BOV shares rally before financial results
The Malta Stock Exchange (MSE) Index managed to re-position itself in positive territory with a 0.8 per cent appreciation, thus recouping the 0.2 per cent decline incurred in the previous week. Throughout the week the index displayed impetus as it traded higher in four sessions, while it registered a 0.3 per cent loss on Monday. Banking equities were again in the limelight, with Bank of Valletta plc shares extending their streak of gains while HSBC Bank Malta plc managed to regain a minimal percentage from last week’s depreciation. Conversely, Lombard Bank plc extended its negativity for the second week in a row.
The week witnessed the trading of 10 equities in which gainers prevailed over losers, as six moved higher, one edged lower and three closed unchanged. As opposed to the previous week turnover declined to €603,176, traded over 116 transactions which were executed across 439,679 shares.
Meanwhile, in the Government Stocks market, investors upheld last week’s positionof redeeming unrealised profits following the newly-announced stock issuance. This despite the fact that of the 23 active stocks 16 declined, five posted scant gains, while two closed unchanged. In the week, trading value was on a high note as it reached just over €21.1m, with 57 per cent being traded within the long-dated 5.25% MGS 2030. Meanwhile, on Thursday afternoon the Treasury announced the prices for the new Malta Government Stocks issuance. The 3.75% MGS 2017 was priced at €105, while the 4.3% MGS 2022 was pegged at €102.50; both are fungibility issues. Furthermore, the newly-issued 4.8% MGS 2028 was priced at €100.75.
In the Corporate Bonds market, yields opted for opposing directions as from the 24 active issues, eight traded in positive territory, seven edged lower, while nine closed flat. The 6.2% Tumas Investments plc 2017-2020 headed the list of losers with a 3.3 per cent depreciation.
In the equity market, Bank of Valletta plc emerged as the prime gainer for the week. The banking equity added 2.4 per cent to its value to close the week at €2.325. One must point out that following this week’s appreciation the equity captured six per cent over three consecutive weeks. Once again the bank had the lion’s share as total volume traded amounted to 100,798 shares which were dealt across 44 deals.
Meanwhile, yesterday after close of trading the company announced its financial results for the year ending September 30, 2012. Profit before tax amounted to €110.7m when compared to the €64.4m recorded in 2011, thus a significant 72 per cent increase. The board of directors resolved to recommend a final net dividend of €0.0845 per share and a bonus share issue of one share for every nine shares held to every shareholder appearing on the bank’s register as at January 17, 2013.
In line with its peer, HSBC Bank Malta plc managed to turn positive by gaining a minimal 0.4 per cent to close the week at €2.76. The equity was active in the first four sessions of the week as it posted a 1.8 per cent loss on Monday and Tuesday, while it gathered 2.2 per cent in the subsequent sessions. Activity was much lower than that traded in BOV as only 14 deals were registered on 22,327 shares.
Conversely, the other active financial, Lombard Bank plc, dwindled by a further 0.5 per cent following last week’s loss. The equity was active over 59,000 shares which were executed over four trades to close the week at €1.86.
Meanwhile, on Thursday the company announced that it intends to increase its shareholding in Maltapost plc, through its subsidiary company Redbox Ltd, from the present holding of 67.7 per cent to not more than 74.5 per cent.
On a positive note, GO plc shares maintained their ascending momentum by posting a further gain of just over one per cent, thus totalling to a remarkable 16.9 per cent appreciation over five consecutive sessions. The telecommunications operator was active over a total trading value of €54,860 which was dealt over 25 transactions to close at the €1 price level.
Likewise, both Plaza Centres plc and Maltapost plc closed the week on a higher note. The former rose by three per cent in the mid-week session to close the week at €0.525, while the latter advanced by 1.6 per cent on Thursday over 3,200 shares to end the week at €0.72. The postal operator’s appreciation was triggered by the announcement that Lombard Bank plc will increase its shareholding in the company through its subsidiary.
From the IT sector, Crimsonwing plc surged by 23.1 per cent over two sessions, thus placing second on a year-to-date basis with a notable 28 per cent gain. A total of 66,378 shares changed ownership to close the week at €0.32.
Meanwhile, Malta Inter-national Airport plc closed the week flat at €1.75 after trading at an intra-week low of €1.745. The airport operator was active over 45,672 shares which were dealt across nine trades.
The other non-movers for the week were Midi plc and Malita Investments plc, which closed unchanged at €0.25 and €0.50 respectively on minimal trading.
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 Stock Exchange. 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 inform-ation contact Atlas JMFS at 67, Level 3, South Street, Valletta, on telephone 21224410, or e-mail [email protected]