Eighth straight week of gains on the MSE

The Malta Stock Exchange (MSE) index extended its streak of weekly gains to eight, ending the week up by 0.51 per cent and closing at 4,128.819 points, a few points shy of a seven-year high of 4,137.924 points reached on Wednesday.

Pushing the index higher were shares of RS2 Software plc, Malta International Airport plc (MIA) and Go plc, which in aggregate account for around 23 per cent of the index’s total market value.

On the other hand, financial services companies such as Bank of Valletta plc (BOV) and Mapfre Middlesea plc (MMS), as well as International Hotel Investments plc (IHI) – which in total account for another 40 per cent of the index’s total market value – hindered the index from settling higher.

Total trading value increased by 69.2 per cent to €1.85 million, as 17 equities were negotiated – of which eight rose in value, six fell out of favour, and three closed unchanged.

Buying interest was noted in shares of RS2 and Go, accounting for 46.3 per cent of total turnover.

IT services company RS2 headed the list of gainers, locking a double-digit gain as 52 deals of 186,833 shares were struck. The equity rallied by 10.8 per cent, to close the week €0.005 shy of its all-time high of €2.22 reached intra-week.

In the same line of business, 6PM Holdings plc recorded a 4.8 per cent advance after a single transaction of just 1,000 shares – following eight weeks of inactivity – after adjusting for the bonus issue of one share for every 50 shares held.

Shares of MIA more than reversed its previous week’s 0.5 per cent decline, as 28 deals of 74,720 shares lifted the equity’s price by 3.5 per cent to a seven-week high of €3.45.

Likewise, Simonds Farsons Cisk plc (SFC) appreciated by 3.3 per cent as 3,810 shares changed hands in five deals.

Telecommunications company Go was traded in the highest turnover of the week, worth €447,000. Buying interest pushed the company’s share price to €3.54 – a price level last seen in November 2006.

Midi plc shares topped up their previous all-time high of €0.34, as three deals of 85,000 shares pushed the equity’s price up by 2.9 per cent to €0.35.

The week’s other gainers were Malita Investments plc and Loqus Holdings plc, locking-in a 1.1 and 0.8 per cent gain respectively. The special purpose vehicle was active in four deals of 62,000 shares, while Loqus Holdings’s gain occurred after one deal of a mere 600 shares.

In the financial services sector, BOV’s share price reversed its previous week’s 1.8 per cent advance with a weekly loss of 1.7 per cent following selling pressure in Thursday’s session, to close at €2.30.

There were 59 transactions, worth €326,000, in the banking equity, which traded at a weekly high of €2.339 and a low of €2.279.

Its peer, HSBC Bank Malta plc edged 0.1 per cent lower after 109,491 shares were traded in 36 deals, executed between €1.78 and €1.80.

Meanwhile, Lombard Bank Malta plc shares retreated by 2.1 per cent on thin volume, to close at €1.82.

MMS extended its previous week’s 1.9 per cent decline, as four deals of 12,500 shares pulled the equity’s price down by 2.8 per cent to €1.74 after dipping to a weekly low of €1.67.

Similarly, IHI shares fell by 1.2 per cent as 29,520 shares changed hands in five deals.

The other faller for the week was Plaza Centres plc, as a sole deal of 20,000 shares was negotiated at €0.96.

No change in price was recorded in shares of Medserv plc, Maltapost plc, and Tigné Mall plc, all of which were active on relatively low volume.

In the corporate bond market, total turnover stood at €1.53 million, as opposed to €1.22 million the previous week.

Out of the 20 traded issues, seven rose in value, four lost ground, while nine closed the week unchanged.

The recently issued 4.5 per cent Izola Bank plc euro unsecured 2025 accounted for 59.5 per cent of total trading value, to end the week marginally lower at €104.35 – a weekly decline of 0.6 per cent.

On the other hand, the 4.6 per cent HSBC Bank Malta plc euro 2017 issue recorded a 0.9 advance, to close at €105.

6PM Holdings plc announced that the listing authority had approved its application for the issue of €13 million 5.1 per cent unsecured bonds redeemable in 2025, with a nominal value of €100 per bond issued at par.

The issuer will be granting preference to shareholders listed on the share register at the central securities depository as at close of business last Monday, to subscribe to the new bonds.

In the sovereign debt market, total turnover increased by 7.4 per cent to €7.48 million, spread over 24 issues.

Long-dated issues rebounded from their recent declines as concerns of Greek exit eased on Thursday, ahead of the submission of the proposal to bailout authorities by Greece’s prime minister – with the aim to free up a new three-year €53.5 billion bailout package in order to save the country from bankruptcy.

Strong gains were recorded across the 5.1 per cent MGS 2029 (I) and the 4.1 per cent MGS 2034 (I) issues, which ended the week up by 1.2 and 1.1 per cent, respectively; while the five per cent MGS 2021(I) issue represented 25 per cent of total trading value.

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 1/2, St Joseph High Street, Ħamrun, or on Tel. 2122 4410 or e-mail [email protected].


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