The sell-off on the Malta Stock Exchange resumed as equities closed lower for the fourth week in succession. Yesterday the local index closed the session at 3,326.047 points, down by 1.43 per cent over the week. Throughout the week the MSE index moved more or less in line with its European peers, where financial markets were also down as the Greek debt problems continue to loom the world markets, despite a recovery yesterday. Locally, investors’ attention was focused primarily on Bank of Valletta plc shares as a handful of updates on the La Valette Multi Manager Property Fund were released. The equity closed the week among the worst performer. On the upside two IT firms headed the list following some corporate news announced early in the week.
Meanwhile, activity in the fixed-income markets regained some steam after an increase in turnover was recorded in both the Government Stock market and the Corporate Bond market. In the latter, activity improved for the second consecutive week as over €0.7 million were dealt across 109 deals. The 4.25 per cent FIMBank plc EUR 2013 was the most liquid while the 7.15% Mediterranean Investment Holdings plc GBP 2015-2017 was the best performer. Conversely the 7% FIMBank plc EUR 2012 – 2019 posted a 2.6 per cent decline as almost €90,000 changed hands over seven transactions. On a general note running yields in the local Government Stock market were down this week as the majority of the traded issues gained while only four stocks saw their prices heading minimally lower.
Bank of Valletta plc shares were the main contributors to this week’s decline given its weighting on the local stock market. On the week the banking equity plunged by a hefty 5.1 per cent or €0.14 as it closed the week at €2.60. Investors sold the equity mostly on Thursday and yesterday as the equity edged slightly higher on Monday, while losses escalated following the regulator’s conclusions on the La Valette Multi Manager Property Fund. In fact the MFSA has notified the bank and Valletta Fund Management that it has imposed administrative penalties totalling €347,816 in respect of the various Standard Licence Conditions. Both parties will be filing an appeal on the MFSA decision. On Thursday the equity shed 1.5 per cent while it lost a further 2.26 per cent during the week’s closing session.
Meanwhile activity in HSBC Bank Malta plc was rather subdued as eight deals of mere 6,308 shares were executed, down from 34,165 shares traded last week. The equity was also down on the week with a 1.35 per cent or €0.04 to finish the week at €2.93. Activity in the bank was spread during three trading sessions as it closed flat in the opening session, while it traded lower thereafter.
FIMBank plc shares managed to move against the trend as the bank recorded a 2.5 per cent or $0.02 gain to finish the week at $0.82 after having traded at a weekly low of $0.77. A total of 18,763 shares were dealt over 11 transactions worth $10,410.
The top performers this week emerged from the IT Sector were similar gains were posted by 6PM Holdings plc and RS2 Software plc. During the week, at the Annual General Meeting the shareholders of RS2 considered and approved the resolutions brought forward to the agenda amongst which was the declaration of a net final dividend of €0.032 per share. On Wednesday the equity climbed six per cent after having gained a mere 0.2 per cent during the previous session. Since the beginning of the year the equity returned almost 11 per cent.
6PM Holdings plc was the week’s best performer as the equity gained 6.67 per cent or £0.02. A total of 120,000 shares exchanged ownership across five transactions worth £39,653. On Monday the company announced that it has subscribed to 25 per cent of the issued share capital in emCare360 Limited a new company incorporated in Malta, whose trading activity is to engage in innovative strategies for health care delivery and primarily to develop, implement and deliver electronic and mobile tele-health, tele-care and health care information services to private and public entities and also to individuals both in Malta and overseas.
On the contrary Crimsonwing plc shares lost just over five per cent or almost €0.02 over five deals of 16,670 shares.
Plaza Centres plc also closed the week in positive territory with a significant 5.3 per cent gain or €0.09 gain as 10,000 shares were dealt over three deals. MIDI plc shares were also up this week with a meagre 1.15 per cent to end the week at €0.44.
Maltapost plc shares gained nearly three per cent or €0.03 as the postal operator closed the week under review at €1.05. However, turnover was on the low side as slightly over 5,000 shares were dealt over four transactions.
Malta International Airport plc shares closed down at €1.73 hence down by 0.6 per cent. Five deals worth €41,000 were executed. Meanwhile Go plc shares closed slightly lower with 0.4 per cent decline at €1.365 while International Hotel Investments plc shares closed flat at €0.82.
Grand Harbour Marina plc shed 0.61 per cent as the equity finished the week at €1.968 while Santumas Shareholding plc lost 2.6 per cent over one deal of 100 shares.
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.
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