Malta Stock Exchange (MSE) index last week snapped a six-week losing streak, following a wave of buying interest in banking equities – primarily Bank of Valletta plc (BOV) and Lombard Bank Malta plc shares – as well as shares of International Hotel Investments plc (IHI) and Malta International Airport plc (MIA). The index registered a gain of 1.06 per cent in a shorter trading week due to the public holiday on Monday.
Equity trading activity was spread over 13 issues, of which six rose in value, four lost ground, while three closed unchanged. Turnover shrank by over 50 per cent to €730,000 – of which €598,000 worth of trading was in the financial services sector.
BOV’s share price rebounded from its monthly lows reached during the previous trading week, as 76 deals of 210,862 shares lifted the banking equity’s price by 2.8 per cent. BOV shares were negotiated over the highest volume for the week – accounting for almost two-thirds of total turnover – to close at €2.26.
Similarly, Lombard partially recouped the previous week’s 11-month low of €1.66, as two deals of just 1,500 shares pushed the price up by 2.4 per cent, to settle at €1.70.
Despite ranking second in terms of volume with 50,260 shares, trading in HSBC Bank Malta plc left no impact on the equity’s price by the close of Friday’s session. HSBC’s share price fluctuated from a low of €2.36 to intra-week highs of €2.41, ending the week at €2.38.
Fimbank plc was the only banking equity to extend its recent losses, as its share price fell to USD 0.84 after three deals of 8,639 shares, which tallies its year-to-date loss to 14 per cent.
Fimbank shares turned ex-bonus last Friday, meaning that the bonus issue of one share for every 10 already owned recommended on March 11 will only apply to investors who parked in their investment interest by last Thursday.
On Wednesday, the company announced that Fimfactors, a wholly-owned factoring services subsidiary, confirmed that the share acquisition between Fimfactors and Punjab National Bank had been completed with effect from March 31 – through which Fimfactors has now increased its stake in Finance Solutions Private Ltd by 30 per cent, to 79 per cent. The acquisition forms part of Fimbank’s group strategy in achieving better synergy and control over India Factoring and Finance Solutions Private Ltd.
In the same line of business, Middlesea Insurance plc headed the list of gainers with a five per cent price appreciation, after one transaction of 2,100 shares – recouping a significant part of the previous week’s 8.6 per cent plunge.
There were two trades of 2,718 IHI shares last week. Most of the equity price gain that was registered on Tuesday was reversed in Friday’s session – in aggregate, the company’s share price recovered 1.7 per cent, following the previous week’s eight per cent contraction.
Continuing in their upward trend, MIA shares locked in a 2.2 per cent gain as 10,426 shares were exchanged in nine deals. On Friday, the company announced its traffic results for March. MIA registered its best ever figures for the first quarter for the year, following a continued growth of 5.7 per cent last month. Traffic increase from Libya (31.9 per cent), Germany (15.1 per cent), Italy (14.1 per cent) and France (7.7 per cent), more than compensated for the two per cent drop from the UK.
The week’s other gainer was Medserv plc, which closed up by 2.3 per cent – a three-month high – after a single deal of 760 shares. The company announced that the proposed net dividend of €0.024c per ordinary share is to be paid to all registered shareholders as at close of business on April 15, and is payable by not later than June 15.
Heading the list of fallers was Maltapost plc, which retreated by 2.6 per cent to €1.12 from its all-time high of €1.15. The postal services company saw 52,486 of its shares exchanged in two deals.
Similarly, Go plc shares extended their losses for the sixth week, to close at their two-month low of €1.95 after six deals of 4,580 shares.
The week’s other faller was the special purpose vehicle Malita Investments plc, whose shares shed 0.9 per cent to settle at a 10-week low of €0.535. There were four deals of 8,000 shares. Despite this fall the equity is still up 6.85 per cent year-to-date.
Shares of RS2 Software plc were traded in four deals of 12,000 shares, to close unchanged at its all-time high price of €2.43.
Midi plc was the other non-mover for the week. There were two deals of 13,950 shares.
In the corporate bond market, 17 issues were negotiated. Total turnover stood at €654,000 – a 23 per cent increase on a week-on-week basis. Out of the 17 traded issues, six slipped, one inched higher, while 10 closed unchanged. The most liquid bond was the recently issued Six per cent AX Investments plc euro 2024, accounting for more than 38 per cent of total turnover.
Meanwhile, on the sovereign debt front, activity was spread across 22 issues, most of which lost ground – as the European Central Bank kept its benchmark interest rate at 0.25 per cent – unchanged since November 2013. The long-dated 4.65 per cent MGS 2032 (I) represented more than 40 per cent of the total €5.6 million 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.