Index lower as sell-off momentum prevails
MSE Trading Report for week ending September 6, 2013
Following last week’s minimal decline, the Malta Stock Exchange (MSE) Index was pushed towards a notable decline of 1.4 per cent this week, solely conditioned by the sell-off momentum registered across major highlycapitalisedequities. In fact, the three active Banks captured losses across the board, while GO plc surrendered its recent stable trend by suffering a remarkable depreciation in its share value. On the contrary, RS2 Software plc (RS2) continued to flourish by touching a new all time high, while Island Hotels Group Holdings plc (IHG) extended its garnishing momentum by adding further value.
In the week, volumes were noted on high numbers of one million shares which were traded across 15 equities, in which losers reigned over gainers, as 10 lurched lower, three locked gains, while Crimsonwing plc and Tigne Mall plc were the non-movers for the week at respective closing prices of €0.74 and €0.515.
In the local Sovereign market, as opposed to the previous week investors opted for a more adventurous position as yields rose due to a fall in prices. In fact, investors tended to shift towards better returns despite the ongoing unrest in Syria which loomed over global markets. Turnover for the week was notably lower to just over €7.4m which were dealt over 6.6m nominal with long-dated issues emerging as the most vulnerable.
In the corporate front, total turnover was noted over €220,621 traded across 13 issues with the 6.2% Mizzi Organisation 2016-2019 issue heading the list of losers with a 1.8 per cent decline. Meanwhile, on Monday, Medserv plc announced a €13m note issue with a coupon rate of 6 per cent due in 2023. The company has the option to redeem the said issue from year 2020. The offer period commences on the September, 23, 2013 and all relevant documentation and applications for the issue are now available for potential investors.
Turning back to the equity segment, banks upheld their recent downward trend, with all three active banks ending the week within the redline zone. In fact, Bank of Valletta plc failed to sustain last week’s gain as it incurred a 1.7 per cent loss to close the week at €2.34, thus €0.04 lower.
Likewise, both HSBC Bank Malta plc and Lombard Bank plc experienced lower returns. The former recorded its fourth negative consecutive week as it recorded a loss of 1.6 per cent to close at €2.54 over volumes of 131,833 shares, the latter shaved-off 1.6 per cent on Friday over a single trade of 5,000 shares to close at €1.87.
Similarly, from the telecommunications sector, the share price of GO plc got hammered by 6.3 per cent over two sessions, in which 27,590 shares changed hands to close the week at €1.50. Accounting for this week’s loss the equity is down by 10.7 per cent from the year-to-date high of €1.68 which was noted in the last week of July.
Meanwhile, from the hoteliers sector, IHG maintained its bullish trend by gathering a further gain of 3.1 per cent to close at €0.845, thus registering just below 28 per cent over the past three consecutive weeks. On the contrary, from the same line of business, International Hotels Investments plc slipped by 2.2 per cent on Monday, in which 5,501 shares changed hands over two trades to close at €0.88.
On the same negative note, Simonds Farsons Cisk plc declined by 0.7 per cent to close at €2.78, while Plaza Centres plc cancelled 0.8 per cent from its value to end the week at the €0.56 price position.
Conversely, Malta International Airport plc returned to winning grounds following four weeks of losses. In fact, the airport operator advanced by 0.5 per cent over high volumes of 125,605 shares to close at €1.89. Meanwhile, on Wednesday the company announced its traffic results for the month of August, in which the said month registered an all time record in terms of passenger movements with 507,646 passengers passing through the airport. In addition, the company also noted that the Italian market registered the highest increase, that of 17.7 per cent.
The other gainer for the week was RS2 Software plc which managed to capture a new all time record high, as investors continued to express enthusiasm towards the software developer following last week’s announcement that Barclays Bank intends to acquire up to 20 per cent of the company. In fact, the equity surged by 8.8 per cent or €0.15 over four sessions to click higher towards the €1.85 price level. This week the equity had the lion’s share as high volumes of 359,864 shares changed ownership over 29 transactions.
Meanwhile, the other losers for the week were Midi plc which plunged by 6.4 per cent to €0.22, Maltapost plc which declined by two per cent, thus moving towards the €0.98 price level and Malita Investments plc which posted a loss by 2.7 per cent.