The Malta Stock Exchange Index (MSE) failed to maintain its previous gains as seven equities closed the week lower, having eased by 0.27 per cent on the week to 4,467.85 points. Gains recorded in the banking equities failed to offset significant declines in Malta Properties Company (MPC), Mapfre Middlesea plc and International Hotel Investments plc.
Total trading value amounted to €2.89m – a week-on-week decline of 25.2 per cent, spread across 15 equities as six traded higher and two stood unchanged.
It was a positive week for most of the traded banking equities as FIMBank plc shares rallied by another 11.1 per cent to notch its third double digit weekly gain, despite trading at a high of $ 0.70, a low of $0.56 and closing the week at $0.65 over 22 trades of 450,992 shares.
The share price of Lombard Bank Malta plc rose 5.8 per cent higher, to close the week at a four and a half year high of €2.38, as 20 deals of 150,779 shares were traded.
Bank of Valletta plc shares snapped their four week losing streak with a gain of 1.1 per cent to close at €2.295. The equity was traded over a turnover worth €507k. Meanwhile, its peer, HSBC Bank Malta plc shares were up by half a per cent, to close the trading week at €1.799, as 97,327 shares changed hands across 40 trades. It was a volatile week for this equity having traded at a high of €1.80 and a low of €1.75.
Among the list of gainers, Simonds Farsons Cisk plc shares reached a record high of €6.37, to appreciate by 2.7 per cent on the week as six deals of 34,602 shares were transacted.
In the property sector, Malita Investments plc more than recouped its previous 1.1 per cent decline as the equity closed the week 3.3 per cent higher at €0.95, as three trades of 22,182 shares were struck.
On the other hand, the share price of the recently listed Malta Properties Company plc (MPC) oscillated between a weekly high of €0.74 and a low of €0.50 to then settle at €0.56 during last Friday’s trading session , thus register a 22.2 per cent fall on the week. The equity recorded a turnover worth €359k.
In the same line of business, Tigne Mall plc shares weakened by 2.1 per cent to close the trading week at €0.94, over two deals of 24,584 shares, while MIDI plc traded unchanged at €0.365 following two trades of 30,130 shares.
The share price of the life assurance company, Mapfre Middlesea plc dipped by seven per cent to a five week low of €2.12 – closing in the red for the third consecutive week, over a thin volume of 4,934 shares, spread across six trades.
Meanwhile, a single deal of 12,000 shares in IHI dragged its share price lower to the €0.821 price level – down by three per cent on the week.
In the IT services sector, RS2 Software plc shares inched lower for the first time in seven weeks – dipping by 0.4 per cent to €3.087 as market interest peaked in the final hour of trading during last Friday’s trading session. The equity was active across 25 deals of 136,913 shares.
Elsewhere, the share price of the telecommunications company, GO plc declined by a further 1.7 per cent to a seven month low of €2.95, on 16 deals of 116,394 shares.
Similarly, the shares of the logistics and services company for oil and gas, Medserv plc extended their decline for the third consecutive week by 1.2 per cent to close at €2.10, on 10 trades of a minimal 11,050 shares. During the extraordinary general meeting held last Thursday, shareholders approved the acquisition of Middle East Tubular Services Limited, Middle East Tubular Services (Iraq) Limited and Middle East Tubular Services LLC, FZC. Moreover, shareholders also approved the increase of the authorised share capital of the company to €12million divided into 120 million shares of €0.10 each share and to authorise the board of directors to issue and allot the unissued equity securities in the Company up to the maximum amount set by the authorised share capital and to restrict or withdraw the statutory pre-emption rights of the Company’s shareholders for as long as the said board remains authorised to issue and allot equity securities in terms of this resolution.
The other non-mover for the week was Malta International Airport plc as the equity closed unchanged at €4.01 – €0.04 shy of its all-time high of €4.05, as 16 deals of 39,183 shares were negotiated.
Last Friday, MaltaPost plc announced that in its Preliminary Statement of Annual Results for the financial year ended September 30, 2015, the company achieved a profit before tax of €3.38m, compared to €2.74m registered in 2014. Revenue for the period under review amounted to €25.7m, an increase of 8.4 per cent over the same period in 2014. The board of directors has resolved to recommend for the approval at the annual general meeting the payment of a final net dividend payment of €0.04 per nominal €0.25 share, to be received as cash or new shares, at the discretion of shareholders. The attribution price of the said shares has been established at €1.80 per share.
On the corporate bond front, total turnover declined from €767k to €742k, spread across 25 issues, of which seven advanced, six declined and 12 remained unchanged. The 6% Island Hotels Group Holdings plc € 2024 issue gained 1.8 per cent to close the week at €111 while the 6.2% Mizzi Org. Fin. plc € 2016-2019 issue edged 1.8 per cent lower to €103.60, as four deals of 26,300 nominal were traded.
In the sovereign debt market, out of the 21 traded issues, 19 lost ground and two remained unchanged – with most of the losses occurring last Friday, as the measures announced by European Central Bank President Mario Draghi last Thursday fell short of market expectation. The ECB last Thursday extended its asset-purchase programme by six months and cut its deposit rate by 10 basis points to -0.30 per cent. Heading the list of fallers was the 3% MGS 2040 (I) r issue, having inched 2.8 per cent lower to €107.03. Total turnover amounted to €4.12m with 34.8 per cent recorded in the 2.3% MGS 2029 (II) issue, having closed the week at €105.1 - down by two per cent.
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, Hamrun or on Tel. 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.