets and the subsequent rush to safety kept government bonds firm throughout the past several weeks.
This article, which was compiled by Jesmond Mizzi, joint managing director of Atlas JMFS Investment Services Ltd, 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 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. For further information contact Atlas JMFS at 67/3, South Street, Valletta, or on Tel: 2122 4410 or e-mail jesmond.mizzi@atlasjmfs.com.