Last week, the four-week winning streak of the Malta Stock Exchange index was halted as selling pressure on most equities led to a 0.95 per cent drop to close at 3,684.305 points, completely erasing all gains registered so far this year. Banking sector stocks dragged the index lower, with Fimbank plc shares closing at a new low, followed by a fall in HSBC Bank Malta plc’s share price. There were also big losses in Middlesea Insurance plc and Simonds Farsons Cisk plc (SFC).

The only two positive stocks last week were Go plc, which closed at a multi-year high, and Island Hotels Group Holdings plc (IHG), which soared in value after the company’s positive announcements last week.

Last Thursday, the Treasury an­nounced the prices for the new Malta Government Stocks, all of which are to be offered above par. The 4.45 per cent MGS 2032 and the 3.3 per cent MGS 2024 were both set at €100.25, representing a yield to maturity of 4.43 per cent and 3.272 per cent respectively, while the 3.2 per cent MGS 2019 (V) FI was set at €105.5, representing a yield to maturity of 2.119 per cent. Applications to the public open tomorrow and close on Wednesday or earlier at the Accountant General’s discretion.

Equity market activity was spread over 13 issues, of which eight fell, two rose, while another three closed unchanged. Turnover was in line with the previous week, at €696,000.

Last week’s top performer was IHG, as its shares rallied 5.6 per cent after five deals of 16,799 shares – its sharpest weekly price rise since last September. This followed the company’s mid-week announcement that through its joint venture with Buttigieg Holdings Ltd, it has won a tender to develop 75 Costa Coffee shops on the east coast of Spain, the Balearic Islands and the Canary Islands over the next five years. This is the group’s first opportunity to widen its operations and expertise into the international market.

IHI also announced that it had entered into a promise of sale agreement for its holding in Coastline Hotel Ltd to Claret Holdings Ltd. The gross sale is expected to be worth €14 million, and concluded by April 25. IHG also agreed to supply the Coastline Hotel with food and beverage services for five years starting on the date of the share transfer.

On Friday afternoon, IHG also announced that its board of directors had approved the audited financial statements for the financial year ending October 31, 2013. The financial statements are to be submitted for approval of the shareholders at the forthcoming annual general meeting on May 21. The group made a pre-tax profit of €445,025, compared to a loss of €834,156 in 2012. Revenue for the period under review amoun­ted to €35 milllion, a 6.63 per cent rise from 2012. The board recommends that no dividend payment be made.

Trading in Go plc shares led to further gains, as 41,200 shares traded in 25 deals pushed the price one per cent up to a 44-month high.

RS2 Software plc shares failed to sustain their all-time high closing price of €2.365, after 11 deals of 32,910 shares resulted in a 0.1 per cent fall in price. On Thursday, the company announced it had signed a licence agreement with OKQ8, one of Sweden’s largest fuel companies, for an indefinite period. RS2 will receive a monthly fixed fee for granting it the use of the Bank­works system, RS2’s payment solution. Crimsonwing plc closed un­changed after six deals of 54,512 shares.

Malita Investments plc retreated from its all-time high reached the previous week, closing down 0.9 per cent on five deals of 22,170 shares. The company announced that its board of directors is due to meet on Tuesday to consider and approve the company’s audited financial statements for the year ended December 31, 2013, and the possibility of declaring a final dividend to be recommended at the company’s annual general meeting on April 9.

Fimbank plc announced on Thursday that Fimfactors, a wholly-owned subsidiary of the bank, which serves as a corporate vehicle for the bank’s holdings of factoring joint ventures and associated companies, has completed the share acquisition in CIS Factors Holding BV, effective from February 18, 2014. Fimfactors has now acquired an additional 40 per cent to its previously owned 40 per cent. This acquisition forms part of the group’s strategy to further develop and strengthen its international network in the factoring business. Meanwhile, last week there were two deals of 3,095 Fimbank shares, resulting in a 3.2 per cent fall – a 14-month low. On March 11, the bank an­nounces its financial results for the year ending December 31.

HSBC’s share price lost all its recent gains, as 39,290 shares changed hands in 30 deals, shedding €0.05 off the equity’s price. Tomorrow, HSBC will announce its full-year financial results for the year ending December 31.

Bank of Valletta plc (BOV) reversed its previous week’s gain of 0.8 per cent to close at €2.46 over the week’s highest turnover worth €246,500. A single deal of 3,000 Lombard Bank plc shares left the equity’s price unchanged at €1.85.

Middlesea Insurance plc was last week’s worst performing equity, plummeting by 6.3 per cent on four deals of 11,708 shares.

SFC shares retreated from their all-time high of €3, after nine deals of 11,398 shares were struck – dragging its price down 1.7 per cent. Last Friday, SFC announced the appro­val of a € 27 million investment in a new beer packaging facility. Construction starts in April and will be completed in two years’ time. The project will help the group increase exports of beer and non-alcoholic products to nearby markets.

Malta International Airport plc fell for the third consecutive week to a two-month low, after 14 deals of 25,745 shares.

International Hotel Investments plc’s share price was unchanged.

Loqus Holdings plc’s board of directors will meet on Wednesday to consider and approve the company’s half-yearly report for the six months ending December 31, 2013.

In the corporate bond market, activity was spread over 21 issues. Nine closed in the red, one rose in value, while 11 closed unchanged. Turnover fell 77 per cent, as much of investors’ interest shifted onto the sovereign debt market – where volumes soared to €22.9 million.

Of the 24 active government bonds, 13 fell, eight inched higher, while three closed unchanged. Trading in the 4.65 per cent MGS 2032 accounted for almost a third of total trading value. The issue advanced by a minimal 0.1 per cent, following the new issuance with a similar term to maturity, but offering a lower coupon of 4.45 per cent.

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: 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.