Equity index halts five weeks of gains

MSE Trading Report for week endingJuly142017

The MSE index broke its five-week winning streak as the index declined by a marginal 0.067 per cent to close at 4,720.527 points. A total of 16 issues were active during the week of which, seven lost ground, five closed higher, while four remained afloat. Banking equites primarily, FIM Bank plc, Bank of Valletta plc and HSBC Bank Malta plc were the major contributors towards this decline. Total turnover during the week declined from €1.79 million to €1.71 million.

In the banking sector, Bank of Valletta plc shares hit a six-week low at €2.175- as a total of 71 trades managed to generate a total turnover of €434,441. Likewise banking counterpart, HSBC Bank Malta plc also closed in negative territory as it closed 0.14 per cent lower at €2.068. Total turnover in the equity amounted to €170,431, spread between 15 transactions.

FIMBank plcshares were the worst performer among its peers, as five trades amounting to 21,000 shares shaved 3.25 per cent of the equity’s value at $0.745- hitting a 15-month-low.

On Wednesday, the bank announced that the Board of Directors will be meeting on August 9, 2017 to consider and approve the consolidated financial statements for the half-year ended June 30, 2017; and to consider the payment of an interim dividend, if any.

On a positive note, GO plc shares reached their highest level since February 2017, having closed at €3.569. The equity experiences a four-day winning streak between Tuesday and Friday, with total turnover during the week amounting to €147,453 spread between 23 trades.

On the contrary, RS2 Software plc shares broke its 13-day winning streak, as the equity curbed last week’s gain. The equity lost 0.54 per cent of its value to close the week at €1.84 – as 43 trades generated a total turnover of €318,258.

On Wednesday, Malta International Airport plc announced that it welcomed 578,827 passengers in June, translating into a growth of 17.5 % over the same month last year. June’s growth partly resulted from Malta International Airport’s recently launched summer schedule, which is its busiest yet, featuring an average of 130 flights a day. The airport’s top five markets in June were the United Kingdom, Italy, Germany, France, and Spain. These markets all registered varying degrees of growth, with the Spanish market experiencing the most marked increase, at 38.2 per cent. June’s numbers bring the total number of passengers for the first half of the year up to 2,639,712.

Despite generating a total turnover of €208,574 spread among 24 deals, the equity closed flat at €4.15.

Simonds Farsons Cisk plcand Santumas Shareholdings plc reached a fresh all- time high on a slim volume of one and two trades respectively, to close at €7.75 and €2.13 respectively.

On Friday, Medserv plc announced that Eni Cyprus Ltd has extended the contract for provision of operational base support services in Cyprus for another two years. The contract extension includes the provision of dedicated facilities and services in the port of Limassol whilst still maintaining the base facilities in Larnaca port. The Company has secured the areas in the Limassol port and is in the process of setting up the facility to meet the stipulated timelines for the upcoming exploratory drilling programme. During the past two years Eni has increased its exploration portfolio in the strategic area of Eastern Mediterranean Sea.

The equity registered minimal activity during the week as a single trade on Monday of 7,500 shares dropped the equity’s price to a two-week low at €1.275.

After last week’s drop, Mapfre Middlesea plc shares increased by 0.54 per cent to close the session at €1.87 – as six trades saw 7,592 shares exchanged hands.

In the property sector, Malta Properties Company plc, registered the weakest performance among its counterparts as the equity dropped by 4.5 per cent to close at €0.51.

Meanwhile, Malita Investments plc followed suit as six trades amounting to 39,150 shares pushed the price to a 14-week low at €0.73.

Plaza Centres plchad a strong session on Thursday as the price of the equity surged by 14.9 per cent. Total turnover in the equity amounted to €199,690 spread over 13 deals - as trading activity was spread between Thursday and Friday.

Elsewhere, PG plc, International Hotel Investments plc and MIDI plc closed the week unaltered at €1.30, €0.60 and €0.31 respectively, on substantial volumes.

In the sovereign debt front, another choppy week was registered, as a total of 26 issues were active of which the majority amounting to 17 closed in the red, while nine headed north. Longer dated bonds having a maturity greater than 20 year, recouped some of last week’s lost ground as gains ranged from 0.57 to 1.39 per cent. The 4.65% MGS 2032 (I) registered the highest increase during the week as the issue added 2.49 per cent to its price to close at €136.63 – as 16 trades generated a total turnover of €3.85 million. 

In the corporate debt front, a total of 30 issues were active during the week of which 12 headed south, 10 closed higher, while eight remained unchanged. The 6% Pendergardens Developments plc Secured €2022 Series II registered thisweek’s largest decline as the bond price fell by 4.38 per cent to close at €109 – as five trades generated a turnover of  64,900 nominal.

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

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