The total market capitalisation of the Malta Stock Exchange exceeded the €10 billion mark for the first time in its history last year.
In 2014, a record high of 41 listed entities contributed to this, with four new entrants issuing corporate bonds and one €20 million equity admitted during the year, as well as 14 government stocks, other corporate bonds, and 85 issues of Treasury Bills.
A closed-ended listed fund was converted to an equity, bringing the total number of equities listed on the main and alternative companies list up to 24.
The new entrants contributed to an increase in the total market capitalisation value of 9.5 per cent to a year-end value of €10.3 billion, which is very significant, given the size and depth of the economy, the MSE said in its annual report.
Market turnover value also reached a new record of over €940 million, a significant 21.4 per cent more than 2013.
The capital market also registered a significant increase in secondary market activity when compared to the previous year.
The report said that there had been a marginal increase in interest in Malta Government Stocks, with an increase in the level of trading in corporate bonds, but a slight decrease in the trading of equities and a marginal increase in the trading of Treasury Bills.
Government bonds remain the highest traded instrument
There were 14 new government stocks issued during 2014, with a total value of €650 million. The largest increase in market capitalisation was registered in government stocks, which totalled €5.75 billion at the end of 2014, an increase of €715 million (14.2 per cent) comparing year-on-year values. Government bonds remain the highest traded instrument category, representing almost 89 per cent of the total turnover, and over 52 per cent of all trades.
At the same time, the Treasury Bill sector continued to shrink, registering a market capitalisation value of €140 million, down from €247 million the previous year.
The corporate bond market has been very active with the admission to listing of 14 new corporate bonds with a combined total value of almost €300 million; there were four new issuers on the bond market, bring the total number of entities up to 25.
This new business contributed to the significant increase the turnover of almost 30 per cent when compared to the previous year, with a total trade value of €43.2 million. The number of trades also increased significantly from 2,413 in 2013 to 4,056 in 2014, with the average value per deal of €10,657.
The equity market also registered a decrease in its market capitalisation value which decreased by 7.3 per cent during 2014 to close the year at €3.01 billion, down from €3.24 billion at the end of 2013.
The decrease in the market capitalisation value of €235 million in this sector of the market was mainly due to a decline in prices of the largest listed equities which also led to the loss in value of the index.
Conversely, the new admissions of corporate bonds that occurred during the year pushed up the market capitalisation value of this sector of the market by 54 per cent from €916 million as at the end of 2013, to €1.41 billion at the end of 2014.
The MSE share index closed the year at a value of 3,331.08, down from an end 2013 value of 3,685.79, a drop of 9.62 per cent.
Key figures:
Capitalisation: €10.3 billion
Turnover value: €940m (+ 21%)
MSE pre-tax profit: €2.34m (+16%)
44.5 million shares changed hands (-34%)
Transactions: 25,657 (+ 52%)