Index sustains gains as BOV shares continue to rally

  The Malta Stock Exchange (MSE) Index advanced by a further 1.2 per cent this week and posted a gain of 4.1 per cent in the month of October. From the banking sector, Bank of Valletta plc shares were the primary source of strength towards the broader market with strong gain, while Lombard Bank plc managed to rebound from its yearly lows by registering a significant gain. Conversely, HSBC Bank Malta plc re-positioned itself in negative territory, followed by Middlesea Insurance plc which headed southwards to top-up to its recent declines.

The week was characterised by 13 equities being active, in which losers and gainers tallied to four, while non-movers totalled to five. Turnover increased to Eur920,726 traded over 181 transactions which totalled 684,536 shares.

Meanwhile, in the Government Stock Market, investors expressed conviction to local sovereign debt, as from the 16 active stocks 13 advanced in value, while three marked minimal declines. As opposed to the previous week, turnover decreased drastically to Eur1.8m as a result of the new issues. In fact, yesterday afternoon the treasury announced that all subscriptions by members of the public for the Malta Government Stocks, which amount to over Eur120m will be accepted in full. Meanwhile in total subscription reached nearly Eur253million of which just under Eur140 million were accepted.

In the Corporate Bonds market, yields were rather mixed as from the 21 active stocks two gained ground, seven edged lower, while 12 closed unchanged. The 6% Simonds Farsons Cisk 2017-2020 headed the list of losers with 2.3 per cent depreciation.

In the equity market, Bank of Valletta plc shares surged by 4.5 per cent, as investors digested positively the financial results which were released on Friday. In fact, on Monday investors expressed impetus as the equity’s share price soared by 7.4 per cent on high volume, to push the Index markedly higher towards a 2.1 per cent appreciation. In the following sessions the banking equity shaved-off 2.8 per cent, on much lower volume, to close the week at the Eur2.43 price level. Consequently, BOV shares have rallied by 10.6 per cent over four consecutive weeks to move towards a 9.4 per cent appreciation on a year-to-date basis. The equity was the most active this week, as total trading value amounted to Eur550,413 traded over 225,409 shares.

Likewise, Lombard Bank plc managed to advance by a remarkable 7.5 per cent to close the week at Eur2.00. The banking equity was active over three sessions in which it gathered the said gain during Tuesday and the mid-week session, while it closed unchanged on Monday. Accounting for this week’s rise, the equity managed to re-gain 11.1 per cent from its yearly low of Eur1.80 recorded in mid-October. This equity was the second most liquid equity as total trading value amounted to Eur134,255

On the contrary, HSBC Bank Malta plc cancelled last week’s gain as it drifted lower by 0.4 per cent to close at the Eur2.749 level. The banking equity commenced the week with a 1.4 per cent gain, which it than wiped-off in the following three sessions. From the same sector, Middlesea Insurance plc extended its losses with a further decline of 1.3 per cent on Tuesday to end the week at Eur0.74.

The other active financial was FIMBank plc which closed unchanged at $0.79 in the last trading session of the week after trading at an intra week high of $0.80 on insignificant volume

From the telecommunication sector, GO plc closed flat at Eur1.00 over a total of 32,268 shares which were executed across 16 deals. Meanwhile, yesterday the company announced that despite profitability for the first nine months of the year remain lower than last year, the gap from Eur12.4m recorded in the first six months of 2011 to the Eur10.5m figure in the same comparable period in 2012, was reduced following the improvement registered in the third quarter of the year. In addition, with regards to their foreign investment in Forthnet, the company stated that it is still awaiting the release of the Forthnet prospectus to determine whether or not to participate in the Eur30m increase of capital in the latter’s case.

On a positive note, both Maltapost plc and Crimsonwing plc closed the week higher following last week’s notable gains. The former added a further 2.1 per cent over 15,600 shares to close at Eur0.735, while the latter headed the list of gainers with a staggering 18.8 per cent gain over three sessions to close the week at Eur0.38.

On the other hand, 6pm Holdings plc declined by 3.1 per cent on Monday to close at £0.31, while Santumas Shareholdings plc slipped by a minimal 0.1 per cent in the last trading minutes of the week to touch the Eur1.70 price level.   

Meanwhile, the other non-movers for the week were Malta International Airport plc, RS2 Software plc and Midi plcwhich closed unchanged at Eur1.75, Eur0.60 and Eur0.25 respectively.

This article which was compiled by Atlas JMFS Investment Services Limited, does not intend to give investment advice and the contents therein should not be construed as such. Atlas JMFS is licensed to conduct investment services by the MFSA and is a Member Firm of the Malta Stock Exchange. 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 Atlas JMFS at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or [email protected]