This week was characterised by high demand for Malta Government Bonds and two new bond issues. In fact, the 6.25% International Hotel Investments 2015-2019 bond issue for a total value of €35 million and the 6.25% Tumas Investments plc 2014-2016 bond issue for a total value of €25 million were oversubscribed on their respective launch days.
Trading in government bond market this week reached a value of over €14.74 million spread over 52 transactions. This was a positive week for government stocks as 14 of them ended the week up with only four stocks losing ground on the previous week as the Governing Council of the European Central Bank decided that the interest rate on the main refinancing operations and the interest rates on the marginal lending facility and the deposit facility will remain unchanged at one per cent, 1.75 per cent and 0.25 per cent respectively.
The Malta Stock Exchange index lost a marginal 0.02 per cent during the week, closing at 2,940.944 points. The MSE index gained 8.98 per cent in the second quarter of 2009, having however lost 8.62 per cent in the first six months of trading.
The MSE index was up on Wednesday and Thursday by 0.123 per cent and 0.034 per cent respectively.
However these increases were not sufficient to erase the decreases of Tuesday and of yesterday, as the index is now on its third consecutive week of negative performance. On Monday there was no trading session due to a public holiday.
A total of 181 deals were registered over the week with a turnover of over €20.53 million. In the equity market, 76 transactions were executed for a total value of €197,172, while in the corporate bond market 34 transactions were registered for a value traded of €198,954. In the Treasury bills market a total of 19 transactions were registered for a total value of over €5.39 million.
All banking equities remained unchanged this week. Bank of Valletta plc registered the highest trades, as 29,010 shares changed hands across 31 deals. BOV closed the week at €2.65, thus remaining unchanged for the third consecutive week. The equity decreased only on Tuesday (down 1.89 per cent), but increased on Thursday and yesterday.
HSBC Bank Malta plc remained unchanged throughout the trading week, after last week's gains of 1.96 per cent. The equity closed at €2.60, after trading 19,645 shares over 22 transactions, for a total value of 51,010. HSBC traded at a high of €2.61 and a low of €2.579.
Lombard Bank plc closed the week at €2.55, having traded once with a mere 600 shares changing hands. Likewise, FIMBank plc also traded once on Thursday at $1.18, with 2,287 shares changing hands.
Go plc was once again a positive performer, and the only equity to register gains this week. Go closed the week at €1.82, appreciating by 0.55 per cent, a mere €0.01. A volume of 10,475 shares was traded over 12 deals as the equity traded at a low of €1.79 and a high of €1.821. Go is now the best performer year to date.
On Tuesday, Go plc announ-ced that Forgendo Limited (the joint venture company between Go plc and Emirates International Telecommunications (Malta) Limited) acquired a further 991,449 shares in Forthnet S.A. issued share capital, for a total consideration of over €1.82 million.
Crimsonwing plc was the worst performer this week, as the equity lost an overwhelming 35.9 per cent on a single trade of 14,200 shares. Crimsonwing lost €0.14, to close the week at €0.25.
Malta International Airport plc was once again in negative territory, although this week's loss was a marginal 0.05 per cent. MIA depreciated by €0.001 from last week's share price, closing the week at €2.091, with 8,000 shares being exchanged on three deals. Wednesday's increase of 3.25 per cent was not enough to keep the share price up for the week, as MIA decreased yesterday by €0.069.
Middlesea Insurance plc was also one of the negative performers this week. The equity closed at €1.86, a loss of seven per cent, or €0.14, as 3,000 shares changed hands across two deals.
The week was also characterised by single deals in a number of equities traded, namely, GlobalCapital plc (€1.50; no change; 266 shares), Medserv plc (€3.50; down €0.05; 5,000 shares) and RS2 Software plc (€0.679; down €0.011; 5,000 shares).
This article which was compiled by Jesmond Mizzi Financial Services Ltd does not intend to give investment advice and the contents therein should not be construed as such. JMFS is licensed to conduct investment services by the MFSA. 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 JMFS at 67/3, South Street, Valletta or on telephone 2122 4410 or e-mail jmizzi@jmfs.net.