IHI lifts index higher
MSE Trading Report for week ending November 29, 2013
The Malta Stock Exchange (MSE) Index completely rebounded from last week’s 0.42 per cent decline, despite that a larger number of securities closed the week in the red. In fact, the index closed the week up by 0.47 per cent at 3,541.448 points, following substantial gains in International Hotel Investments plc (IHI) during Friday’s session. On the contrary, in the banking sector, both Bank of Valletta plc (BOV) andHSBC Bank Malta plc (HSBC) came under another bout of selling pressure.
Out of the 17 traded equities, four advanced, eight lost ground, while five closed the week unchanged. The index is once again back on track, locking in a year-to-date gain of 10.26 per cent. Turnover for the week shrunk by 24 per cent to €1.29m, with a volume of just over 1m shares being traded across 152 deals.
In the sovereign debt market, turnover during the week decreased by half to €1.5m, with the number of active issues standing at 21 – of which 10 declined, while 11 inched higher. Most of the losses were incurred in short-dated issues, as opposed to gains, which were primarily registered in long-dated issues. The 6.6% MGS 2019 was the most liquid issue for the week, with trading activity accounting for more than 20 per cent of total trading value.
On the corporate bond front, 20 issues were traded, of which 11 appreciated, four contracted, whereas six closed unchanged. On Monday, Gasan Finance Company plc announced the allocation of the recently issued€25m- 4.9% Gasan Finance Company plc Bonds 2019-21, which are expected to commence trading on Monday December 2, 2013. The best performer for the week was the 7.5% Mediterranean Investment Holding Plc € 2015, putting on 1.4 per cent to €103.
The equity which buoyed the index from losing further ground – IHI – soared by 8.4 per cent to €0.84 – marking its fourth weekly gain, following three months of losses during August to October.
In the banking sector, both BOV and HSBC continued to trade lower, with the latter dipping by a further 2.3 per cent to €2.54, as 62,730 shares were exchanged over 26 transactions. This decline worsened the year-to-date performance to a negative 5.9 per cent. On the other hand, BOV, which dipped by 0.5 per cent to €2.61, has so far registered a gain of just over 20 per cent. The banking equity was active across 38 trades of 72,196 shares. Meanwhile, the other active banking equity was Lombard Bank Malta plc, which strengthened by 1.6 per cent to €1.90 – dealt on four trades of 9,000 shares.
RS2 Software plc (RS2)was the only equity to lock in a 2.2% gain in the IT sector, ending the week once again at its all-time closing high of €2.35 – traded over 14 transactions of 53,670 shares. Its peer, Crimsonwing plc mid-week announced that, following competitive bids, it managed to acquire a number of contracts with new clients – some of which commit the parties for an initial period lasting for at least three years. The total value of such contracts surpasses €4.5m. The IT firm has also published its interim financial statements, registering a profit before tax of €770k, as opposed to the €550k registered in the same comparable period in 2012. Revenue for the period under review increased by 13.7 per cent to €9.86m. Despite these positive results, the equity’s share price closed unchanged at €0.85, after failing to hold onto its all-time high of €0.87 reached during Thursday’s session – 48,000 shares exchanged hands over seven trades. In the same line of business, 6PM Holdings plc closed unchanged at£0.70.
GO plcextended gains by a further 2.5 per cent to €1.65, as it recorded gains on four out of the five days on which the security was active – marking a year-to-date gain of just under 39 per cent. The telecommunications company was also the most liquid issue, as 253,625 shares worth €413k changed hands on 26 trades.
On a sour note, the worst performer for the week was Loqus Holdings plc, which was active for the first time this month, and declined by 20 per cent to €0.08, on a single transaction of 1,133 shares. Similarly, Island Hotels Group Holdings plc, was active following an entire month of inactivity. Two transactions of 15,350 shares were struck, leading to a drop of 3.3 per cent in the equity’s share price, to close at €0.899.
Malita Investments plcclosed down by 1.9 per cent to €0.521, as the equity witnessed four trades of 249,520 shares.
Malta International Airport plc (MIA)on Thursday announced that its 40 per cent shareholder, Malta Mediterranean Link Consortium Limited (“MMLC”) that SNC-Lavalin, a shareholder in MMLC, advised MIA that it is currently in discussions with third parties to dispose of its shares in MMLC, amounting to 38.75 per cent of the issued share capital of MMLC. MIA closed the week down by three per cent to €2.08.The fall in price was registered pre this announcement and no price movement were noted during Friday’s session.
Two other equities underperforming the index were MaltaPost plc and MIDI plc. The former retreated from its all-time closing high price of €1.12, as one transaction of 4,060 shares during Wednesday’s session pushed the price down by 1.8 per cent to €1.10. Meanwhile MIDI dragged by a further 0.4 per cent, to close the week at €0.254, as a 3.9 per cent gain on Thursday, was then reversed by a 4.2 per cent loss in Friday’s session – 132,000 shares were traded over six transactions.
Other non-movers for the week were Plaza Centres plc, Medserv plc, and Tigne Mall plc, closing the week, respectively, at €0.57, €3.35 and €0.505.