MSE Trading Report for week ending October 25, 2013

 

The Malta Stock Exchange (MSE) Index extended last week’s 0.3 per cent loss by a further 0.55 per cent closing at 3,447.295 points. Throughout the week, 17 issues were active, of which nine rose in value, three lost ground, while five closed unchanged. The listed IT companies registered substantial gains week-on-week, followed by most of the banking equities. However, the large capitalised International Hotel Investments (IHI) plc and GO plc hindered the index from closing the week above ground.   

 

Turnover in the equity market increased further, totalling €1.13m, – an increase of 10 per cent. The total number of shares traded was 1.02m, which exchanged hands over 180 deals.  

 

On the sovereign debt front, selling pressure seemed to hold on short-dated bonds, whereas buying interest on longer-dated issues reigned – leading to falling yields. Turnover for the week decreased by 64 per cent to €10.3m, spread over 23 issues, given that next Monday the general public may apply for the two new issues announced last week. The prices for these issues were announced on Thursday – both offered at a premium. The 3% MGS 2019 (III) F.I. will be offered at €103.75, whereas the longer-dated 4.65% MGS 2032 (I) will be offered at €100.25.

 

In the corporate bond market, turnover increased from €892k to €1.13m, with activity taking place across 21 stocks, of which all, but one, traded upward or closed unchanged. The 5.6% GlobalCapital plc € 2014/16 was the best performer, closing the week 4.9 per cent higher at €85. During the week, both IHI and Gasan Finance Company plc announced the issuance of a new bond. IHI announced a €10m 5.8% bond redeemable in 2023, while Gasan announced a €25m, 4.9% bond due in 2019-2021 – both issues will be giving preference to existing bond holders.

 

In the more volatile equity market, RS2 Software plc headed the list of gainers, sustaining its upward trend, once again reaching a record high of €2.15. The equity traded throughout the entire week, over a total amount of 50,221 shares. On a week-on-week basis the stock price soared by 7.5 per cent. Crimsonwing plc also registered a substantial increase in price of 1.9 per cent, to close the week at €0.841. The share traded in mixed direction on four sessions, with the highest gain of 2.4 per cent registered in Tuesday’s session – a new record high of €0.845.

 

All banking equities registered gains, with the exception of FIMBank plc, which lost 1.1 per cent to $0.945 on a mere 7,200 shares. The top performing banking equity this week was Lombard Bank plc, gaining 2.2 per cent on Tuesday’s session, as 12,090 shares exchanged hands over three transactions, closing the week at €1.90.

 

The shares of Bank of Valletta ranked second, advancing by 1.6 per cent to €2.53 on considerable turnover and marking the sixth consecutive gain on a week-on-week basis. On Monday, the company announced that its Board of Directors are scheduled to meet on Thursday, October 31, to consider and approve the group’s and bank’s audited financial statements, and the final dividend to be recommended to the bank’s annual general meeting.

 

Meanwhile, the share price of HSBC Bank Malta plc appreciated by 0.4 per cent, to partially offset last week’s 1.1 per cent loss, and closing the week at the €2.63 price level, on lower turnover than the previous week.

 

Simonds Farsons Cisk (SFC) plctraded during two sessions, closing the week unchanged at €2.80 as the loss made on Tuesday was fully recouped on Thursday. Similarly, Tigne Mall plc offset losses made on Tuesday during Wednesday’s trading session, to close unchanged at €0.512 and a total volume of 63,900 shares.

 

IHIdragged down the index as its share price plummeted by 9.6 per cent, as 29,187 shares led to a contraction in the stock’s price of €0.07 to the €0.75 level.

 

The third equity to trade in negative territory this week was GO, losing a further 0.7 per cent, following last week’s 0.3 per cent drop. The equity touched mid-week lows of €1.45, after which most of the losses were recouped during yesterday’s session, to close at €1.48.

 

The highest turnover in terms of volume traded was noted in MIDI plc- 296,000 shares, representing 29 per cent of traded shares. Increased demand in the equity resulted in a 6.3 per cent increase in share price, to close at €0.255.

 

Malta International Airport (MIA) plcrebounded slightly from last week’s 2.5 per cent decline, as it closed the week 1.5 per cent higher at €2.00. Traded volume was relatively high at 64,950 shares, up from last week’s turnover.

 

Plaza Centres plcrallied by 4.5 per cent to €0.585 on Monday over two deals of 2,027 shares.

 

Another positive performer this week was Medserv plc, completely reversing last week’s loss, to settle once again at the €3.30 price level, on a single trade of 1,450 shares.

 

Other non-movers for the week were Middlesea Insurance plc,MaltaPost plc and Malita Investments plc, to close at €0.85, €1.05 and €0.52 respectively.