Trading on the local stock exchange kicked off the month of May in a positive yet volatile manner. A pick-up in volume also indicates some renewed conviction among local investors following the results issued by Bank of Valletta plc the previous Friday.
While the index jumped in the week's initial two days of trading it remained quite jittery for the rest of the week as investors reaped the profits from the quick upswing. Nevertheless, the MSE index closed the week at 3,537.603 points, a climb of 0.90% over the previous week.
The local exchange has therefore climbed higher two weeks in a row. This shows the MSE is very sheltered from the heavy losses reported on most major markets abroad.
Volume traded in the equity market was nearly double that of the previous week, with higher trading in both leading banks. Out of the 12 listed companies whose equities were traded, only three reported losses, and one remained unchanged. The remaining eight saw encouraging gains, helping to push the index slightly higher last week.
International Hotel Investments plc was the best performer of the week, while Go plc saw the biggest slide.
Following the issue of its results the previous week, Bank of Valletta plc's share price soared on Monday, reaching €3.50 from the previous close of €3.365. This 4% gain was backed by steady volume. However, this gain was very short lived as the share price was gradually eroded in every subsequent trading session.
The fall in price was initially backed by low trading volume, which picked up as the week progressed. All gains were already nullified by Thursday, with the share price closing 1.04% in the red in Friday's session.
Volume traded in HSBC Bank Malta plc continues to improve. Last week, just over 88,000 shares were exchanged in 66 deals. The share price managed to end the week positively, after nearly three months of negative-to-flat weekly performances.
The week was not all plain sailing, however, as intra-week volatility saw the share price fluctuate between €3 and €3.07. Nevertheless, the equity price closed Friday's session €0.01 higher at €3.06.
Trading in Go plc was also fairly heavy last week with 56,567 shares exchanged over 13 deals. On Monday, the sale of a meagre 400 shares made the price plunge from its previous close of €2.168 down to €2.11. However, in the following days hefty volume led to a recovery of some of the loss and thereafter the price remained unchanged at €2.12.
Last week's negative performance caused this equity's share price to edge closer to its level at the end of 2009, thereby erasing nearly all the gains of the past four months.
By contrast, Maltapost plc continues to beef-up its year-to-date gains week after week, rising by 22.9% since the start of the year. Last week added a further 1.42% to the overall gains, backed by decent volume. A total of 42,265 shares changed ownership spread over four trading sessions, as the equity closed the week at €0.86.
Following weeks of limited activity, there was a slight uptick in trading in Middlesea Insurance plc equities last week. A total of 39,240 shares were traded, mostly on Monday, leaving the share price intact at €0.70. However, a minor 300-share deal on Friday boosted the price by a hefty 4.29% to close at €0.73. This equity has therefore continued to fluctuate within the range of €0.70 and €0.75 for the past three months.
The week's best-performing equity was International Hotel Investments plc, which added a further 5.86% to its share price to reach €0.849. Volume was also much higher with an encouraging 39,000 shares backing this rise.
There was also above-average trading in Crimsonwing plc equities, with 38,500 shares changing hands over four deals last week. However, the share price fell 2.17% to close at €0.45.
A total of 23,235 Malta International Airport plc shares were traded last week, leading MIA's share price to a further high of €3.25, a very steady year-to-date gain of 35.42%.
Trading volume was very light in both Lombard Bank plc and Simonds Farsons Cisk plc. However, both recorded gains of 0.17% and 4.05% respectively.
Minor trading of 1,000 shares in both Medserv plc and Loqus Holdings plc led the former equity's share price to climb 0.94% while the latter remained unchanged.
A total of €327,000 worth of local corporate bonds were traded last week, with the best performer being the 7% GAP Developments plc euro bond maturing between 2011 and 2013. This bond's price edged 2.10% higher to reach €97. The prices of most other traded bonds remained fairly unchanged. Meanwhile, trading in Treasury bills amounted to €1.3 million.
Just over €4.5m worth of local government bonds were traded last week, with most MGS prices climbing steadily once again as benchmark German yields reached all-time lows following further intensification of complications in the eurozone, due to national debt problems. As is often the case, longer-term government stocks are the more volatile and most responsive to changes in yields.
On Friday, the Treasury announced an offer of €100m in Malta Government Stocks which are being offered in any combination of the following issues: 3.75% MGS 2015 (VI) F.I., 4.6% MGS 2020 (II) F.I., and 5.25% MGS 2030 (I). Prices of each stock will be determined on Thursday and applications will be open from May 17.
This article, which was compiled by Jesmond Mizzi, managing director of Jesmond Mizzi Financial Services Ltd (JMFS), does not intend to give investment advice and the contents therein should not be construed as such. JMFS is licensed 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, call 2122 4410 or e-mail jmizzi@jmfs.net.