The Malta Stock Exchange Index slipped lower for the fifth session in succession having closed the week at 3,846.910 points, 1.86 per cent down on the week, yet registering gains of 11 per cent in January. The equity market was characterised by negative sentiment as only four of the 17 active equities registered gains, three closed unchanged, and 10 equities closed down. Liquidity and total deals recorded in the equity market were at a monthly low, while an increase in corporate bonds was noticeable.
Total transactions for the week amounted to 411 deals with a turnover of nearly €9.8 million. In the equity market, 268 deals were executed for a total value of over €1million while in the corporate bonds market 92 transactions, for a value of €899,592, were executed. Transactions in government bonds declined to 49 deals as value traded increased to €6.4 million compared to last week, while over €1.3 million was traded in the Treasury bills market.
Bank of Valletta plc closed the week in the red, having lost 4.2 per cent or €0.149 on the week hence closing at €3.40. Nonetheless, the equity was the most active as 79 deals were executed for a total of 98,821 shares. BOV traded at a weekly high of €3.549 on Monday and a weekly low of €3.40 registered yesterday. Despite the heavy gains registered in 2009 the share price of BOV managed a gain of 9.82 per cent in the first month of trading. Yesterday after trading hours, the bank announced that operating profits for the first quarter of the current financial year have been satisfactory and an encouraging growth in customers' deposits has been noticeable. BOV also announced that a new bond issue is expected in the second quarter of the current financial year, in part to make up for the redemption of the current subordinated bond, due to mature on March 15.
Similarly, HSBC Bank Malta plc failed to maintain last week's positive performance as the equity lost 2.5 per cent to end the week at €3.90. Volume traded in HSBC plunged by more than half as 42,937 shares changed hands over 52 deals when compared to 93,993 shares traded last week.
Conversely, the amount of shares traded in Go plc was at a monthly high as 112,740 shares were traded over 41 deals. However, the equity's weekly performance declined by 0.22 per cent, after the equity managed a minimal gain yesterday, having shed 0.44 per cent last Tuesday. On the month, the equity is 8.57 per cent up at €2.28.
Meanwhile Malta International Airport plc registered a gain of 6.55 per cent, or €0.19 to close the week at €3.09. After a positive four-day streak, the equity shed €0.01 during yesterday's session. Likewise, Datatrak Holdings plc managed a €0.035 gain across three deals of 2,300 shares to close at €0.195.
Lombard Bank plc also closed the week in the red as the share price slipped by 0.03 per cent yesterday, closing at €3.119. Volume was thin during the week as 7,252 shares were traded across five deals. Global Capital plc registered a hefty gain of 11 per cent to reach €1.887, having traded 7,270 shares during four sessions. The other financial equity to gain ground was FIMBank plc having closed at $1.18, thus 3.51 per cent up.
Activity in Middlesea Insurance plc was also on the low side as only 15 trades of just over 24,000 shares were recorded. The insurance firm's weekly loss amounts to a meagre 0.12 per cent, while its monthly gain stands at just under seven per cent, ending the week at €0.859.
Grand Harbour Marina plc was active during three sessions after being inactive for over a year, as 16,500 shares were negotiated over four transactions. Over the week, the share price slipped to €1.90, 4.04 per cent down. On Monday, the company announced a new bonds issue for a value of €10 million, maturing in 2017-2020 at seven per cent per annum issued at par. The net proceeds from the issue of the bonds will primarily be used by the issuer to prepay its current loan facility of €3.8 million, while the remaining proceeds will be deployed for potential further waterside and landside investments within the marina itself and within Malta. The issuer also indicated a possibility to co-invest with Camper & Nicholsons in existing and new investment marinas outside of Malta with a focus on the Mediterranean. The bonds are unsecured and shall at all times rank pari passu with other present unsecured obligations of the Issuer.
International Hotel Investments plc was active during three sessions as a clear preference towards this equity was noticeable with 96,000 shares changing hands. The equity closed at €0.78, down 2.5 per cent.
Two deals of 400 shares in Island Hotels Group Holdings plc left the share price unchanged at €1.01. Maltapost plc closed unchanged on Monday and shed 0.13 per cent on Tuesday, thus closing the week in the red at €0.799.
Simonds Farsons Cisk and Medserv plc were both active on Thursday as one deal in the two equities left the prices unchanged at €1.72 and €4.25 respectively. In the IT sector, Crimsonwing plc closed at a share price of €0.41 as 2,000 shares were traded in a single deal, down 4.21 per cent, while three trades totalling 10,150 shares in 6pm Holdings plc resulted in a decline of 28.3 per cent, ending the week at £0.48.
This article, which was compiled by Jesmond Mizzi, managing director of Jesmond Mizzi Financial Services Limited (JMFS), 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 Tel: 2122 4410 or e-mail jmizzi@jmfs.net.