The Malta Stock Exchange (MSE) index rose 0.3 per cent to extend its week-on-week gains to three straight weeks, and on Friday the index closed in positive territory for the sixth consecutive session. No large caps posted major gains while banking equities traded sideways.
Among the gainers was Plaza Centres plc, which headed the list with a seven per cent gain, followed by Middlesea Insurance plc. Malta International Airport plc (MIA) shares also closed higher to reach a new all-time high, while three equities lead by Maltapost plc closed in negative territory.
In value terms, Bank of Valletta plc (BOV) was the most liquid equity with over €600,000 traded during the week’s five sessions, nearly three times as much as the value traded in Go plc, the second most active. Throughout the week a total of €1.1 million was traded in 14 equities.
In the fixed-income market, turnover reached €5.8 million. There was unusually brisk trading in the corporate bond market as bonds issued by banks took centre stage. In fact, a total of €1.2 million out of a total of €1.4 million was traded in banking bond issues. The 4.8 per cent BOV 2020 was the most traded issue, followed by the 5.9 per cent HSBC 2018 bond issue.
Abroad, equity markets took some respite after a torrid close the previous week. Early in the week the focus was on China, which reported a 14 per cent increase in imports. The positive data highlighted that consumer demand is picking up, which is seen as an important factor to stabilise the economy, which in turn will rely less heavily on foreign demand or exports.
As a result, sentiment improved and risky assets headed higher while safe currencies declined. The euro reached a one-month high against the safer US dollar and a two-week high against the Sterling.
As the week unfolded, investors’ attention turned to the US again as weekly unemployment claims fell. The news was welcomed by international markets after fear that the US jobs market was slowing down, following the previous week’s worse than expected data.
However, late on Thursday, sentiment took a hit after comments released by an official of the Federal Reserve who said that the Fed should exit its quantitative easing programme by the end of the year. As the news hit the wire, equity markets fell and the US dollar gained some ground against the euro. But over the week, global equity markets registered strong gains and gold fell below $1,500 an ounce.
Back to local equities, MIA shares gained two per cent, or €0.039, as the equity ended the week at €1.939. MIA closed flat in the opening three sessions but demand picked up in the last two sessions and soared on Friday. Throughout the week, a total of 55,300 shares changed hands in 19 deals. Since January, the equity has gained nearly eight per cent.
Excluding BOV, the other listed banking shares had a quiet week as investors stayed on the sidelines. None of the active equities gained, while BOV edged minimally higher to close at €2.251 after touching a high of €2.27. A total of 269,000 bank shares were traded in 67 deals.
BOV announced that the board of directors is due to meet on April 25 to consider and approve the group’s and the bank’s interim financial statements for the six months ended March 31, and to consider the declaration of an interim dividend.
HSBC Bank Malta plc closed unchanged at €2.74 after 12 deals worth €48,000 in the week’s opening and closing sessions. Fimbank plc ended the week at $0.99.
Lombard Bank plc shares traded flat at €2 after two transactions of 20,000 shares. The bank announced that its annual general meeting (AGM) will be held on April 25. Among the ordinary resolutions is the approval of a final gross dividend of €0.12 per share. Moreover, the board is seeking the approval of a bonus share issue of one share for every 10 shares held, to be allotted to registered shareholders as at close of trading on May 27.
Middlesea Insurance plc gained 4.7 per cent, or €0.04. The equity’s price now stands at €0.90, a 21.6 per cent gain since January. Last week, a total of 25,400 shares were traded over eight deals.
Go plc shares gained 0.6 per cent to close at €1.58. The equity recorded similar gains in the opening three sessions, closed flat on Thursday, while it edged minimally lower on Friday. Over 119,000 shares were traded, most of which were executed in the week’s last two sessions.
In the IT sector, RS2 Software plc failed to break through the psychologically significant €1 level as 11 deals of 70,000 shares were traded.
Meanwhile, 6PM Holdings plc announced on Tuesday that its board of directors is to meet tomorrow to consider and approve the company’s audited financial statements for the year ended December 31, 2012, and to consider the declaration of a dividend to be recommended to the company’s AGM.
Maltapost plc shares lost two per cent to close at €1.02 as two trades were executed. Insignificant trading in Island Hotels Group plc sent the equity 0.8 per cent lower.
Malita Investments plc edged marginally lower to end the week at €0.509. Mid-week the company held its first AGM where all ordinary resolutions on the agenda were approved. A gross dividend of €0.0243 was paid last Friday.
Last Friday, Tigné Mall plc announced that there had been a strong response by institutional investors and Midi plc shareholders at the pre-placement stage of the company’s share offer. The combined offering consisted of a pre-placement of 42.4 million ordinary shares (equivalent to €21.2 million) and an offer to the public of 14 million ordinary shares (equivalent to €7 million).
The pre-placement phase closed on Friday and has been oversubscribed. The volume of shares taken up on the pre-placement means that all shares on sale by Midi have been taken up, and Midi will no longer remain a shareholder in Tigné Mall plc. The public offer opens tomorrow.
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: 21224410 or e-mail jesmond.mizzi@jesmondmizzi.com.