Nine equities lift index higher

MSE Trading Report for week ending November 01, 2013

The Malta Stock Exchange (MSE) Index ended the week in positive territory, to close at levels not seen for the past 10 weeks. The index closed 0.96 per cent higher at 3,480.47 points. This positive performance was mainly driven by strong gains in Malta International Airport plc (MIA) shares, which maintained their upbeat trend for the second consecutive week, followed by Bank of Valletta plc (BOV) which touched year-to-date highs following its positive financial results.   

Turnover during the week increased by 3.2 per cent to €1.16m as trading volume reached 722,407 shares. Activity was spread across 18 equities, out of which nine traded higher, of which seven outperformed the index, while four traded lower and five equities closed the week unchanged.

In the sovereign debt market, trading was in line with last week’s price movements, as shorter-dated bonds lost further ground as opposed to longer-dated bonds. Turnover for the week shot up from €10.3m to €64m, with most of the activity taking place in issues maturing in the coming five years. Meanwhile, on the corporate bond front, activity was rather sluggish with mixed price movements – 23 issues traded over a total volume of €413k.  The medium-term dated 7% Grand Harbour Marina plc € 2017-2020 was the top performer as it strengthened by 1.4 per cent to €106.  

Heading the list of gainers in the equity market was MIA, as its share price soared by almost five per cent to €2.099. The equity was active throughout the week, with volume totalling 45,400 shares, of which a mere 220 shares traded during Friday’s session pushed the price 3.9 per cent higher.

This week, banking equity investors were eagerly awaiting BOV’s financial results for the year ending September 30, 2013.  The results were released after close of trading on Thursday leading to a positive reaction by investors during Friday’s session when its share price rose by two per cent– this also marked the equity’s week-on-week gain – to close at €2.58. The Group registered a profit before tax of €115.78m, compared to €110.73m registered in 2012. The Board of Directors are proposing a net dividend of €0.0845 per share and a bonus issue of one share for every 10 held to all shareholders on the bank’s share register on Friday, January 17, 2014. A total of 177k shares exchanged hands, of which 41 per cent were traded during Friday’s session. 

HSBC Bank (Malta) plcadded a further 0.7 per cent to last week’s 0.4 per cent gain, to close the week at the €2.649 price level. The equity was flat on most occasions, with the exception of Thursday’s session, when 8,250 shares pushed the price 0.8 per cent higher to €2.65.

On the contrary, Lombard Bank plc gave up all of last week’s 2.2 per cent gain as selling pressure on Thursday pushed the price lower by 3.4 per cent to €1.85 – a loss of 2.6 per cent on last week. In the same sector, FIMBank plc closed unchanged at $0.945.

The telecommunications company GO, rebounded from these past two weeks’ losses, closing the week 1.4 per cent higher to €1.50. A total of 49,289 shares were traded, with 19,164 traded on Tuesday driving the price one per cent higher.

Simonds Farsons Cisk plc (SFC)was active during three trading sessions, closing the week 1.4 per cent higher at an all-time high of €2.84 reached on Tuesday.

In the IT industry, three equities were traded. 6PM Holdings plc was the only equity to register a loss after six weeks of inactivity, shedding 0.8 per cent to close the week at £0.605.  

RS2 Software plccontinued to sustain its upward momentum, again reaching a record high of €2.17 on Tuesday. No further change was noted thereafter, to close the week 0.9 per cent higher. Similarly, Crimsonwing plc again closed at its all time high of €0.85, appreciating during Monday’s and Friday’s session, to close the week 1.1 per cent higher.

Medserv plctraded 2.1 per cent higher, following last week’s 1.5 per cent gain, to close at €3.37. On Thursday, the company announced that the next extraordinary general meeting (EGM) will be held on November 21, 2013, primarily to resolve issues regarding an increase in the nominal value of the shares, and to put into effect a share split of 2.5 shares for every one registered share.

The other gainer for the week was Malita Investments plc, whose share price closed the week 1.2 per cent higher at €0.526 traded over 48,300 shares. The equity traded 1.9 per cent higher on Monday, followed by a loss of 0.8 per cent on Wednesday.  

On a negative note, heavily underperforming the index were Plaza Centres plc and Island Hotels Group Holdings plc. The latter was the worst performer as its share price contracted by 6.1 per cent to €0.93, on slight trading of 500 shares – this equity also resumed trading following six weeks of inactivity. Similarly, Plaza shares sank by 4.3 per cent to €0.56 – dealt over four trades of 49,800 shares.

International Hotel Investments plc, although closing the week unchanged at €0.75, had a substantial impact on the index on Tuesday’s and Thursday’s sessions. The company’s share price rallied 13.3 per cent on Tuesday, while it failed to sustain such return, as trading on Thursday completely eroded any gains made. Other non-movers for the week were MaltaPost plc, Loqus Holdings plc, and MIDI plc, closing at €1.05, €0.10 and €0.255 respectively.