The Malta Stock Exchange (MSE) Index ended the holiday-shortened week flat at 3,492.708 points. The main headliners for the week were I.T. stocks with RS2 Software plc touching a new all time record high, followed by Crimsonwing plc which extended its recent exponential climb for the fourth consecutive week. Similarly, from the financial front, both Bank of Valletta plc (BOV) and Lombard Bank plc sustained their recent renewed buying interest, while FIMBank plc on the contrary, got hammered following the negative financial results for the first six months of 2013.
Following recent dwindling volumes, high turnover re-emerged as total trading volume for the week was sighted at 796,548 shares which were traded over 14 equities. Investors’ enthusiasm prevailed, as out of the 14 active stocks, seven garnered investors support, six declined, while Medserv plc was the sole non-mover for the week, as the logistics operator hooked itself at the €3.70 price level.
Meanwhile, in the domestic sovereign front, investors continued to shy away as yields rose due to the fall in prices. In fact, investors dumped safer havens and shifted towards riskier positions following this week’s news that the euro zone area has shifted out of recession. Total turnover reached just over €10.6m traded over 16 issues.
In the fixed-income corporate front, 18 issues were active over a total of 496,589 nominal. Meanwhile, on Wednesday Medserv plc announced that it was granted approval by the listing authority to list €20m secured and guaranteed notes. Additional information will be available in due course through another company announcement.
As previously stated, in the equity segment, I.T. software equities upheld their recent upbeat tone as investors displayed conviction towards the recent positive financial results. RS2 Software plc upheld its front lining position by locking an impressive 28.2 per cent appreciation over three sessions to close at €1.73, after touching new highs of €1.75. Meanwhile, on Tuesday the company announced its financial statements for the first six months of 2013, in which it stated that the group registered a net profit of €3.6m. In addition, due to the continuous business development and substantial investment in infrastructure, the board of directors did not recommend an interim dividend.
Similarly, Crimsonwing plc shares continued to test new highs by gathering a further advancement of 1.4 per cent, thus registering a notable 25.3 per cent gain over the past four subsequent weeks. The equity was active over 63,500 shares to close at €0.74, after touching intra-week new highs of €0.75.
On the same encouraging note, BOV shares locked a further 0.8 per cent appreciation despite heading lower in two sessions. In fact, the banking equity showed impetus on Monday by registering a 2.5 per cent increase where it reached the €2.45 price level, which was consequently trimmed-off by a 1.6 per cent decline in the following sessions. The equity traded 71,911 shares to end the week at €2.41.
Likewise, Lombard Bank plc gained 0.5 per cent to close at €1.91, while FIMBank plc plummeted by just below five per cent to close at $0.951. On Tuesday the bank released its financial statements, in which it registered a loss of $6.98m, when compared to a profit of $4.55m in 2012. Despite the group’s net operating results having improved by 12.5 per cent, the said incurred loss was contributed by impairment and trading assets losses.
Meanwhile, the other active banking equity was HSBC Bank Malta plc which declined by 2.2 per cent, a depreciation which reflects the equity having turned ex-dividend. In fact the bulk of trading took place last Monday when investors were last entitled to receive the net interim dividend of €0.065 which will be paid on September 5, 2013. The equity was active over 14 trades of 103,760 shares to close at €2.69.
In the telecommunications sector, GO plc re-tracked the green line following two consecutive weeks of losses. The equity rose by 1.5 per cent on Tuesday following the announced interim financial statements. The group registered a profit before tax of €8.2m when compared to the €20.4m recorded in 2012. However, one must reckon the fact that in 2012 GO plc had a one-off sale transaction of a plot of land in Qawra for a value of €13.8m. A total of 6,210 shares changed hands over seven deals to end the week at €1.645.
Meanwhile, the other gainers for the week were Maltapost plc and Malita Investments plc. The former gained 0.5 per cent on Tuesday to close at the €1.015 price level, while the latter captured a 0.8 per cent appreciation over 25,000 shares to touch the €0.524 value. Meanwhile, during the week Malita plc announced its financial results for the first six months of 2013, in which it stated that results are in line with the projections presented in the prospectus dated July 2, 2012, with the exception of a fair value movement of €4.1m, resulting from a review discount rate. In addition, a net interim dividend payment of €0.00959 will be paid to all shareholders on the company’s registrar as at Wednesday, August 21, 2013.
Conversely, from the hotelier’s sector both Island Hotel Group Holdings plc and International Hotels Investments plc shifted towards a bearish mode. The former plunged by 5.8 per cent on Monday to close at €0.65, while the latter shaved-off a minimal 0.1 per cent over a mere of 500 shares to close the week at €0.889.
Finally, the other loser for the week was Simonds Farsons Cisk plc which declined by 1.8 per cent to re-move towards the €2.75 price position.
This article which was compiled by Jesmond Mizzi Financial Advisors Limited, 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 is 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 Financial Advisors Limited at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email info@jesmondmizzi.com