The Malta Stock Exchange Index returned to positive territory in May as the index gained 0.14% following three months of consecutive declines. However, the local stock market didn’t get off to a great start – beginning the month with very moderate losses which, coupled with those of the previous week, erased some of the gains achieved during mid-May.
The MSE index was dragged lower on Monday, subsequently reversing all losses by Thursday. However, Friday’s session saw a further dip with the index, which ended the week at 3,377.71, having shed 0.04% in all.
The weekly performance of local equities was somewhat similar to that of most international equity markets. Most equity indices have been flat to negative this year as investors’ mood continued to darken following disappointing data and continued worries particularly relating to European debt issues.
However, not all was doom and gloom. There were still pockets of positive performances, at least by five out of the 13 equities traded last week.
However, six other equities provided a drag on the overall market, with losses in some largely capitalised companies dampening the whole mood. Two equities remained unchanged.
Unlike previous weeks, share prices were highly volatile last week with occasional intra-week significant swings.
Worth highlighting is the pick-up in volume compared to the previous week, with nearly 450,000 shares exchanged in 152 deals. However, this volume was very erratically distributed, with a large proportion of the volume concentrated on four equities.
Nearly a fourth of all trading occurred in Go plc shares, with just over 130,270 shares traded mostly in Thursday’s session.
Notwithstanding the large volume of shares traded, share price volatility was very subdued. The price edged 0.66% higher, managing to at least support the higher prices achieved by the sudden rebound in May.
The second-most traded stock last week was Fimbank plc, with just over 125,000 equities exchanged in two trading sessions, mostly on Tuesday.
This hefty trading backed a significant drop in the equity’s share price, which slumped from $0.85 to $0.80, at which it closed on Friday.
Last week, Fimbank plc announced that the board of directors will meet on August 10 to consider and approve the consolidated financial statements for the half-year ended June 30, and consider the payment of an interim dividend, if any.
Bank of Valletta plc’s share price was also volatile throughout the week. Initially, the price spiralled 4% lower but this fall was reversed in subsequent trading days.
However, as days passed the gradual climb lacked conviction and trading volume waned. The stock retreated back into the red in Friday’s session to end the week 0.36% lower at €2.74.
A total of just over 87,000 BoV shares were traded last week.
An unusually high volume of trading and a volatile share price was also the case in Midi plc equities with just over 52,000 shares changing hands. The price fluctuated between €0.41 and €0.439 and ended the week 4.52% higher.
Last week’s performance therefore brought the year-to-date performance closer to positive territory following nearly two months of gradual declines.
Malta International Airport plc’s share price rose last week from €1.71 to €1.73 notwithstanding a slight dip initially. Last week’s performance has resulted in this equity edging closer to being the best performing equity on the MSE so far this year. MIA’s 4.2% climb since January outshines by far the 10.6% fall of the overall local index.
MIA announced last week that the board is due to meet on July 27 to consider and approve the company’s interim financial statements for the six months ending June 30, besides also considering the payment of an interim dividend.
Grand Harbour Marina plc managed to climb 0.66% higher last week after 20,000 shares changed ownership.
There was very moderate trading in the remaining equities. However, at times, these low volumes resulted in very drastic price movements. Island Hotels Group Holdings plc and Maltapost plc dropped by 5% while Middlesea Insurance plc fell by 3.8%. At best, volumes barely surpassed the 3,000 mark.
On the other hand, International Hotels Investments plc climbed by 3.75% on very meagre trading. HSBC Bank Malta plc fell by 1.2% last week on very unusually limited trading totaling 2,700 shares.
RS2 Software Plc and Simonds Farsons plc remained unchanged after minimal trading.
Last week, trading in local corporate bonds was slightly subdued. Just under €340,000 worth of trading was conducted. Corporate bond prices remained generally unchanged except for a strong rebound of between 5% and 7% in both the 6.25% International Hotels Investment plc euro bond maturing between 2015 and 2019, and the 7.15% Mediterranean Investments Holdings plc euro bond maturing between 2015 and 2017.
Local Government Stock prices were yet again fairly unchanged last week. However, the value traded nearly hit €5.3 million with hefty trading in the 5.7% MGS 2012 and the 7.8% MGS 2013.
Benchmark yields rose very modestly last week as most investors became uncomfortable with holding risky assets such as equities.
However, overall, benchmark government price movements were very much subdued given the overall lack of clarity regarding economic developments globally for the immediate short term.
This article, which was compiled by Jesmond Mizzi, joint managing director of Atlas JMFS Investment Services Ltd, does not intend to give investment advice and the contents therein should not be construed as such. Atlas JMFS is licensed to conduct investment services by the MFSA and a member firm of the Malta Stock Exchange. 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 Atlas JMFS at 67/3, South Street, Valletta, or on Tel: 2122 4410 or e-mail jesmond.mizzi@atlasjmfs.com.