The Malta Stock Exchange (MSE) index ended the week 0.26 per cent higher, to close at 4,107.753 points – a level last reached in mid-2008.
Year to date, the MSE index has gained 23.3 per cent, as opposed to a 9.8 per cent gain registered in the Euro Stoxx 50 index.
The MSE’s positive performance was buoyed by strong gains in shares of Bank of Valletta plc (BOV), RS2 Software plc, and Go plc. On the other hand, declines in shares of International Hotel Investments plc (IHI) and Mapfre Middlesea plc (MMS) stymied the index from settling higher.
Activity in the equity market was spread over a total turnover of €1.09 million – as opposed to €2.09 million registered the previous week.
Gains in shares of BOV, RS2 and Go were witnessed on strong turnover, accounting for two-thirds of total trading value. Twelve other securities were negotiated, of which two gained ground, six fell, and four closed unchanged.
BOV shares headed the list of gainers, locking in a 1.8 per cent gain to close at €2.34 – a two-month high – as 90,079 shares changed hands in 37 deals. Its peer, HSBC Bank Malta plc closed unchanged at €1.80 after a turnover worth €128,000, while shares of Lombard Bank Malta plc edged 0.5 per cent higher on thin volume.
In the same line of business, MMS shares more than reversed the previous week’s 0.3 per cent advance, as four transactions of just 4,500 shares dragged the equity’s price 1.9 per cent lower to €1.79 – a four-week low.
Buying interest in shares of Go lifted the equity’s price to an eight-year high of €3.45 after the highest turnover for the week of €285,000.
In the IT services sector, RS2 shares were traded in the second highest turnover for the week worth €237,000, which lifted the equity’s price up 1.6 per cent, to an all-time high of €2.
The week’s other gainer was Midi plc, whose shares retouched an all-time high of €0.34 as six deals of 63,800 shares were executed.
Negatively impacting the index’s performance were shares of IHI, which declined by a further 1.3 per cent following a 4.8 per cent loss the previous week. IHI was active in seven deals of 37,034 shares.
The MSE’s positive performance was buoyed by strong gains in shares of Bank of Valletta plc, RS2 Software plc and Go plc
Likewise, Plaza Centres plc extended its previous week’s loss of 0.9 per cent by 1.1, as a single deal of just 1,000 shares was struck.
Meanwhile, Tigné Mall plc shares erased their previous gains as two deals of 6,000 shares were struck at €0.85.
Malta International Airport plc (MIA) ended the week down by 0.5 per cent to €3.332 – marginally above its 15-week low of €3.33 reached intra-week. MIA shares were traded over a turnover worth €17,700.
Heading the list of fallers were shares of Loqus Holdings plc, down by 7.7 per cent following three weeks of inactivity. Last week there were two transactions of 1,424 shares.
The other non-movers for the week were Simonds Farsons Cisk plc, Medserv plc and Malita Investments plc.
The logistics and services company for oil and gas was active in six deals worth €92,400, while the other two equities were traded on a relatively much lower volume.
In the corporate bond market, there was a twofold increase in turnover, from €629,000 to €1.22 million. Out of the 23 traded issues, 11 rose in value, three declined, and nine closed unchanged.
The recently issued 4.5 per cent Izola Bank plc euro unsecured 2025 ended its first week of trading up by five per cent to €104.95 after nine deals of 180,000 nominal.
The 5.5 per cent Pendergardens Developments plc secured euro 2020 series I issue declined marginally by 0.3 in the highest turnover for the week of €336,000. At a price of €112, the issue offers a yield to maturity of 2.8 per cent.
Mediterranean Investments Holding plc (MIH) announced that it had obtained approval for issue of €20 million worth of 5.5 per cent MIH unsecured bonds due in 2020 guaranteed by Corinthia Palace Hotel Company Ltd with a nominal value of €100 per bond, issued at par.
First preference will be granted to holders of the maturing bonds (7.5 per cent MIH unsecured bonds 2015), subject to a minimum of €2,000, by surrendering their respective holding in the maturing bonds.
The issue is also being offered to other MIH bondholders and thereafter to IHI and Corinthia Finance plc bond holders.
In the sovereign debt market, all the 24 traded stocks bar one closed in negative territory, as total turnover stood at €6.97 million – a weekly decline of 41.6 per cent.
Strong declines were recorded in long-dated issues, with the three per cent MGS 2040 (I) r and the 4.65 per cent MGS 2032 (I) issues down by 2.6 and 2.2 per cent respectively. This mirrors the jump in yields in peripheral countries such as Italy and Spain, as concerns of a Grexit continue to weigh in, ahead of today’s much-awaited referendum.
This article, which was compiled by Jesmond Mizzi, managing director of Jesmond Mizzi Financial Advisors Ltd, 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 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 at 1/2, St Joseph High Street, Ħamrun, or on Tel. 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.