IHI and HSBC shares push index towards a 23-month high

In line with the previous week, positivity prevailed as the Malta Stock Exchange (MSE) Index captured a gain of 0.9 per cent to reach a 23-month high at 3,369.651 points. In the week enthusiasm was on the forefront as investors turned bullish in three sessions, with International Hotels Investments plc extending its streak of gains, while HSBC Bank Malta plc managed to re-position itself in winning grounds following three straight weeks of declines. Conversely, Bank of Valletta plc closed the week notably lower despite recuperating from a remarkable mid-week dip.

In the week gainers reigned over losers, as eight equities added gains to their share value, two formed part of the losers list, while the other three closed unchanged. The lion’s share of volume traded was held by Bank of Valletta plc as 28 per cent of the 565,652 traded shares were executed in the said equity. Total transactions for the week in the equity market amounted to 181 deals.

Meanwhile, from the local sovereign debt market, as opposed to the recent risk-averse momentum, this week investors opted in trimming their notable profits following on Friday’s announcement of newly debt issuance by the Treasury. In fact two fungibility new issues were announced, the 3% MGS 2019 and the 4.5% MGS 2028. The aggregate issued amount will be of Eur100m, with the possibility of a further allotment of Eur70m in case of over subscription. Prices for both issues will be established on Thursday May 16, 2013, while applications will open on Monday May 20, 2013 and close on Wednesday May 22, 2012.

From the equity segment, financials opted for a positive week with the exception of Bank of Valletta plc. In fact, the highly capitalised equity closed the week lower by 3.3 per cent thus moving to the Eur2.21 price level. Throughout the week the equity lacked upright sentiment with losses recorded mainly in two sessions, as on Tuesday the fall in share value was attributed to the equity going ex-dividend. A total of 159,214 shares were dealt over 78 transactions.

On a different note, HSBC Bank Malta plc halted its downtrend position with a three per cent gain to close the week at Eur2.68. The equity experienced lows of Eur2.60, but managed to reinstate buying interest with a remarkable gain of 3.8 per cent on Wednesday. Activity was dealt over 16 trades worth Eur138,584.

In line with its peer, FIMBank plc added a further one per cent to its share value after swivelling from positive to negative in three sessions. With the said appreciation the dollar denominated equity re-touched its recent yearly highs of $1.02 which were last recorded in the second week of March.

From the hoteliers sector, International Hotels Investments plc continued to garner support by investors. In fact, the equity topped its share value by a further 4.6 per cent following last week’s notable surge. A total of 12,500 shares were dealt in a single session to close the week at a new 2013 high at Eur0.889. On Monday through an Interim Directors statement, the company gave a brief overview of its business for the first three month of 2013. It stated that revenues in Malta and Lisbon were roughly at the same level in the same comparable period of 2012, while trading in Budapest and London saw an improvement, particularly in the United Kingdom with a Eur2m improvement in operating profit.

Likewise, Malta International Airport plc registered a 0.3 per cent appreciation over three sessions to close the week at Eur1.925. The airport operator commenced the week on a positive note which it than sustained in the mid-week session as it touched its all time high of Eur1.95, while on Thursday it shaved-off 1.3 per cent from its share value. Meanwhile, on Monday the company announced its traffic results for the month of April, where passenger movements grew by 8.9 per cent reaching 331,369, the highest number ever registered in April. The U.K., Spanish and Italian markets were those which showed increases in the month of April.

Similarly, from the I.T. sector, RS2 Software plc closed the week at Eur1.039 after it touched a new all time high of Eur1.04 on Thursday, while 6pm Holdings plc soared by 5.7 per cent on Monday in which 15,260 shares changed hands to close at £0.56.

From the postal industry, Maltapost plc gathered an appreciation of just below one per cent to close the week at a two year high at Eur1.06. The equity emerged as the second most liquid as total volumes amounted to 99,389. On Thursday, the company announced its financial position for the first six months ending March 31, 2013 where it stated that profit before tax increased to one million, when compared to the Eur0.8m recorded in 2012.

The other gainer for the week was Malita Investments plc which captured a four per cent gain over 12,000 shares to close the week at Eur0.52.

Meanwhile, following months of inactivity Loqus Holdings plc shares returned to the trading desk with a loss of 4.8 per cent to close at Eur0.14.

Finally the non-movers for the week were GO plc, Santumas Shareholding plc and Island Hotels Group Holdings plc which closed at Eur1.59, Eur1.60 and Eur0.60 respectively. The telecommunications equity, Go plc, on Tuesday announced that during the Annual General Meeting which was held on the same day, all ordinary resolutions were approved.