Equity index closes higher on increased turnover

MSE Trading Report for week ending July 6, 2018

The MSE Equity Total Return Indexwas back in the green, as a substantial gain of 0.871% was registered, to close the week at 8,712.331 points. In the equities market, 17 issues were active, of which six traded lower, while eight ticked higher. Total turnover increased sharply compared to the previous week, as it exceeded the €2 million mark over 182 deals. Two of the main catalysts for this performance were the banking industry and Medserv plc.

In the banking industry, Bank of Valletta plc fully recovered last week’s loss in value, climbing 0.87% to recapture the €1.745 price level. The equity traded heavily as 119,751 shares were exchanged across 47 transactions.

Its peer, HSBC Bank Malta plc also generated a substantial turnover of €138,135. However, the equity closed unchanged at €1.84 after two trading sessions mid-week cancelled each other out. The bank announced that its board is scheduled to meet on August 6, 2018, to consider and approve the group’s and the bank’s interim accounts for the 6-month period ending June 30, 2018, and also to consider the payment of an interim dividend.

Fimbank plc was the top performer in the industry as it hiked 6.93% to reach the price of $0.54. Participation was rather limited compared to the other banking equities, as just four transactions of a combined 13,590 shares changed hands during the week.

In the same sector, the board of Lombard Bank Malta plc announced that they shall be meeting on August 23, 2018, to consider and approve the group’s and the bank’s interim financial statements for the first half of 2018. No trades were registered in the equity this week.

In the oil sector, Medserv plc registered this week’s top performance, as the price per share surged by 15%, to close at €1.15. This performance was the result of five individual trades of a combined total of 20,000 shares.

Telecommunications company, GO plc, continued to lose ground, as a decline of 1.2% in the share price was registered, to close at €3.30. A total of 18 transactions were executed in which 191,045 shares were exchanged.

International Hotel Investments plctraded on slim volume as a couple of deals of 1,330 shares had no lasting effect on the closing price of €0.66.

Malta International Airport plc managed to break the €4.98 price resistance, ultimately closing 1.41% higher at €5.05. Trading volume amounted to 84,090 shares spread across 17 deals.

Conversely, MaltaPost plc shed 2.35%, to close at €1.66 as 3,965 shares changed hands over six transactions.

Insurance firm, GlobalCapital plc held its Annual General Meeting on Wednesday, June 27, 2018 during which all resolutions on the agenda were approved. In terms of trading, a couple of transactions on slim volume were recorded, dragging the share price down to a low of €0.28.

RS2 Software plcextended its negative streak as the equity slipped by 3.23%, to close at €1.20. A total of 30,970 shares were exchanged over 12 deals.

In the food and beverage sector, Simonds Farsons Cisk plc gains 3.62%, reaching a four-month high of €7.20 before retracting to €7.15, over ten deals of 24,213 shares.

On Friday, PG plc announced that extensive construction works for the extension of the Zara shopping complex located in Sliema shall commence next week. As a result, the complex shall be temporarily closed for a period of three months starting from Monday, July 9. The exact date of the reopening of the shopping complex will be communicated to the public at a later stage. By Friday the equity recovered from a decline earlier in the week and unchanged at €1.33. Trading volume totalled 14,850 shares across two trades.

Loqus Holdings plc topped the list of fallers this week as it plunged 30% to a low of €0.07. A turnover of €4,947 was generated over four deals struck on Friday.

In the property sector, the price of MIDI plc soared to an all-time high having gained 2.94% on the week, closing at €0.49. The equity was very liquid as 261,229 shares changed ownership over 14 trades.

Trident Estates plcbounced back from last week’s negative performance by gaining 3.15%, to recapture the €1.31 level. A total of 21,500 shares traded over five deals.

Malita Investments plccontinued last week’s positive trend as it recorded another price increment of 2.89% to end Friday’s session at €0.89. This gain was the result of five transactions in which 47,567 shares changed hands.

Malta Properties Company plc was the only equity in the property market to trade in negative territory, as it was down by 3.85% to €0.50. The equity was one of the most liquid as 312,310 shares changed hands over 14 deals.

Plaza Centres plc announced that its board is scheduled to meet on July 24, 2018 to consider and approve the interim financial statements for the first six months of 2018. The equity was not active this week.

In the corporate debt market, a total of 39 issues were active as turnover increased marginally to €1.9 million.

Heading the list of fallers was the 5.1% 6PM Holdings plc Unsecured € 2025,with a sizeable 6.58% price slump to close at €92.95. The bond finally traded on the Malta Stock Exchange this week, after a lengthy spell of suspension from trading, due to failure to publish its audited financial statements.

At the other end of the spectrum, the 3.5% Bank of Valletta plc € Notes 2030 S2 T1 extended last week’s gain by a further 1.1%, as it closed at €99.99.

Yields in the sovereign debt market had mixed fortunes as the 13 longest-dated issues all posted gains, while ten shorter-dated MGS’s headed south.

The 2.1% Malta Government Stock 2039 (I) posted the largest weekly gain, as it climbed by 1.19% to €101.89.

On the other hand, the 5.5% Malta Government Stock 2023 (I) registered the largest drop in value, a decline of 0.69%, to close at €124.83.

This article which was compiled by Jesmond Mizzi Financial Advisors Limited, does not intend to give investment advice and the contents therein should not be construed as such. The Company is licensed to conduct investment services by the MFSA and is a Member of the Malta Stock Exchange and a member of the Atlas Group. 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 Jesmond Mizzi Financial Advisors Limited at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email info@jesmondmizzi.com


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