HSBC gained 2.8 per cent today to €1.87 partially recovering from the losses in each of the four sessions held earlier this week following the publication of the FY2014 financial results on Monday morning.

The equity ended the week as the worst performer with a decline of 7.4 per cent after touching a fresh multi-year low of €1.80 yesterday.

On Monday, HSBC Malta reported a 42 per cent decline in pre-tax profits to €52 million due to lower income, higher expenses as well as a steep rise in impairment charges.

As a result, the total gross dividend in respect of the 2014 financial year also dropped by 48.1 per cent to 7c1 per share. The directors recommended a one-for-nine bonus issue to all shareholders as at the close of trading on April 27.

The 2.8 per cent increase by HSBC was the main contributor to the 0.5 per cent uplift in the share index to 3,447.197 points.

However, the equity benchmark still closed the week 0.3 per cent lower as the sharp decline in HSBC offset the positive performance by Malta International Airport, International Hotel Investments and three of the other smaller capitalised companies.

Lombard also ended today’s session in positive territory gaining 1.1 per cent to close at the €1.92 level on a single trade of 999 shares. The bank is expected to announce its FY2014 results on March 9.

Malta International Airport gained an additional 0.4 per cent to another all-time high of €2.86, albeit on shallow volumes of just 3,302 shares.

MIA was the star performer this week with a rise of 9.6 per cent after the company announced that it generated a 15 per cent increase in pre-tax profits to €26.1 million and the directors recommended a final gross dividend of 12c31 per share representing a 77.8 per cent increase over last year’s final dividend.

The total dividend declared in respect of the 2014 financial year amounts to a record 16c93 per share (net: 11c), an increase of 46.6 per cent compared to the dividend distribution in respect of 2013. Shareholders as at the close of trading on April 16 will be eligible to receive the final dividend.

Loqus Holdings edged 0.8 per cent higher to 12c1. On Tuesday, the ACL-listed company reported a seven per cent increase in revenue, which coupled with a four per cent decline in operating costs, resulted in a 44 per cent improvement in EBITDA to €0.17 million.

However, after accounting for depreciation charges and finance costs, the company incurred a loss of €0.12 million, which nonetheless, is 13.1 per cent lower than the loss for FY13.

Simonds Farsons Cisk maintained its all-time high of €3.20 level across 6,662 shares. Similarly, Plaza Centres held on to its multi-year high of 85c as a further 51,000 shares changed hands at this level ahead of the publication of the full-year results on March 18. On the other hand, FIMBank closed again at its all-time low of 49cUS on activity of 18,800 shares.

International Hotel Investments also ended the session unchanged at 65c on increased volumes of 31,165 shares.

Meanwhile, three other equities closed in negative territory. Bank of Valletta edged minimally lower to €2.11,9 on activity of 44,032 shares and Middlesea Insurance slipped one per cent to the €1.01 level on a single deal of 2,000 shares.

GO failed to maintain the €2.70 level and shed 0.9 per cent to €2.67,5 on low volumes.

The Rizzo Farrugia MGS Index gained 0.1 per cent to a new record level of 1,133.312 points despite the uplift in the benchmark yields back to the 0.34 per cent, possibly on the back of some risk appetite after the German parliament approved the extension of Greece’s bailout deal.

In the coming days, the Treasury is expected to publish the issue statistics and allocation policy for the recent Malta Government Stocks issue.

Yesterday, the Treasury announced that it received a total of 11,701 applications for a total value of €443.2 million compared to the €180 million on offer.

www.rizzofarrugia.com

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