Government Bonds prices rise over stimulus comments
For the third consecutive week local sovereign investors continued to show impetus towards local Government issues as prices rose, thus reflecting the recent downward trend in yields. In fact, from the 21 active, 14 garnered support as the re-instated re-assurance, by mainly the Federal Reserve and the European Central Bank, in maintaining an accommodative easing position as long as required, prickled a positive move among investors. Despite this, turnover in Malta Government Stocks traded at around €5.8m over the five session just shy of last weeks volume.
Meanwhile, from the equity front sellers seized control as the Malta Stock Exchange (MSE) Index captured a 0.3 per cent decline to close the week at 3,425.068 points. In fact, lack of confidence was sighted in three sessions as the index incurred a loss of 0.5 per cent which thus blurred away the 0.2 per cent gain recorded in the other trading sessions. Financial equities, opted for a mixed position, with Lombard Bank plc closing notably higher, followed by FIMBank plc which managed to re-track positivity following three weeks of sell-off. Conversely, Middlesea Insurance plc lurched remarkably lower, while from the I.T. sector both 6pm Holdings plc and RS2 Software plc encountered selling pressure following their recent bullish trend.
Looking at the traded figures, turnover for the week reached just over €0.45m traded across 16 equities. Meanwhile volumes were noted at 364,782 shares which were executed over 110 transactions. In the corporate bond market volume traded reached €250,000 while Malta Government Bonds tradedtotalled€5.8m.
From the banking front, gainers prevailed over losers as from the four active shares, three gained while one traded lower. In fact, Lombard Bank plc moved back to the €1.85 price level, as the equity posted a weekly gain of just below three per cent over a single session. On Wednesday the Bank announced that the board of directors will be meeting on Thursday August 22, 2013, to consider and approve the Group’s and Bank’s Financial Statements for the interim period ending June 30, 2013.
Similarly, buying interest was re-instated over Bank of Valletta plc, as the banking equity rose by 0.4 per cent to close at €2.28, after trading at an intra-week low of €2.269. Likewise, FIMBank plc managed to snap back 1.01 per cent, thus returning to the $1.00 share value position. Meanwhile, on Monday the Bank announced that the board of directors will be meeting on August 13, 2013, to consider and approve its financial statements for the first six months of 2013, in addition to the payment of an interim dividend.
On the contrary, HSBC Bank Malta plc shaved-off 0.9 per cent from last week’s remarkable appreciation over 13 trades worth €57,226 to end the week at €2.715. Meanwhile from the same line of trade, Middlesea Insurance plc (MSI) traded lower by €0.035 over two sessions, a weekly loss which might have been conditioned by the announced financial results. In fact, on Thursday the Insurance operator released its interim financial statements for the first six months of 2013, were profit before tax amounted to €6.82m, thus almost a decline of five per cent when compared to the €7.17m registered during the comparative period in 2012. In their statement the Directors stated that satisfactory results were registered due to the improved performance of MSV Life plc, its subsidiary which managed to register higher profits.
On an encouraging note, following its recent bearish momentum which had commenced in the third week of May, GO plc shares displayed confidence with a 1.3 per cent gain to end the week at €1.54. A total of 20,486 shares changed ownership over 11 transactions.
Likewise, Malita Investments plc locked two per cent advancement on Tuesday to close the week at €0.51.
From the hoteliers business, International Hotel Investments plc closed unchanged at €0.89 after touching an intra-week high of €0.90, while Island Hotels Group Holdings plc (IHG) cancelled a notable 5.7 per cent from last week’s rally to close the week at €0.66. Meanwhile, on Thursday IHG announced that following the acquisition of 50 per cent in Buttigieg Holdings Limited way back in 2011, a framework agreement which formed part of the deal, contemplated an additional allotment of shares in IHG in favour of the other shareholders in Buttigieg Holdings Limited, subject to certain satisfactory conditions. Since the said conditions were satisfied, the share allotment of 243,500 ordinary shares will be issued and admitted to the trading desk accordingly.
On the same note, both Malta International Airport plc and Maltapost plc ended the week modestly lower. The airport operator extended its weekly loss for the second week in a row with a further decline of 0.9 per cent to close at €2.06, while the postal service provider returned to the trading desk following five weeks of inactivity, with a weekly loss of 0.5 per cent. The latter was active over 2,000 shares to close at €1.045.
Furthermore, Simonds Farsons Cisk plc edged 0.4 per cent lower to close at €2.75, while Midi plc plunged by just over two per cent over 40,000 shares to close at €0.24.
From the I.T. sector, RS2 Software plc cancelled 0.8 per cent from its all time high level of €1.32 to close at €1.31, while 6pm Holdings plc declined by £0.01 across low volumes of 1,000 shares to re-move towards the £0.61 price position.
Finally, the other non-mover for the week was Santumas Shareholdings plc which traded flat at €1.85 over a mere of 59 shares.