The Malta Stock Exchange (MSE) index moved higher for a second straight week, advancing by a further 1.7 per cent after the previous week’s 2.2 per cent gain. The outlook towards local equities remained positive as the MSE ended four sessions higher and only suffered a marginal decline on Thursday.
The two major banks boosted this positive sentiment as both closed the week on a high, while losses in a number of small caps had little impact on the broad index. The local equities index is now at 3,472.037 points.
Last week, activity in local equities was spread across 13 equities, of which five gained, seven closed lower, and Middlesea Insurance plc closed unchanged. In terms of turnover, Bank of Valletta plc (BOV) shares topped the list after demand for the equity had lost steam in recent weeks. This was followed by HSBC Bank Malta plc and Crimsonwing plc, as demand for these equities remained high.
Last Monday’s session was the last trading session for September and also marked the end of the third quarter. In September, local equities fell marginally by 0.5 per cent. This was the second month-on-month decline following a positive eight-month streak. September’s fall caused the MSE to close the third quarter almost flat at 3,418.297 points, though it is still nine per cent higher when compared to the same period last year.
HSBC shares topped the list of gainers last week as the equity soared 4.8 per cent higher, advancing by €0.12c to close at €2.625. The equity rose in four sessions and closed flat on Thursday. Nearly 60,000 shares were traded in 21 deals worth €153,000, down from almost €172,000 transacted the previous week.
BOV shares gained three per cent, or €0.069, as the share price fluctuated between a weekly low of €2.41 and a high of €2.479 to finally close at €2.469. The equity ended four sessions in positive territory and only lost some ground on Thursday. Over 75,000 shares were traded, up from 28,000 shares a week earlier.
The bank is expected to publish its full-year results by the end of October and will hold its annual general meeting on December 19. Since the beginning of the year the bank’s equity is up by nearly 14 per cent.
On the flip side, Medserv plc shares shed seven per cent, or €0.25, as one deal of 1,500 shares sent the equity’s price down to €3.25. Likewise, Grand Harbour Marina plc lost 5.3 per cent, managing a closing price of €1.799 after having traded at a weekly low of €1.74. Four transactions of 9,500 shares were recorded.
In the IT sector, Crimsonwing plc gained four per cent as the equity ended the week at €0.77. Over 108,000 shares changed hands in four deals.
RS2 Software plc shares also closed higher, yet the equity failed to reach the €2 level, a price it had touched the previous week. In fact, the IT equity closed at €1.98 after minimal price movements were witnessed throughout the week. Three deals worth €23,000 were executed.
On Wednesday, RS2 held its extraordinary general meeting whereby the resolutions to amend the company’s memorandum and articles of association were approved. Barclays Bank plc can now acquire a 10 per cent shareholding in RS2 from Information Technology Management, a major shareholder in RS2.
Among the large caps, Go plc shares lost 1.3 per cent as the equity failed to find upside momentum. Throughout the week, the equity hovered between a low of €1.45 and a high of €1.489 to finally settle at a closing price of €1.47. Fourteen deals of 25,000 shares were traded in four trading sessions.
International Hotel Investments plc (IHI) shares edged minimally lower to €0.859 as one thin trade was executed. Another single deal in Middlesea Insurance plc of 11,200 shares left the equity’s price flat at €0.85.
Malta International Airport plc (MIA) shares gained two per cent as the price of the airport operator’s equities returned to €1.96 after having traded at a weekly high of €1.98.
MIA shares, which were active in three trading sessions, moved higher on Wednesday and Thursday ahead of the traffic results announced on Friday. During September, passenger traffic increased by nearly 11 per cent over the same period last year, while year-to-date, passenger movements increased by nine per cent when compared to the same period last year.
Furthermore, on Friday, British Airways announced its return to Malta, offering daily flights to and from Gatwick with effect from March 30, 2014.
Maltapost plc shares lost nearly three per cent after no price movement was recorded a week earlier, while it gained 10 per cent two weeks ago. Two deals worth €8,000 were executed at €1.07.
Simonds Farsons Cisk plc shares closed one per cent lower at €2.75 in subdued trading despite the fact that on Monday and Tuesday, the equity traded with entitlement to the next interim dividend of €0.0333. This will be paid on October 18.
Meanwhile, Midi plc closed four per cent lower after two deals of 70,000 shares. The share price of the property development company is down by 13 per cent since January.
In the fixed-income market, yields on Malta Government Stocks remained rather mixed yet skewed to the upside as a number of stocks recorded lower prices. The short-dated 4.8 per cent MGS 2016 lost 23 basis points while the long-dated 4.5 per cent MGS 2028 FI May 13 shed 30 basis points and closed the week at €102. The running yield on this stock is 4.3 per cent. A total of €2.2 million was transacted in 63 deals.
The European Central Bank left its interest rate unchanged at 0.5 per cent as it awaits more robust economic data.
Despite closing the week lower, midweek, European equities gained as Silvio Berlusconi unexpectedly pledged support for Italian Prime Minister Enrico Letta. The news hit the market by surprise, and as a result, equities gained while the euro gained against the US dollar, as talks about the US government shutdown loomed over global markets.
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.