As the month of August progresses, the Malta Stock Exchange index continues to shed its July gains as it slowly edges lower. Over the five trading sessions last week the index settled in the red nearly every day, with a final weekly loss of nearly 1%.
This loss came about following negative sentiment primarily surrounding two heavyweights on the local exchange, namely HSBC Bank Malta plc and International Hotel Investments plc. Furthermore, downbeat equity markets abroad accentuated the dark mood on the local exchange.
Trading volume fell slightly compared to the previous week, but this was nevertheless much higher than the average at this time of year. Once again, the bulk of this trading was concentrated in Fimbank plc shares. Only one of the 10 equities traded closed the week in positive territory. Five equities fell in value while the remaining four ended the trading week unchanged.
Last week there was heavy trading again in Fimbank plc as nearly 200,000 shares changed hands over eight deals. Although the stock ended the week 2% higher by closing at $1, nearly all traded shares were exchanged on Tuesday when the price was being pushed lower to $0.97. The price was upped to $1 only on Friday after an insignificant 173 shares were traded.
Trading was also quite lively in International Hotel Investment plc, with nearly 89,000 shares transacted over the trading week. The share price oscillated minimally, yet on Friday it closed 1.1% lower at €0.89. Given its large market capitalisation, this slight fall impacted the overall index negatively on Friday, which was otherwise a positive day.
Bank of Valletta plc’s share price continues to struggle to find direction as daily oscillations over several weeks continue to nullify any positive or negative movements. Indeed, the share price has been stuck at the €3.24 to €3.28 level for over a month. However, last week the share price seemed to be somewhat more volatile, with the price fluctuating between a low of €3.22 and a high of €3.30. Nevertheless, BoV closed the week unchanged at €3.26 following 38 deals exchanging 42,352 shares.
On the other hand, HSBC Bank Malta plc’s share price was driven lower last week, closing at €2.90, and so giving up 2.4% of its value. The falls occurred mainly during two sessions which also saw the lion’s share of the volume traded in this equity.
During the past few weeks, HSBC’s share price has eaten into the gains achieved last month, seemingly heading back towards the year-to-date low. This equity is underperforming its major competitor by just over 15% on a year-to-date basis.
Similar to HSBC, Malta International Airport plc has erased all last month’s gains to fall back to €1.58. Traded volume totalled nearly 28,000 shares exchanged over two trading sessions. Nevertheless, MIA is still the second best performing equity on the local stock exchange, with a 31.7% gain since the start of the year.
Despite a total of 15,000 shares in Middlesea Insurance plc being traded last week, the share price remained intact at €1.03. Similarly, Go plc and Lombard Bank plc closed the week unchanged at €1.90 and €2.80 respectively, following minimal trading.
By contrast, both Maltapost plc and Island Hotels Group Holdings plc shares lost value with the former shedding nearly 8.9%, yet volume traded was negligible.
A total value of €581,000 worth of local corporate bonds were traded last week. Prices of these bonds fluctuated minimally, with only a few outliers gaining value. Worth noting are the 6.75% Corinthia Finance plc 2012 bond gaining nearly 2% and closing the week at €103, and the 7% GAP Developments plc euro bond, which ended the week 1.5% higher at €98.49.
With benchmark yields across Europe, the UK and the US falling to nearly record lows, most government stock prices soared to new highs over the past days as concerns about global recovery resurfaced. This was mirrored in local trading as Malta Government Stock prices maintained their upward trend, climbing further in value.
The highest price changes were in the longer-dated MGSs, particularly the newly-issued 5.25 % MGS (I) Fungible Issue maturing in 2030, which soared by 3.4%.
No trading took place in Treasury Bills last week.
This article, which was compiled by Jesmond Mizzi, joint managing director of Atlas JMFS Investment Services Ltd, does not intend to give investment advice and the contents therein should not be construed as such. Atlas JMFS is licensed to conduct investment services by the MFSA and is a member firm of the Malta Stock Exchange. 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 Atlas JMFS at 67/3, South Street, Valletta, or on Tel: 2122 4410 or e-mailjesmond.mizzi@atlasjmfs.com