As has been the case for most of the summer, trading on the Malta Stock Exchange was fairly uncertain throughout the past holiday-shortened week.
Indecisiveness therefore continues to reign, with minor share price movements for most of the largely capitalised equities and some volatility on the smaller equities, yet on very low or unimpressive volumes.
The MSE index continues to lose ground, albeit in a moderate fashion, slowly heading towards the yearly low reached back in July.
However, notwithstanding the week’s slightly negative performance overall, the mood swayed from negative to positive asthe week progressed, with the major banks providing a slight push.
The local index’s weak finish mimicked indices abroad, which recovered on Friday after seeming to have paused slightly following a very steady start to September.
On the local scene, trading volume was understandably on the low side given the mid-week holiday, with total trading falling slightly short of 200,000 shares. Fourteen equities were traded, yet only three ended the week in positive territory; six equities drifted lower, while the remaining five ended the week unchanged.
International Hotel Investments plc was last week’s most traded equity, with 62,550 shares changing hands over 19 deals spread between two trading sessions. However, the share price remained intact at €0.83. Trading in this stock seems to be gradually picking up in volume, particularly following increased trading in July. Although IHI’s year-to-date 3.75% gain is still somewhat subdued it is still outperforming when compared to the overall MSE index loss of 2.36%.
A certain pick-up in trading was also noticeable in Bank of Valletta plc shares, with trading volume surpassing 38,000 over four sessions. Although intra-week this equity’s share price remains quite jittery, it has managed to crawl up slightly for two consecutive weeks. The equity closed at €3.23, or 0.62% higher, therefore reclaiming some of its mid-summer losses.
Malta International Airport plc’s share price was highly volatile last week. MIA shares initially traded at €1.56 but subsequently succumbed to selling pressure, with the price closing on Friday at €1.521, 2.5% lower on the week. Despite MIA’s negative share price trend this summer, its year-to-date performance is still enjoying a very generous 26.75% gain.
HSBC Bank Malta plc continues to disappoint in terms of traded volumes as barely 14,000 shares changed hands last week. Initially, the share price tumbled to €2.801, only to resurface very quickly in subsequent trading sessions. HSBC shares actually managed to end the week in positive territory with the price closing Friday’s session at €2.855, or 0.53% higher on the week.
A single deal involving 19,000 Crimsonwing plc shares took place last week, with the price, however, remaining intact at €0.42. Similarly, the share prices of both Fimbank plc and Plaza Centres plc closed the week unchanged, both on moderate volume.
Light traded volume continues to negatively impact Go plc’s equity price which drifted lower by a further 2.65% last week to close at €1.84. However, total volume amounted to 9,000 shares throughout last week’s trading sessions.
Maltapost plc shares shed 5.56% and Middlesea Insurance plc shares lost 7% last week, both on very low volumes. However, these price movements lack solid backing, given the minimal amount of transactions. Both equities are still enjoying very attractive double-digit year-to-date gains.
Light trading also led to some losses in Simonds Farsons Cisk plc and Island Hotels Group’s share prices and a slight gain in Lombard Bank plc. Medserv plc, meanwhile, closed the week unchanged.
About €490,000 woth of trading in corporate bonds took place last week, a fourth of which was traded in the 4.8% Bank of Valletta Subordinated 2020 euro bond. Bond prices remained generally unchanged, yet a sharp 2.8% fall occurred in the 7% Midi GBP bond maturing between 2016 and 2018. This bond fell from last week’s £108 to close at £105.
Last week, Eden Finance plc announced details of its half-yearly financial report for the six months ending June 30. The company registered a net profit of €14,066. The directors do not anticipate significant changes in the performance during the second half of the year.
Interest in Malta Government Stocks re-ignited last week with nearly €9.4 million worth of MGSs changing hands over 193 deals. With equities world-wide pausing and overall market uncertainty resurfacing, benchmark government bond prices retraced some of the past weeks’ decline. Hence, most MGS prices performed well this week, particularly the highly volatile long-term issues. Although prices are well off their peaks, the improvement in most MGS prices stirred most investors into action, particularly crystallising profits.
No trading occurred in Treasury bills last week.
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 is 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.