Index strengthens as government stocks fall
MSE Trading Report for week ending November 11, 2016
The MSE Index erased last week’s loss, with a 0.9 per cent increase, closing the week at 4,557.203 points. A total of 14 equities were active, the majority of which closed in negative territory, five gained ground and three remained afloat. For the second consecutive week, turnover in the equity market declined from €2.11m to €1.75m.
Bank of Valletta plc shares oscillated between positive and negative ground, closing off the week 1.1 per cent higher at €2.334. The equity registered this week’s highest turnover of €760,482, spread over 101 transactions, as investors acquired the shares ahead of the equity turning ex-dividend on Tuesday.
On the same note, seven trades amounting to 19,163 shares in HSBC Bank Malta plc managed to curb in almost half of last week’s loss, closing the week at €1.85, on low volumes.
A negligible 0.6 per cent was shaved off the share price of FIMBank plc, closing the week at $0.89, with a total turnover of $58,744, spread over seven trades.
In the same sector, a single trade of 1,626 shares in Lombard Bank Malta plc, saw its price contract by 3.6 per cent, closing the week at €2.101.
Meanwhile, Mapfre Middlesea plc shares registered some solid gains, pushing the equity 10.3 per cent higher to close the week at €2.25 – with a total turnover worth €18,845, spread over three trades.
Five trades amounting to 81,300 shares in Simonds Farsons Cisk plc, managed to recoup part of last week’s loss, recovering 1.5 per cent, closing the week at €6.60.
Elsewhere, Malta International Airport plc shares recovered a substantial part of the loss incurred on Monday, to close the week 0.5 per cent in the red at €4.08. Total turnover in this equity amounted €144,773, spread over 18 transactions. Earlier this week, the company announced a 10.4 per cent growth in the month of October, when compared to the same monthlast year. Moreover, over the summer period, a year-on-year growth of 6.3 per cent was recordedin 2016.
GO plcshares advanced by almost one per cent during the week, closing at €3.25, with a total turnover of €87,414, spread over 16 trades. On the other hand, for the second consecutive week, Medserv plc shares closed in the red, at €1.48 – total turnover amounted to €45,512, spread across seven trades.
Four transactions of 17,471 shares managed to drop the price of International Hotel Investments plc by 1.4 per cent to close the week at €0.65. Last Friday, the company announced that it will be issuing a bond issue of €40 million maturing in 2026 in replacement of two existing issues namely, the 6.25% IHI plc 2017-2020 and the 6.5% IHG plc 2017-2020, which will be redeemed on April 9, 2017 and July 1, 2017 respectively. Preference will be granted to existing bond holders as at November 17, 2016.
RS2 Software plcshares enjoyed a positive start to the week, losing ground later in the week, contracting by 1.9 per cent to close the week at €1.55, with a total turnover of €51,430, spread over 13 trades.
Elsewhere, low volumes were registered in Malita Investments plc, Malta Properties Company plc and Loqus Holdings plc, closing the week unchanged at €0.865, €0.60 and €0.165, respectively.
In the corporate bond market, a total of 34 issues were active during the week, reaching a turnover of €1.04m ofwhich the majority closed unchanged, nine closed higher, while ten lost ground.
In the sovereign debt market, turnover spiked to the level of €20.2m. The increase was mainly triggered by the high trading volume registered in the newly listed 2.1% Malta Government Stock (MGS) 2039 (i) r amounting to 58.5 per cent of the total sovereign debt turnover, closing the week at €103.50 after touching a high of €107.01. This was also the only stock to register a gain out of the twenty-five active issues as hefty declines were witnessed in longer dated issues. The long dated issues experienced a correction as the 2.4% MGS 2041 (I) declined 5.17 per cent closing at €105.26 as other issues fell between 2.5 per cent and 4.25%.
Bank of America Merrill Lynch reported that globally more than $ 1 trillion was wiped off the bond markets following the election result in the United States, while global equities added $ 1.3 trillion as investors digested what President elect Donald Trump said prior to the election in that it is anticipated that inflation will rise at a quicker pace, thus having an impact on long dated bonds.