The yields of Malta Government Stocks climbed higher last week as prices closed marginally lower. In fact, 19 of the 22 active issues drifted lower, while no stock saw an increase in value. Turnover in these securities totalled €11.9 million, more than double the previous week’s figure of €5.7 million. The 4.3% MGS 2033 (I) recorded the largest price movement, as it lost 0.85 per cent in value, closing at €128.90. The short-dated 5% MGS 2021(I) was responsible for over 70 per cent of the total turnover, as seven deals of a combined €8.5 million were recorded. As a result, the government bond lost a minimal 0.06 per cent in value, closing at €112.93.

Meanwhile, their counterparts in the corporate debt market registered a more balanced week, as gainers marginally outweighed negative performers. Turnover amounted to €3.3 million, spread across 16 positive movers, 12 fallers, and 12 non-movers.

The 4.5% Medserv plc Unsecured € 2026 topped the list of gainers, having increased by a sizeable 2.4 per cent to reach €102.50. The 5% Mediterranean Investments Holding plc Unsecured € 2022, also enjoyed a strong week as it advanced 1.29 per cent to close at €102. The most liquid issue was the 3.85% Hili Finance Company plc Unsecured € 2028, as a turnover of €545,538 was generated over 25 deals. As a result, the bond posted a minimal gain of 1c to €102.50. On a negative note, the gain registered during the previous week by the 4.8% Mediterranean Maritime Hub Finance plc € 2026 proved unsustainable, as the bond price surrendered 1.49 per cent in value to return to the €102.20 price level.

Medserv plc performed well this week even on the equity side, as the share price soared by 10.58 per cent to reach a four-month high of €1.15. The equity was also the most liquid equity as 461,405 shares were exchanged over 41 transactions. All deals were executed in the aftermath of an announcement issued by the company on Tuesday.

The company announced that following an international tendering process, Medserv International Limited has been awarded a shore base contract valued at $30.6 million in a new geographical market in Guyana, South America.

The contract is for a period of 15 months, starting from the beginning of 2019. Medserv shall provide integrated logistics support services to a nearshore drilling campaign of Staatsolie Maatschappij Suriname N.V. (Staatsolie) together with shore base business partner Kuldipsingh Port Facility N.V. and marine services provider Trinity Lift Boat Services Ltd.

The group is expecting that this contract be serviced through its internal resources, since it will not require any major capital expenditure. The company claimed that this award, together with already contracted business, further underpins the projected revenue growth forecast for the next two years.

In spite of this positive performance, the MSE Equity Total Return Index ultimately closed 0.09 per cent lower at 8,923.036 points. Investor participation improved from the previous week, as turnover amounted to €1.8 million, compared to the previous unimpressive figure of €0.8 million. Activity was spread across 16 equities, of which seven headed north and five traded lower.

In the banking industry, the price of Bank of Valletta plc oscillated between a weekly low of €1.32 and a high of €1.35, ultimately closing unchanged at €1.33. Trading volume totalled 170,366 shares across 52 trades.

Its peer, HSBC Bank Malta plc followed suit, as it also closed unchanged at € 1.80. A total of eight deals were recorded as 32,375 shares changed hands.

Similarly, a single transaction of 2,900 Lombard Bank Malta plc shares had no effect on the share price of €2.40.

FIMBank plc (FIMBank) was the only exception in the industry, as a sole deal of 28,750 shares dragged the price 1.25 per cent lower to $0.79.

FIMBank was the only exception in the industry

After Friday’s market close, the bank announced that on November 21, 2018, United Gulf Holding Company B.S.C. (UGH) acquired over 19 million FIMBank shares from Burgan Bank K.P.S.C. Following this transaction, UGH shareholding in the bank has now increased from 74.89 per cent to 78.66 per cent, while Burgan Bank’s holding has gone down from 12.27 per cent to 8.5 per cent.

In the telecommunications sector, GO plc kicked off the week with a 1.01 per cent price gain to €4.00, a price which was then consistently sustained throughout the week. A total of 11 trades of 41,845 shares were recorded.

International Hotel Investments plc declined 1.67 per cent this week, settling at €0.59. This was the outcome of seven transactions of 119,218 shares.

Malta International Airport plc surrendered the gains registered during the previous two weeks, as it was down 2.38 per cent to €6.15. In total, €107,374 worth of shares traded across eight deals.

In the insurance sector, one deal of 1,887 Mapfre Middlesea plc shares pushed the equity price upwards by 1.55 per cent, reaching €1.96.

RS2 Software plc generated a significant turnover of €92,762 over 15 trades. The result was a 0.85 per cent loss in value, down to €1.17.

In the food and beverage sector, one transaction of just 500 Simonds Farsons Cisk plc shares was executed at €8.20, translating to a positive change in price of 1.23 per cent.

Meanwhile, retail conglomerate PG plc, was very liquid as it registered eight transactions of a combined 181,900 shares. As a result, the equity gained 0.74 per cent in value to €1.37.

In the property sector, Malita Investments plc was the only negative mover with a 3.33 per cent drop in price, to €0.87. During the week, seven trades were concluded, as 92,757 shares were exchanged.

On the other hand, MIDI plc partially recovered the previous week’s loss, as it bounced back 2.21 per cent to return to the €0.695 price level. Traded volume was substantial as 257,180 shares changed ownership over 11 deals.

Trident Estates plc also posted a considerable gain in price, albeit on slim volume. A sole transaction of 1,500 shares was executed at €1.55, thus pushing the equity upwards by 3.33 per cent.

Malta Properties Company plc was also active in the property sector, however, a traded volume of just 1,600 shares across two deals had no effect on the closing price of €0.56.

This article which was compiled by Jesmond Mizzi Financial Advisors Limited, 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 Limited at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email info@jesmondmizzi.com.

www.jesmondmizzi.com