The Malta Stock Exchange (MSE) index fell 0.33 per cent last week, mainly due to selling pressure on HSBC Bank Malta plc shares after disappointing year-end results published last Monday. Meanwhile, Malta International Airport plc (MIA) shares rallied to a record high as investors continued to be bullish given MIA’s year-on-year positive performance and rise in dividend distribution. Simonds Farsons Cisk plc (SFC) and Tigné Mall plc share prices also reached record highs.
Last month, the index rose 0.79 per cent to end at 3,447.197, a few points shy of its nine-month high reached the previous week.
Total trading value in the equity market rose 48.8 per cent to €2.01 million, of which almost 82 per cent was in shares of Bank of Valletta plc (BOV), HSBC, and MIA. Out of the 17 traded securities, eight rose in value, three fell, while six closed flat.
Heading the list of fallers were shares of HSBC, which plunged 7.4 per cent after €587,000 worth of trading. During the week, the share price touched a record low of €1.80 in intra-day trading, but settled at €1.87 by Friday’s session. Last Monday, the bank published its financial statements for the year ended December 31, 2014. The group registered a gross profit of €52 million, compared to €90m in 2013. Net interest income was €120 million, a 3.65 per cent drop from 2013. Earnings per share (EPS) fell to 10.4 cents.
The board is recommending for the approval of the annual general meeting a final gross dividend of 2.6 cents per share, or 1.7 cents net of tax. This will be paid on April 24 to registered shareholders as at March 23. It is also recommending a bonus issue of one share for every nine shares held by registered shareholders as at April 29, and shares will be available for trading on April 30.
BOV’s share price rose 0.4 per cent after the week’s highest turnover worth €724,000, after failing to sustain an intra-week high of €2.15. At €2.119 the equity gained 1.4 per cent last month, which significantly contributed to the index’s monthly positive performance, being the largest listed equity on the MSE in terms of market capitalisation.
Lombard Bank Malta plc shares rose 1.1 per cent to retouch the multi-period high of €1.92 after relatively thin trading, that saw deals as low as €1.825 intra-week.
Fimbank plc shares closed unchanged at $0.49 after four deals of 18,800 shares.
MIA shares locked in a 9.6 per cent gain after the week’s third highest turnover worth €336,000. Last Wednesday MIA announced the group’s audited year-end results. It registered a pre-tax profit of €26.06 million compared to €22.67 million in 2013. Revenue amounted to €64.29 million, a 9.36 per cent rise from 2013. EPS rose to €12.44 cents.
The board of directors approved the payment of a final gross dividend of €0.123077 (net €0.08) per share. This will be paid to registered shareholders on April 20. In addition to the interim gross dividend already paid of €0.0461538 (net €0.03), the total final gross dividend is of €0.17 (net €0.11) per share.
SFC shares strengthened by 2.6 per cent, as five deals of 7,062 shares were struck at an all-time high closing price of €3.20.
After 24 transactions of 30,633 shares, Go plc inched 0.2 per cent higher to €2.675, just €0.025 shy of a four-month high of €2.70 reached on Tuesday.
International Hotel Investments plc (IHI) shares closed at a one-month high of €0.65 as 40,727 shares changed hands in five deals.
Tigné Mall plc resumed its upward trend, as a single deal of just 700 shares lifted the equity’s price up by 4.3 per cent to a record high of €0.70.
The week other gainer was Loqus Holdings plc, whose shares rose 0.8 per cent after three deals worth €1,200. Over the six months ended December 2014, the group’s turnover was €1.81 million, compared to €1.69 million in 2013. Its a loss for the period was €118,000 compared to a €135,000 loss for the same period in 2013.
RS2 Software plc retreating by 0.7 per cent as one deal of 8,500 shares was struck.
Island Hotels Group Holdings plc (IHGH) shares shed 0.9 per cent, to close €0.009 lower than their all-time high of €1.029. Last Tuesday, the group published its 2014 audited consolidated results, reporting a group pre-tax profit of €2.47 million, compared to €0.69 million in 2013. Revenue amounted to €36.56 million, a 19.2 per cent rise from 2013. EPS from continuing operations increased to €4.2 cents.
In view of the proposed transaction with IHI plc the directors do not propose the payment of a dividend for the year ended October 31, 2014.
Last Thursday, Malita Investments plc reported the company’s financial statements for the year ended December 31, 2014. The company made a pre-tax profit of €20.85 million compared to €10 million in 2013. The results include a favourable change in fair value on MIA and Valletta Cruise Port properties of €15.69 million.
The directors resolved to recommend the payment of a final net dividend of €0.01365 per share to be paid on April 24, to registered shareholders as at March 23. There was no change in the equity’s price.
The week’s other non-movers were Middlesea Insurance plc, Grand Harbour Marina plc, Midi plc, and Plaza Centres plc. The latter was active in a total turnover value of €115,000.
In the corporate bond market, 31 issues were active, of which 15 closed in the black, five lost ground, while 11 closed unchanged. The largest gain was in the 6.2 per cent Tumas Investments plc € 2017-2020 issue, which was up 2.6 per cent to €108. On the other hand, the 4.8 per cent Bank of Valletta plc Notes 2018 issue reversed some of the previous week’s 4.3 per cent gain, as it closed down to €106, with a yield to maturity (YTM) of just under three per cent. Last week total trading value in corporate bonds fell by 16.8 per cent to €1.26 million.
In the sovereign debt market, total turnover more than doubled to €58.25 million, of which €25.18 million was traded in the 3.75 per cent MGS 2015 as maturity nears. Long-dated issued rebounded from the previous week’s marginal declines, with the highest gain in the 4.3 per cent MGS 2033, up by 1.3 per cent, to push down the YTM to around 2.68 per cent. Yields in the eurozone have also resumed their downward trend, following Greece’s bailout extension which was backed by the German Parliament last Friday.
The Treasury announced last Monday that due to strong demand for the latest Malta Government Stock issuance, the subscription was brought to a close on the first day of subscription. Later in the week, the Treasury announced that it had received 11,701 applications from the public, representing a total aggregate nominal value of over €443.2 million. It will announce the allotment policy in due course.
This article, which was compiled by Jesmond Mizzi, managing director of Jesmond Mizzi Financial Advisors Ltd, does not intend to give investment advice and the contents therein should not be construed as such. The company is licensed to conduct investment services by the MFSA and a member of the Malta Stock Exchange and a member of the Atlas Group. 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 information contact Jesmond Mizzi at 1/2, St Joseph High Street, Ħamrun, or on Tel. 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.