During the four-day trading week, the Malta Stock Exchange (MSE) index drifted further in the red, as losses in International Hotel Investments plc (IHI) and Malta International Airport plc (MIA) outweighed gains primarily in HSBC Bank Malta plc and Bank of Valletta plc (BOV). The index closed the week at 3,307.581 points – a few points above its four-week low reached last Wednesday.
Out of the 15 traded securities, five rose in value, eight contracted, while two closed unchanged. Trading value shrank by 20 per cent, to €828,000, of which half was traded in the financial services sector.
In the banking sector, HSBC shares rebounded by 2.6 per cent, following the previous week’s 6.9 per cent plunge. Last Monday was investors’ last opportunity to be entitled to receive the interim gross dividend of €0.045 (€0.029 net) declared by the bank earlier this month. The banking equity was active in 21 deals of 53,849 shares.
Its peer, BOV, accounted for 37 per cent of total trading value, with 35 transactions of 144,345 shares pushing the equity’s price up by 0.9 per cent. Trading in BOV shares ranged between €2.10 and €2.12, and closed the week at the upper end of the band.
Meanwhile, five deals of 7,151 shares in Lombard Bank Malta plc left its price intact at €1.60.
In the same line of business, Middlesea Insurance plc shares retreated by 2.2 per cent after the previous week’s 5.1 per cent surge, after a single deal of just 1,000 shares.
The primary laggard last week was IHI, whose shares retouched their multi-year low of €0.70 – a price reached last July – as the company is expected to announce its interim results in the coming weeks. Seven deals worth €22,000 dragged the equity’s price down by 7.9 per cent.
MIA shares also negatively impacted the index’s performance, as seven deals of 37,070 shares pulled its price down by 2.6 per cent to €2.25 – a six-week low. Shares of MIA last traded on Tuesday, which is the last day investors were entitled to the company’s next dividend payment of €0.03 net – payable by not later than September 12.
The share price of the telecommunications company Go plc shed 0.8 per cent of its six-year high of €2.40, as the interim results published last Wednesday failed to impress investors. During the six months ended June 30, the group registered a pre-tax profit of €8.51 million, as opposed to €8.26 million in the comparable period last year, reflecting a one-off administrative expense of €2.08 million.
Revenue for the period under review stood at €60.77 million, up from €60.53 million in 2013. Earnings per share (EPS) increased to €0.058. The group’s board of directors are not recommending the payment of an interim dividend. Albeit facing a competitive market environment, Go still managed to widen its client base, with the biggest growth resulting from the broadband, TV and mobile sections.
In the IT services sector, 6PM Holdings plc was the only gainer, as both RS2 Software plc and Crimsonwing plc lost ground.
6PM shares were active in four deals of 65,000 shares, partially reversing the previous week’s decline of 1.4 per cent by 0.68 per cent.
Conversely, Crimsonwing plc shares closed at their five-week low of €0.81, as three deals of 9,282 shares were negotiated. The IT company is expected to hold its annual general meeting on Thursday.
Similarly, RS2 shares halted a three-week winning streak, with one deal of 6,329 shares dragging its price down by 1.1 per cent.
Malita Investments plc closed at its three-week low of €0.541, after the week’s largest volume of trading of 177,300 shares, worth €96,000.
Meanwhile, Plaza Centres plc pared back all the losses experienced over the past month, as one deal of 12,000 shares lifted the equity’s price by 1.7 per cent.
One other faller last week was Simonds Farsons Cisk plc (SFC), whose shares registered a 0.3 per cent decline on one deal of 25,000 shares.
Santumas Shareholdings plc shares gained 0.5 per cent, ahead of the year-end results published last Wednesday for the period ended April 30. The closed-ended collective investment scheme reported a pre-tax profit of €715,000 – up by 20 per cent from 2013. Revenue increased from €243,000 in 2013, to €361,000, whereas EPS rose to €0.342. No dividend payment was proposed by the company’s board of directors.
The other non-mover for the week was Loqus Holdings plc, which was active in one deal of 1,000 shares.
In the corporate bond market, 19 issues were active, of which nine edged higher, four registered losses, while six closed unchanged. Turnover value jumped by 22 per cent to €537,000, with the Six per cent Pendergardens Developments plc secured euro 2022 series II accounting for more than 27 per cent.
Meanwhile, the short-dated 7.5 per cent Mediterranean Investment Holdings plc euro 2015 continued to trend lower, losing a further 1.1 per cent to €94.
The recently issued Five per cent Tumas Investments plc unsecured euro 2024 added a further one per cent, to currently yield around 4.7 per cent.
In the sovereign debt market, turnover shrank to €1.93 million from €42.86 million the previous week. Yields were compressed further as most government bonds continued their upward trajectory. This is in line with government yields across the European region, following disappointing GDP results for the second quarter across Europe’s two largest economies, Germany and France.
The most liquid issue for the week was the long-dated 4.45 per cent MGS 2032 (II) r, accounting for 44 per cent of total trading value, with its price up by 0.5 per cent as the yield fell to 3.8 per cent.
This article, which was compiled by Jesmond Mizzi, managing director of 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 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 at 67, Level 3, South Street, Valletta, or on Tel: 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.