The Malta Stock Exchange (MSE) index edged minimally higher for the first time in three weeks after sentiment was generally positive across all traded equities exception for two, as banks gained and Go plc continued to trade higher.
Last week saw the end of trading for the month of March during which the MSE index gained 1.2 per cent, thus trading higher for a fourth consecutive month. Go plc was the main contributor, after a sharp rise of nearly 14 per cent on the month, while Midi plc and Middlesea Insurance plc gained over eight per cent.
In the banking sector the two major banks fell during March while Lombard Bank plc’s share price returned to the €2 level with a 6.3 per cent gain for the month.
On a quarterly basis the local equity market maintained its positive stance having improved gained 3.5 per cent. During the first three months of the year 6PM Holdings plc gained an overwhelming 45 per cent while Go plc followed with a sharp 34 per cent gain.
Among the listed financial equities Fimbank plc topped the list with a 24 per cent rise while Middlesea Insurance plc gained 16 per cent.
Abroad, volatility remained as sensitivity to European news was evident. The outlook for Europe remains rather bleak while in the US, positive data helped to ease sentiment somewhat.
Cyprus remained in the limelight as its banks opened on Thursday for the first time in two weeks, but with heavy capital controls.
Comments by rating agency Fitch that it was reviewing Cypris’s credit rating of sovereign debt did not help much as the euro fell to a four-month low against the US dollar and French unemployment rose to a 16-year high while consumer confidence fell.
In the US, a report showed that economic growth slowed less than previously estimated while durable goods data improved. As a result, the S and P 500 US equity index managed to set a new record-closing high, having traded for most of the week close to the previous peak set in October 2007.
Back to the local market, Go plc shares posted a two per cent gain last week as the share price closed just shy of €1.60, after touching a weekly low of €1.54. Last week’s gain came on the back of significant trading volume as demand remained strong after the company’s full-year results for 2012 were published. The company also reinstated its dividend as the board of directors will be recommending a net dividend of €0.10 per share at the annual general meeting. A total of 261,000 shares were traded in 57 deals over the week’s four sessions.
Fimbank plc, the most active equity in terms of volume, traded unchanged at $0.99 as almost 280,000 shares were traded in six transactions. Meanwhile, Lombard Bank plc edged minimally higher to close at €2 after two thin trades were executed.
HSBC Bank Malta plc gained 0.6 per cent to close the week at €2.736 after trading at a weekly high of €2.75 which, however, it failed to maintain. On Monday, as demand surged the banking equity rose one per cent, but as demand fell, sellers had to accept lower bids. A total of over 168,000 shares were traded in the four trading sessions.
Once again, Bank of Valletta plc (BOV) shares failed to hold on to their weekly high of €2.299 as the share price returned to €2.25 in the final minutes of trading on Thursday. In the first quarter of 2013, BOV shares returned 3.5 per cent.
On the other hand, Middlesea Insurance plc jumped 7.5 per cent, or €0.06, to €0.86, albeit on insignificant trading value.
On Thursday, the company announced that at its next annual general meeting on April 19, a number of resolutions will be put forward for shareholders’ consideration, including the consideration and approval of the financial statements for the year ended December 31, 2012, and the declaration of a final gross dividend of €0.025 per share.
On the downside, International Hotel Investments plc shares lost almost two per cent as the equity closed the week at €0.775, while Plaza Centres plc shed 4.4 per cent to end the month at €0.55. The latter lost 8.3 per cent in the first quarter, while the hotels operator fell by 10 per cent. Midi plc shares remained almost flat at €0.315, but the equity gained 14.6 per cent over the first three months.
Malta International Airport plc (MIA) shares gained one per cent last week as the equity’s price closed at €1.86 after fluctuating between a weekly low of €1.82 and a high of €1.889 as over 100,000 shares were traded.
Meanwhile, in the IT sector, quarterly returns heavily outperformed the market. Besides the steep gain by 6PM Holdings plc, RS2 Software plc gained 24 per cent, while Crimsonwing plc gained 16 per cent. Last week Crimsonwing gained 5.5 per cent while RS2 gained 1.1 per cent on reasonable turnover.
Likewise, Maltapost plc shares gained two per cent last week to close at €1.04 while Malita Investments plc traded flat at €0.51.
Grand Harbour Marina plc announced that during 2012 the company registered a pre-tax profit of €1.37 million, which compares favourable to a loss of €520,000 a year earlier. The group’s revenue increased by almost 60 per cent to €7.8 million, up from €4.9 million in 2011, while operating expenses increased to €3.8 million, from €2.8 million. The directors approved a net dividend of €0.12 per share.
There were no trades throughout the week, while the equity has gained five per cent since the beginning of the year.
Finally, on Monday, Tigne Mall plc announced a combined offering of 56.4 million shares at €0.50 per share. The company also reported that MSV Life plc has undertaken to purchase 20 million shares of the said offer.
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.