Last week, turnover in the corporate bond market rose from €1.5 million to just under €2.1m, spread across 37 issues, of which 19 rose, 12 fell and six closed unchanged.  The 6.2 per cent Tumas Investments plc € 2017-2020 was the best performer, rallying by 2.2 per cent to close at €103. This might have reflected the fact that last Tuesday, the company announced that it will redeem the bond on July 10.

The company also announced that it has submitted an application to the MFSA’s listing authority requesting the admission to listing of €25 million in bonds redeemable in 2027. If approved, the net proceeds from the new bonds will be used by the company to finance the redemption of the maturing bonds.

Last Tuesday, Mediterranean Investments Holding plc (MIH)  announced that it will redeem the €28.5 million 7.15 per cent euro denominated bonds 2015-2017, the £4.3m 7.15 per cent GBP denominated bonds 2015-2017, and the $7.1m 7.15 per cent USD denominated bonds 2015-2017, on July 6.

It also announced that it has applied to the MFSA listing autho­rity to request the admission to listing of €40 million five per cent MIH unsecured bonds 2022 to be issued at par and guaranteed by Corinthia Palace Hotel Co. Ltd.

Orion Finance plc announced the issue of €5 million 4.75 per cent unsecured bonds maturing in 2027 at the price of €100 per bond, guaranteed by  Orion Retail Investments Ltd, a limited liability company incorporated and registered in Malta. The guarantor is the parent company of the issuer and is a subsidiary of Camilleri Holdings Ltd. The main activity of Orion Retail Investments Ltd is that of acting as a property managing company. The bonds were approved for admission to Prospects by the Malta Stock Exchange (MSE).

Last week, the MSE index fell for the third consecutive week, by 0.011 per cent to close at 4,631.342 points. Activity was spread across 17 equities, of which six fell, eight rose and three closed unchanged. Turnover was €2.1 million.

Mapfre Middlesea plc shares were the worst performers, retreating by €0.059, or 2.9 per cent, after five deals of 4,981 shares, to close at a 22-month low of €1.951.

Bank of Valletta plc (BOV) shares slipped by 1.4 per cent after the highest volume of 271,191 shares, closing €0.03 lower at €2.16. Likewise, HSBC Bank Malta plc shares edged 0.4 per cent lower as 21 deals of 66,153 shares were struck, to close at €1.981. Conversely, Fimbank plc shares rose by 0.7 per cent after 16 transactions of 124,429 shares, closing at $0.78.

Global Capital plc shares rallied by 6.3 per cent as two deals of 4,000 shares were negotiated, to close at €0.34. Last Thursday, the company announced that it will be convening an extraordinary general meeting on June 23 during which shareholders will be asked to consider and approve several resolutions mainly related to its capital and balance sheet structures. Last Friday, the company announced its intention to conduct a rights issue, subject to regulatory approval.

Simonds Farsons Cisk plc (SFC) shares climbed by 0.3 per cent as a sole transaction of 2,159 shares was executed, closing at an all-time high of €7.551. On another positive note, Maltapost plc shares soared by a significant €0.079, or 4.1 per cent, after six deals of 28,780 shares, to close at €2.029 – a three-week high.

Telecommunications provider GO plc registered a €0.07, or two per cent, increase in its share price. The equity was active in 24 deals of 131,358 shares, to close at €3.55.

International Hotel Investments plc (IHI) shares rose 2.3 per cent as 3,800 shares were traded, closing at €0.62. Meanwhile, Malta International Airport plc (MIA) shares edged 0.2 per cent higher, to close at €4.13. The local airport operator’s shares were active in 15 transactions of 21,550 shares.

Medserv plc shares closed unchanged at €1.25. The equity was traded in 17 deals of 268,298 shares. Last Monday, the company said the rise in the oil price has shown signs of resilience and the market may be entering a more stable period. This has allowed the major international oil companies to return to greater profitability in first-quarter results. This turnaround was helped by the decision of OPEC and others to cut output levels, as well as by a re­struc­turing process. These actions could usher in a period of stability. The company expects this to have a knock-on effect on the service company sector in the near term.

RS2 Software plc registered no change in its €1.55 share price as 18 deals of 66,900 shares were struck. Last Friday, the company reported that in the first months of 2017, the group continued with its strategy of intensively growing its managed services business. As announced in January, RS2 Smart Processing concluded three major agreements with one of the largest acquirer in Europe, a Latin American company and a Canadian company.

In addition to these new agreements, the group has already concluded letters of intent and is at an advanced stage of contract negotiation for delivery of managed services to clients in Argentina, Australia, UK and Portugal. These new engagements are currently being implemented and are expected to be completed by the end of the year.

When completed, the number of live clients for the group’s managed services business will rise threefold and will increase recurring revenue from this business stream. Revenue from transaction services from these agreements is expected to start materialising in the latter part of 2017.

PG plc shares rose by 0.3 per cent after 13 deals of 66,427 shares, closing at €1.299. Meanwhile, Malta Properties Company plc (MPC) shares fell by a marginal 0.2 per cent as 10 deals of 122,895 shares were negotiated, to close at 0.51. Midi plc shares edged 1.6 per cent lower as 12,000 shares changed ownership, closing at €0.315. Likewise, Tigné Mall plc shares fell by two per cent after three deals of 50,000 shares, to close at €0.98.

The week’s other non-movers were Malita Investments plc shares, which closed unchanged at €0.72. The equity was negotiated in 10 deals of 47,000 shares.

In the local sovereign debt market activity was spread across 25 issues, of which 13 decreased and 12 rose, as most of the long-dated bonds gained ground. Turnover totalled €3.9 million, compared to €7.4m traded in the previous week. The 2.5 per cent MGS 2036 (I) was the most liquid issue, witnessing a turnover of over €0.5 million, closing 0.1 per cent higher at €104.50.

This article which was compiled by 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 is 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 Financial Advisors Ltd at 67, Level 3, South Street, Valletta, or on Tel. 2122 4410 or e-mail info@jesmondmizzi.com.

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