The MSE Equity Total Return Index posted predominantly negative performances this week, ultimately drifting 0.85 per cent lower at 8,854.112 points, following the previous week’s loss. Activity was spread across 21 equities, of which ten fell and six gained ground. Investor participation was rather unimpressive, as a turnover of just €0.6 million was generated over 143 deals, even less than the previous week’s low figure of €0.9 million.
One of the main drivers of this performance was the banking sector, as the two largest equities both headed south. HSBC Bank Malta plc came under a spell of selling pressure, as it erased one month’s gains to return to a price of €1.75. The 2.78 per cent decline was the result of 16 trades, in which 54,141 shares were exchanged.
Its peer, Bank of Valletta plc (BOV) extended the previous week’s loss, as it posted another identical decline in price of €0.01, or 0.74 per cent, closing at €1.34. The equity was the most liquid, as 115,366 shares changed hands over 36 transactions.
On Thursday, Amalgamated Investments SICAV plc announced that the preliminary agreement entered into with UniCredit Spa for the acquisition of the latter’s shareholding in BOV has been automatically terminated. The reason given by the investment company was that conditions in the said agreement were not satisfied by the predetermined deadline of October 31, 2018.
In the same sector, FIMBank plc headed in the opposite direction, as it gained 0.66 per cent to close the week at €0.76. A substantial trading volume of 143,581 shares was exchanged over 13 deals.
On Thursday, telecommunications company GO plc published a circular explaining the Extraordinary General Meeting scheduled for December 3, 2018 regarding the listing of 49 per cent of GO’s shareholding in its wholly-owned subsidiary, BMIT Group plc. The Initial Public Offering is expected to be completed by the end of the first quarter of 2019.
The document explained that the rationale behind this sale of BMIT shares is to enhance management focus and improve governance of BMIT Group as well as raising its profile. The move will also allow the BMIT Group to access the Capital markets if appropriate, while also generating cash to GO plc, which shall create funds for distribution.
The unaudited interim consolidated financial statements of BMIT Technologies plc show a profit after tax of €2.5 million in the first six months of 2018, up by 19.6 per cent over the same period last year. This was partly the result of an 8.5 per cent increase in revenues to €10.7 million in the first half of 2018, over the previous year.
Over the course of the week, the equity recorded mixed performances, ultimately posting a modest gain of 0.5 per cent, closing at €4.00. A total of seven deals of a combined 4,273 shares were executed.
A single transaction of 2,550 International Hotel Investments plc shaved 3.17 per cent off the share price, down to €0.61.
Malta International Airport plc seems to have stabilized at the previous week’s closing price of €6.20, as all 14 transactions recorded over the week, were executed at this price. In total, 22,538 shares worth €138,736 changed ownership over 14 trades.
MaltaPost plc traded on slim volume, as just a couple of deals of 2,033 shares were concluded. The outcome was a 1.22 per cent decrease in value to a price of €1.62.
Mapfre Middlesea plc shares recovered the previous week’s marginal loss, as it appreciated by a minimal 0.52 per cent to €1.93. A total of 3,620 shares traded across three transactions.
Also, in the insurance sector, the share price of GlobalCapital plc persisted with a negative trend, as it drifted further by 4.96 per cent, to close at €0.268. The equity traded three times as 3,600 shares were exchanged.
One of the main drivers of this performance was the banking sector, as the two largest equities both headed south
RS2 Software plc bounced back from the previous week’s loss, as it recouped 1.79 per cent to recapture the €1.14 price level. A total of 9,645 shares traded across six transactions.
The best performer was Loqus Holdings plc as it hiked 23.97 per cent to reach a seven-week high €0.075. A total of 69,924 shares were transferred across seven deals.
Santumas Shareholdings plc closed unchanged at €1.41, as just two deals of 352 shares were struck.
In the food and beverage sector, Simonds Farsons Cisk plc traded flat at €8.00 over three deals of a combined 1,125 shares.
Retail conglomerate, PG plc was down by 1.45 per cent, to close at €1.36. A couple of deals of 4,540 shares were struck last week.
Medserv plc started the week with a turnover of €16,790 over three trades on Monday. The equity lost 3.77 per cent in value, to close at a two-month low of €1.02. No further deals were executed during the rest of the week.
In the property sector, Plaza Centres plc concluded the week with a strong session, as it rebounded from an earlier loss to post a gain of 0.97 per cent. The equity closed at €1.04, as four transactions of 6,500 shares were executed.
Similarly, Trident Estates plc enjoyed a strong week, as four transactions of a combined 5,333 shares pushed the equity upwards by 2.96 per cent, reaching a price of €1.39.
Conversely, MIDI plc returned to negative territory, as it declined 1.37 per cent in value to €0.72. Trading volume amounted to 43,300 shares across five transactions.
Malta Properties Company plc topped the list of fallers as it contracted sharply, by 8.77 per cent, to settle at a price of 0.52. A total turnover of €6,153 was generated across seven deals.
Main Street Complex plc closed unchanged at €0.65 despite trading at a weekly low of €0.60. A total of 10,100 shares were traded over four deals last Friday.
Similarly, a single trade of 10,000 Malita Investments plc had no impact on the share price of €0.88.
In the corporate bond market, turnover increased to €1.5 million from the previous week’s €1.1 million. A total of 41 issues were active, of which 11 appreciated and 16 fell. The 5.75% International Hotel Investments plc Unsecured € 2025 was the best performer, having increased by 0.94 per cent, to close at €107.50. Meanwhile, the 5% Mediterranean Investments Holding plc Unsecured € 2022 headed the list of fallers, having declined by 2.79 per cent, to close at €101.
In the sovereign debt market, a turnover of €4.2 million was generated across 22 issues, of which gainers and fallers were evenly balanced at 11 each. The longer dated issues generally posted gains, while the shorter dated Government Stocks headed south. The 2.1% MGS 2039 (I), which was the most liquid issue, was also the best performer as it gained 2.05 per cent, to close at €101.49.
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 2122 4410, or e-mail info@jesmondmizzi.com.
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