Trading on the Malta Stock Exchange last week was mainly characterised by very volatile share prices and unusually high volumes, particularly for the smaller capitalised companies.
The MSE index climbed moderately last Monday but sellers took full control for the rest of the week with the index sliding 1.4% to 3,326.047 by Friday.
The index seems to be spiralling back down to its May lows, almost erasing all gains achieved this month.
Foreign equity markets further dampened local investors’ enthusiasm given the very volatile and generally downbeat global equity indices, despite a recovery last Friday.
Volume was a steady 415,120 shares, fairly evenly distributed among the 14 equities traded last week. Notwithstanding the fall in the index, six equities managed to close the week in positive territory.
However, seven other equities ended with losses and given their larger capitalisation, these companies provided a stronger downward pull on the overall local market. A single equity remained unchanged for the week.
The largest trading volume last week was for 6pm plc with 120,000 shares transacted over two sessions. This volume was also the highest for the past 12 months. Although initially the share price remained static at £0.30, it rose 6.7% in Thursday’s session to close the week at £0.32.
However, 6pm is still the worst performer on a year-to-date basis having shed nearly 40% of its value since January. Earlier last week the company announced it had subscribed to 25% of the issued share capital in Emcare 360 Ltd, a new company incorporated in Malta. This company engages in innovative strategies for health care delivery and intends to develop, implement and deliver electronic and mobile tele-health, tele-care and health care information services to private and public entities as well as to individuals both in Malta and overseas.
Trading in Bank of Valletta plc shares continues to be strong with nearly 80,000 shares changing hands throughout the past five sessions. Initially the share price climbed to €2.75 but selling pressure took over, gathering momentum as the week progressed. By the end of Friday’s session the share price had slid 5.1% lower to a new year-to-date low of €2.60, a staggering 19% lower than January.
Besides ongoing negative vibes from the global banking industry, part of this weekly fall was due to a company announcement issued last week. The statement announced that the Malta Financial Services Authority had notified BoV and Valletta Fund Management that it has imposed penalties totalling €347,816 in respect of a number of standard licence condition breaches relating to the La Valette Multi-Manager Property Fund. BoV and VFM said they would be filing an appeal as they disagree with the MFSA’s conclusions.
On the other hand, activity in HSBC Bank Malta plc shares was minimal. A mere 6,308 shares were exchanged, with the share price edging lower by 1.35% to close at €2.93.
RS2 Software plc saw strong volumes yet again last week with nearly 70,000 shares changing hands. This hefty volume was backed by a strong increase in the share price, which soared by 6.2% to end the week at €0.53.
Last week’s performance sees RS2 plc gain first place in the local year-to-date performance index with the equity having climbed more than 10% since early January. It is worth mentioning, however, that this gain follows very significant falls last year.
Last week RS2 announced that during the AGM held on Tuesday, the shareholders approved the net final dividend of €0.032 per share as recommended by the directors. It was subsequently paid on Wednesday.
Last week 23,700 Malta International Airport plc shares were exchanged, with the share price sagging by a mere 0.6%. Similarly, Go plc’s share price ended the week 0.4% lower following some intra-week price volatility. Nearly 20,000 shares were traded.
There were similar amounts of trading in Fimbank plc and Crimsonwing plc shares yet with different results; the former gained 2.5% while the latter fell 5.15%.
Midi plc shares climbed 1.15% last week with trading volume hitting an unusually high 30,000 shares. The share prices of Maltapost plc and Plaza Centres plc both increased in value yet volume was moderate to low. Maltapost’s share price rose by 2.94% while Plaza jumped by 5.3%.
International Hotels Investments plc’s share price remained unchanged while Santumas Holdings’s fell by 2.6%, both on minimal volume.
Last week trading in local corporate bonds was hefty, with a total value of just over €706,000 spread over various bonds. Price movements were generally mixed to positive. The 4.82% weekly gain in the 7.15% Mediterranean Investments Holding maturing between 2015 and 2017 is worth highlighting. Other price movements were moderate.
The Malta government bond market remains very jittery with directionless prices and intra-week volatility mimicking the overall markets, particularly in Europe. As equity markets zig-zagged between positive and negative territories, benchmark German government bonds (bunds) saw their prices rise and fall as risk preference waned or reappeared.
Such erratic movements could be a possible indication of a limit being reached in risky equity markets after several weeks of declines and a peak in safe government bond prices. Uncertainty is still on the high side overall.
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.