The Malta Stock Exchange (MSE) index continued to trend higher with a significant weekly gain of 2.23 per cent, closing on Friday at 4,435.974 points, a level last reached in May 2008. This positive performance was buoyed by solid gains in Medserv plc, Maltapost plc and International Hotel Investments plc, which more than offset the declines in GO plc, Bank of Valletta plc and Plaza Centres plc (PZC) shares.
Total trading volume stood at €1.41 million, a rise of 13.9 per cent, week-on-week. Out of the 16 traded equities, 10 advanced, while fallers and non-movers tallied at three.
Investors remained bullish in oil and gas logistics and services company Medserv as its share price rallied by 22.9 per cent after 23 deals of 51,137 shares to close at a fresh all-time high of €2.15. This followed the company’s declaration on October 30, after close of trading, of an interim dividend of €0.08 per share (amounting to €4 million) which will be paid to all shareholders on the company’s register as at close of business on that day, and the distribution of a bonus share issue of four shares for every five already held, to be issued on or around December 9.
Maltapost’s share price closed at a record high for the sixth consecutive week, at €1.99, up by 9.3 per cent, after three deals of 1,595 shares.
A turnover worth €50,000 was traded International Hotels Investment plc, thus pushing its share price 8.5 per cent higher to €0.846 – a four-and-a-half month high.
In the financial services sector, all the traded equities, except for BOV shares, recorded a strong performance during the week.
The share price of Fimbank plc advanced by 4.65 per cent to close at $0.45, as six deals of 34,390 shares were struck. In its interim directors’ statement the company announced that during the third quarter, the bank continued with its consolidation strategy and has adopted a prudent and practical risk approach to maintain a robust transactional structuring. Diversification in funding and a new core factoring strategy are being adopted as the company aims for sustainable profitability and growth, thus providing means to react to any changes in the financial markets. The group reported a positive net income for the third quarter and is now focusing on solid growth of its core operating businesses across the four lines: banking, forfaiting, factoring and treasury.
Mapfre Middlesea plc shares pared the previous week’s losses, as its share price rose by 3.8 per cent, to close at €2.20 as a single trade of a scant 796 shares was struck.
HSBC Bank Malta plc appreciated by 2.8 per cent on the week, to close at €1.85, after 20 deals of 59,443 shares. Similarly, Lombard Bank plc continued on an upward trend as its share price strengthened by 2.2 per cent to reach a four-year high of €2.30, as 6,791 shares changed hands in five deals.
Meanwhile, the share price of BOV closed in the red throughout the week’s five trading sessions, with the equity closing on Friday 0.8 per cent lower at €2.42 to partially erase the previous week’s 3.3 per cent gain, after the highest turnover for the week, worth €610,000.
In the IT services sector, RS2 Software plc shares added a further two per cent to the previous week’s 2.4 per cent increase, to close the trading week at an all-time high of €2.60, following six deals of 12,602 shares.
Malta International Airport plc (MIA) shares climbed one per cent to €3.90 – a seven week high – after the second highest turnover worth €201,000. Last Thursday, MIA reported that traffic in October saw the year’s highest monthly increase – up 10.2 per cent compared with October 2014. It reported a rise in passengers from all the airport’s top performing countries except Germany. The UK and Italy are its top two destinations. Cargo and mail also rose by 3.6 per cent on the month.
In the property sector, Tigné Mall plc shares recorded a slight gain of 0.5 per cent to close at €0.955 as the equity was active in two deals of 53,400 shares in the final hour prior to close of trading last Friday.
In its interim directors’ statement, the company announced that positive trends outlined in the condensed interim financial statements have continued throughout the third quarter, with healthy cash flows from operations and full occupancy of the mall; it added two new outlets to its brand mix, namely Calvin Klein Jeans and Boux Avenue. Moreover, profitability is up when compared with the corresponding period of 2014. Going forward, expectations remain positive.
Plaza Centres plc’s share price declined for the second consecutive week to close at €0.97, down by two per cent on the week. The equity was active in two deals of 50,000 shares.
A single deal of 5,000 shares was executed at €0.35 in Midi plc, thus leaving the equity unchanged for the week.
GO’s share price hit a weekly high of €3.24 and a low of €3.10, before settling at €3.20, thus closing three per cent lower on the week. The equity was traded in the week’s third highest turnover worth €151,000.
The week’s other non-movers were Grand Harbour Marina plc and Simonds Farsons Cisk plc, whic h closed the week at €1 and €6 respectively, after thin trading.
In the corporate bond market, out of the 24 traded issues, six gained ground, eight fell and 10 were unchanged. Total turnover amounted to €750,000, down 45.8 per cent from the previous week. The 4.5 per cent Hili Properties plc Unsecured € 2025 issue accounted for 50 per cent of the total turnover; it edged 0.5 per cent higher to €107.75.
In the sovereign debt market, total trading volume contracted from €9.88 million to €4.19 million, spread across 19 issues, of which all but two issues fell. This mirrored the trend across the broader European sovereign bond market as investors locked in gains following the recent pick-up in prices.
The highest liquidity was witnessed in the 2.3 per cent MGS 2029 (II) FI Oct 15 r issue, which traded in a turnover worth €1.8 million to close the week at €103.62. Meanwhile, the long-dated three per cent MGS 2040 (I) r issue headed the list of fallers, weakening by 2.5 per cent to close the week at €107.
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 1/2, St Joseph High Street, Ħamrun, or on Tel. 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.