The Malta Stock Exchange (MSE) index kicked off the month of February on a positive note, despite the dominance by falling equities on the index.
The MSE notched 0.35 per cent higher, primarily as a result of strong gains in Go plc shares – at a 43-month high – followed by substantial advances in HSBC Bank Malta plc and RS2 Software plc. On the other hand, trading in Bank of Valletta plc (BOV), Fimbank plc and Middlesea Insurance plc (MSI) hindered the index from reaching even higher ground.
Activity in the more volatile market fell by 17 per cent, as 16 equities were traded over a total turnover of €1.11 million. Five equities outperformed the index, whereas seven fell out of favour and four closed unchanged.
The best performing equity last week was Go, as its share price surged by five per cent after 25 deals of 73,291 shares. The equity settled at €1.98 – a price last seen in June 2010.
In the banking sector, there were two gainers and two losers. Trading in this sector accounted for 59 per cent of total trading value.
Lombard Bank plc headed the list of gainers, completely reversing its previous week’s loss of 2.1 per cent after seven trades of 100,846 shares.
Trading in HSBC shares pushed its price 1.6 per cent higher – moving back to its 2013 closing price – after failing to sustain a weekly high of €2.63. There were 24 deals of 55,008 shares in the banking equity.
Interest in HSBC shares seems to be increasing as investors await the 2013 financial results which will be announced later this month.
On the contrary, BOV shares closed down by another 0.8 per cent after €318,000 worth of trading – the highest turnover of the week. Trading in BOV hovered between €2.44 and €2.47.
Meanwhile, Fimbank erased its previous week’s gain of 3.2 per cent, closing at $0.95 after two deals of 3,645 shares were struck.
MSI shed €0.02 off its share price, which retreated from its 30-month high of €1, following three deals of 2,952 shares.
In the IT sector, RS2 shares flirted with its all-time high price of €2.35, closing at €2.335. Trading value in the IT firm reached €103,000, representing more than nine per cent of total trading value.
Despite having a similar value of trading, there was no impact on the price of the other traded IT equity, Crimsonwing plc.
Last week’s top performing equity was Island Hotels Group Holdings plc, rallying by 5.9 per cent on a single deal of 2,000 shares. The equity had not traded in the previous two weeks.
On the other hand, Plaza Centres plc was the week’s worst performer, tumbling by five per cent, as 5,220 shares exchanged hands over a single deal.
Malta International Airport plc (MIA) shares closed down 0.45 per cent on 12 deals of 13,450 shares, as the company’s traffic results for January issued last Wednesday, failed to impress investors – despite hosting a total of 199,354 passengers during the month, an increase of 11.2 per cent over the same period last year.
Two other fallers for the week were Medserv plc and Maltapost plc. The latter declined by a further 1.8 per cent – after seven deals of 23,921 shares – whereas trading in Medserv eroded any remaining gains that had been registered so far in 2014, as a single deal of a mere 298 shares led to a 1.5 per cent fall in price.
Other non-movers for the week were Simonds Farsons Cisk plc, which remained at its all time-high of €2.95, Malita Investments plc, and Tigné Mall plc.
In the corporate bond market, turnover soared by 50 per cent to €673,000. Activity was spread across 23 issues, of which six advanced marginally, 10 dipped, while seven closed unchanged.
The 7.15 per cent Melita Capital plc euro 2014-2016 was the worst performing issue, as it fell by 1.2 per cent to €101.75.
Last week, further details were made available regarding the new bond issue by AX Investments plc. The bond issue is of €40 million, due on March 6, 2024, and will pay an annual coupon of six per cent.
Out of the estimated net proceeds of €39.3 million, €11.6 million will be used to finance the redemption of the maturing 6.7 per cent AX Investments plc Bonds 2014-2016; €21 million will be used to fund a new project – the Hilltop Gardens care home and residences, which is to be completed by 2016; while the remaining balance will be used for general corporate funding of the group, such as the repayment of certain outstanding loans.
Existing bond holders will have a priority to roll over their existing bond by not later than February 20. Meanwhile the pre-placement offer to financial intermediaries will take place on February 20.
The public offer will open on February 24, with a minimum application of €1,000 and multiples of €100 thereafter.
The prospectus, giving full details of the issue and the application forms are now available from authorised intermediaries. As always, investors should seek professional advice before considering any investment.
In the sovereign debt market, total turnover edged higher by 4.1 per cent to €8.2 million, with a total of 24 issues negotiated. Most of the 15 falling stocks were in issues with a shorter maturity, whereas longer-dated issues experienced mixed directions, as some rose in value while others lost ground.
The most liquid issue was the 4.5 per cent MGS 2028 (II), accounting for 21 per cent of total turnover.
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.