Last week both the local and global indices repeated the performances seen since the start of the year. Globally, equity markets sustained their gradual upward moves, with gains ranging from 1.5% to 4% while the Malta Stock Exchange index edged moderately lower yet again.
Since the start of the year, the vast majority of equities traded on the local exchange have lost value- Jesmond Mizzi
The main highlight on a international economic scene was the encouraging news coming from US where employment data indicates that unemployment in January fell to 8.3% – nearly a three-year low, and the economy generated an additional 243,000 jobs, which was far above expectations.
Sentiment was further buoyed by hopes that Greece is close to a debt reduction deal with private creditors, together with a new fiscal-discipline treaty by 25 European countries to be signed in March. In addition, overall hype regarding an important initial public offering over the coming months added on to the moderately positive mood.
Meanwhile, trading volume on the local exchange was on low, with little more than 160,000 shares exchanged throughout the week. Local investors continue to show a level of uncertainty and overall indecision which over the past month has contrasted sharply with investor sentiment both in Europe as well as globally. Since the start of the year, the vast majority of equities traded on the local exchange have lost value.
Trading was heaviest in Bank of Valletta plc (BoV) shares as just over 53,000 shares changed ownership throughout last week. Initially the share price gathered fell, only to reverse some of the losses by the end of the week. BoV closed the week at €2.21, or 1.8% lower than its opening price.
A total of 35,260 Malta International Airport plc shares were traded over the past week. The share price fluctuated between €1.70 and €1.75 at which it closed the week. This 0.6% improvement added on to the gains so far this year, which have now climbed to 3.6%.
Share price volatility remains the order of the day for Go plc. Initially the share price plunged by 5.6%, reaching a previous low of €0.85. The following day saw the share price reverse most the loss, climbing back up to €0.89 and closed 1.1% down for the week. Trading volume, however, remains on low, with only 24,500 shares changing hands.
Low volume was also the case for HSBC Bank Malta plc shares with barely 22,000 shares traded over the whole week. By Wednesday, the share price had lost nearly 0.8%. However, the last two days of the week saw the share price being upped to €2.57, therefore ending the week in positive territory.
This equity has remained flat so far this year, yet volume has been generally uninspiring week after week.
In a company statement last week HSBC announced that the board of directors is scheduled to meet on February 24 to consider and approve the group’s final audited accounts for the financial year ended December 31, 2011, as well as to consider the declaration of a final dividend. The board also announced that the forthcoming AGM will be held on April 18.
Lombard Bank plc shed 0.8% last week as the price fluctuated between €2.57 and €2.55, closing at the latter price. However, only 16,000 shares were traded. This financial equity has already slid 5.6% since the start of the year, therefore underperforming the local financial sector.
Both Maltapost plc and Middlesea Insurance plc (MSI) ended the week in the red, with Maltapost losing 4% while MSI declined by a mere 0.14%. However, trading in both stocks was a minimal 2,300 shares.
Low volume resulted in a 0.4% decline for Fimbank plc shares, while Simonds Farsons Cisk plc managed to close the week 1.7% higher.
Plaza Centres plc, Santumas Holdings plc and Island Hotels Group closed the week unchanged on minimal volume.
By contrast with the previous week, trading in local corporate bonds resulted in much less price volatility. However, one bond, the 7% Midi plc bond denominated in euro maturing between 2016 and 2018 improved by 2%.
Trading in Malta government bonds was once again very active last week, with trading volume surpassing €7.1 million in value despite the fact that investors’ attention was focused on the new issues.
Most MGS prices edged higher upon anticipations of lower European official interest rates. The best performing stock was the 5.5% MGS maturing in 2023, which reached €110.23, climbing by 0.7% during the week.
This article, which was compiled by Jesmond Mizzi, 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 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. For further information contact Atlas JMFS at 67/3, South Street, Valletta, or on Tel: 2122 4410 or e-mail jesmond.mizzi@atlasjmfs.com.