Following three consecutive weeks of declines, the Malta Stock Exchange (MSE) Index rebounded by 1.07 per cent, to close at 3,767.658 points. The index’s positive performance was buoyed by strong gains across shares of Bank of Valletta plc (BOV) and HSBC Bank Malta plc (HSBC) – which in aggregate, represent just above 44 per cent of the index’s overall market value. Tigné Mall plc and RS2 Software plc (RS2) also posted solid gains, to end the week at all-time high closing prices.
Nevertheless, the index ended the month of April down by 0.22 per cent, primarily as a result of losses across shares of BOV, Go plc and International Hotel Investments plc (IHI), which more than offset gains registered in HSBC Bank Malta plc, Middlesea Insurance plc, Simonds Farsons Cisk plc (SFC) and RS2. The MSE index is up 13.1 per cent in the first four months of 2015.
Total turnover last week declined by 51.9 per cent to €743.9k, as 15 equities were negotiated – of which four gained in value, eight lost ground, while three closed unchanged.
In the banking industry, BOV shares last week recouped some of the losses recorded during the month of April, as 29 trades of 83,862 shares led to a 3.8 per cent appreciation in price – ahead of the bank’s interim financial results for the six months ended March 31, 2015. The results, announced last Thursday’s after close of the trading session, outline a 15.4 per cent increase in the group’s net interest income, when compared to the same period last year. Meanwhile, profit before tax stood at €58.8 million, as opposed to the €50.7 million registered during the six months ended March 31, 2014. Earnings per share (EPS) increased to €0.112. Furthermore, the board of directors declared an interim dividend of €0.039 (gross) per share – payable to shareholders on the company’s share registrar as at May 12, 2015. The dividend pay-out is equivalent to the same gross interim dividend of March 2014, as restated for the bonus issue of January 2015. The banking equity’s share price closed the week at €2.294.
In the same sector, shares of HSBC emerged from negative territory, as 2.3 per cent advancement over the week led to a monthly gain of 1.4 per cent. HSBC shares were traded over the third highest turnover for the week, worth €92.4k, closing the month at €1.871. The movement in the share price has been adjusted to reflect the bonus issue which was allotted to eligible shareholders during the week.
Trading in the opposite direction was Lombard Bank Malta plc, whose shares posted a weekly decline of 2.6 per cent. The banking equity was active between the €1.85 and €1.94 price band over 11 transactions of 23,020 shares, to close the week at the €1.90 price level.
The main laggard was IHI as its share price shaved off 1.5 per cent, following eight deals of 70,000 shares, to end the week at its two-month low of €0.68. Shares of Malta International Airport plc (MIA) were traded over 14 transactions of 12,000 shares, which dragged the equity’s price down by 0.6 per cent.
Malita Investments plc ended the week at its seven-week low of €0.91 over a total trading volume worth €67.4k. The special purpose vehicle dipped by 5.2 per cent, to end the month down 2.2 per cent.
The postal services company, MaltaPost plc, contracted by two per cent as a single deal of 2,513 shares was struck at the €1.421 price level. The company’s share price ended the month of April up by 0.7 per cent, after failing to sustain an all-time high closing price of €1.45 reached during the month.
Loqus Holdings plc traded for the first time in more than a month, witnessing two trades of a mere 150 shares – to end the week down by 13.6 per cent at €0.121.
Medserv plc shares retreated from an all-time high of €2.05, after declining one per cent on three trades of 6,625 shares, closing the week at €2.03.
The other faller for the week was Midi plc, as five transactions of 80,600 shares led to a 3.5 per cent drop in price. This follows the group’s financial results for the year ended December 31, 2014. The group registered a loss before tax of €2.2 million, compared to a €1.5 million loss registered in 2013. Revenue for the period under review amounted to €13.3 million, an increase of 70 per cent from 2013. Revenues from the development and sale of property amounted to €11.8 million.
This figure mainly relates to the sale of the T14 site located at Tigné Point for a consideration of €11.7 million to Mid Knight Holdings Limited, a joint venture company between T14 Investments Limited (a MIDI wholly owned subsidiary) and Benny Holdings Limited.
Tigné Mall plc was second to none, to close the week at a fresh record high €0.80 on a relatively thin volume.
In the IT services sector, buying interest in shares of RS2 pushed the equity’s price higher, to its all-time high of €3.12, as investors continued to digest the company’s recently announced annual results.
The equity was active over the second highest turnover for the week, worth €162k. Meanwhile, a single trade of 11,000 shares in 6PM Holdings plc left its share price intact at its all-time high of £0.76. The other non-movers for the week were Middlesea Insurance plc and Go plc.
Simonds Farsons Cisk plc announced that the group registered a profit before tax of €8.2m for the year ended January 31, 2015, compared to €6.9 million in 2014. Revenue for the period amounted to €79.2 million, an increase of 1.1 per cent from 2014. EPS increased to €0.27. The board has resolved to recommend a final net dividend of €0.0666 per share, to be paid by not later than June 26, 2015, if approved by the AGM scheduled on June 25, 2015.
In the corporate bond market, total turnover shrunk by 50.2 per cent to €388.1 million, as 21 issues were traded – of which four rose in value, six fell out of favour, while 11 closed unchanged.
Significant declines were noted across the 6% Island Hotels Group Holdings plc € 2024 and the 7.15% Mediterranean Investments Holding plc Euro 2015-2017 issues, down by 1.8 and 3.1 per cent, respectively. The latter was negotiated on a very thin volume at a price of €92.1, whereas the bond of IHGH was hovering at a price close to €108.
On the sovereign debt front, all of the 26 traded government stocks, all but three, headed south and with the largest declines recorded across those issues with the furthest date to maturity and paying a relatively lower coupon.
In fact, the biggest decline was registered within the 3% MGS 2040 (I) issue, whose price shed 1.9 per cent to close at €116.29 – which equates to a yield to maturity of around 2.16 per cent. Yields across Europe have also ticked higher, particularly across German Bunds, which rebounded from their record low yielding levels witnessed just two weeks ago.
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: 21224410 or e-mail jesmond.mizzi@jesmondmizzi.com.