Over the past holiday-shortened week, the Malta Stock Exchange (MSE) Index rebounded from the previous week’s marginal decline, ending the week up by 1.29 per cent at 3,806.222 points – the highest level reached since mid-February of 2013.
The index closed the first quarter of the year up by 13.36 per cent, mainly attributable to the 9.3 per cent gain registered in March.
Financial services companies, which account for over 54 per cent of the index’s aggregate value, were last week’s major contributors to the index’s performance – with the largest gains observed across shares of HSBC Bank Malta plc (HSBC) and FIMBank plc. To a lesser extent, advances in the share price of International Hotel Investments plc (IHI), Malita Investments plc, and MaltaPost plc also enhanced the index’s overall performance – which in total account for just under 14 of the index’s total value.
Activity was spread over a total of 15 equities, of which nine gained in value, whereas fallers and non-movers tallied at three. Total trading value shrunk by half to €1.21 million, with 41 per cent having being dealt across shares of Malta International Airport plc (MIA) and Go plc.
In the banking industry, BOV shares closed the week at their weekly high of €2.39, as 28 trades of 69,483 shares were executed. This equates to a week-on-week gain of 1.7 per cent. After close of trading last Friday, the company announced that legal proceedings have been instituted against it before an Italian court in terms of which the Bank is being requested to pay an amount equivalent to the value of the shares of a company which had been settled on trust with the Bank as Trustee in 2009 and which value the plaintiffs are alleging amounts to €363 million, or such other amount as the plaintiffs have requested the court to liquidate.
On the basis of a legal opinion received, the board of directors, having given the matter due consideration, has resolved to reject the claims made against it and has also decided that in the circumstances there is no justifiable reason for the Bank to make any provisions against the claim.
Its peer, HSBC, ended the week at their eight-month high of €2.10, following 21 trades worth €178k, whereas four deals of 20,261 shares pushed the share price of Lombard Bank plc up by 2.1 per cent, to close at its one-month high of €1.95.
Second to none was FIMBank plc, recorded a further appreciation in price of 6.4 per cent, having locked-in a 9.3 per cent gain the previous week. The banking equity was traded over five transactions of 10,503 shares by Wednesday’s closing session, which marked the last day of trading during which investors could participate in the recently announced bonus issue of one share for every 10 already owned.
In the same line of business, Middlesea Insurance plc retouched the €1.16 price level, albeit on a relatively thin volume, worth €7.6k.
Go plc shares opened the week up by 0.9 per cent to €2.88, to then dip by one per cent, as Monday was investors’ last opportunity to participate in the company’s next dividend payment of €0.07 (net) per share. The telecommunications company closed the week lower at €2.85.
Shares of IHI, were active over four trades of 11,175 shares, all of which were executed at the €0.71 price level – a weekly gain of 1.4 per cent. On Wednesday, the company published its year-end results for the period ended December 31, 2014, in which a 5.9 per cent decline in revenue was recorded. Meanwhile, a loss after tax of €16.29 million was recorded, when compared to an after-tax profit of €266k in 2013 – resulting into a loss per share of €0.03.
Elsewhere, Grand Harbour Marina plc shares climbed by 1.1 per cent, to close the week at their 20-month high of €1.90. In its annual audited results for the financial year ended December 31, 2014 published last week, the group recorded an 8.3 per cent increase in revenue, from €3.145 million in 2013 to €3.404 million in 2014. Profit before tax stood at €342k, as opposed to a €12.4k loss registered the year before. Earnings per share increased to €0.02.
The other gainers for the week were MaltaPost plc and Malita Investments plc, whose shares put on 0.6 per cent and 1.1 per cent, respectively. The postal services company closed at its all-time high of €1.42 over a single deal of a mere 468 shares, whereas the special purpose vehicle closed the week €0.01 shy of its record closing price of €0.95, over a total trading value of €106k.
Midi plc shares headed the list of fallers, retreating by 3.6 per cent on six trades of 146,800 shares, while MIA shares shed 0.1 per cent over the highest turnover for the week worth €272.8k – after failing to sustain an intra-week high of €3.451. Last Thursday afternoon, MIA published its traffic results covering the month of March, indicating yet another year-on-year increase of 4.5 per cent, as more than 275,000 passengers were hosted. The UK and the Italian markets were two of the main contributors to such an increase, followed by France. A remarkable 74.4 per cent jump in traffic coming from Turkey was recorded when compared to 2014.
The non-movers for the week were Plaza Centres plc, RS2 Software plc, and Medserv plc. The latter was traded over a total trading value of €140k.
In the corporate bond market, out of the 17 traded issues, nine closed in positive territory, three fell out of favour, while five closed unchanged. Turnover totalled €288.6k, when compared to the €1.17 million recorded the previous week. Strong gains recorded across the 4.25% Bank of Valletta plc € Notes 2019 and the 5.1% PTL Holdings plc Unsecured €2,024 issues were up by one per cent and 0.9 per cent, respectively. At a price of €106.01.
Meanwhile, on the sovereign debt front, turnover decreased from €47.12 million to €7.63 million, of which 61 per cent was dealt in the recently issued 3% MGS 2040. Losses were only observed across those issues nearing maturity. The largest gains were registered in those bonds with the longest date to maturity – particularly the 5.1% MGS 2029 (I) and the 4.1% MGS 2034 (I) r which were both up by 2.3 per cent, while the 3% MGS 2040 (I) r ticked two per cent higher to €118.40.
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 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 at 1 / 2 St. Joseph High Street, Hamrun or on Tel: 21224410 or email jesmond.mizzi@jesmondmizzi.com.