The Malta Stock Exchange (MSE) index failed to sustain a seven-year high as it slipped by 0.44 per cent to close at 4,209.482 points. The index was dragged lower by the shares of HSBC Bank Malta plc, Malta International Airport plc (MIA), RS2 Software plc and International Hotel Investments plc (IHI). On the other hand, solid gains were recorded by the shares of Mapfre Middlesea plc (MMS) and Island Hotels Group Holdings plc (IHGH).
Total turnover stood at €1.3 million – a 25 per cent increase over last week – as activity was spread over 18 securities, of which six gained in value, seven lost ground and five remained unchanged.
MMS share price soared by 8.4 per cent to close at €2.20 – a fresh six-year high. Turnover stood at €55,000 as 14 deals of 25,761 shares were executed.
After being dormant for five months, IHGH shares spiked 7.9 per cent higher to close at €1.101 after one deal of 2,000 shares .
Go plc closed at €3.57, 2.1 per cent higher, after the week’s highest turnover of €423,000, representing 32 per cent of total turnover. This rise reflected the positive interim financial results published by Go. The group registered a pre-tax profit of €13 million, compared to €8.5 million in 2014. This was a result of initiatives aimed at growing retail revenues and reducing costs. Revenue for the period amounted to €60.7 million – a slight drop of €52,000 from the comparable period in 2014 due to a reduction in wholesale activity in its telecommunications business. This was compensated by growth in its data centre business.
Maltapost plc rose 1.3 per cent to close at €1.62.
HSBC Bank Malta plc nearly erased the previous week’s five per cent gain as it closed the week four per cent lower at €1.80. A total of 27,302 HSBC shares were traded in 18 deals as the equity turned ex-dividend on Thursday.
Bank of Valletta plc was the most active security as 143,966 shares were traded in 55 deals as it continued to trade around €2.30, closing flat at €2.299 for the second successive week.
Fimbank plc traded flat to close the week at $0.45.
Lombard Bank Malta plc closed higher for the fifth straight week as it gained 0.7 per cent to close at €2.115.
RS2 Software plc lost ground for the third consecutive week as it lost another five per cent to close at €2.04. Last Friday, after close of trading, the group published its interim financial results for the period ended June 30. The group registered a pre-tax profit of €6.6 million compared to €3 million in the comparable period in 2014. Revenue amounted to €11.5 million, a 49 per cent rise from 2014. (See report on page 31)
6PM Holdings plc closed unchanged at £0.76 for the fifth consecutive week.
International Hotel Investments plc drifted 0.7 per cent lower to close at €0.80 as nine deals of 36,722 shares were struck. IHI announced the transfer of 38,457,860 shares from IHGH to IHI, amounting to 99.68 per cent of IHGH’s issued share capital. IHI will exercise its right to require all the holders of the remaining 0.32 per cent IHGH shares to sell and transfer such shares to IHI. IHI is required to issue and allot 9,195,128 ordinary shares of €1 each in the company in favour of the accepting shareholders. Last Monday, IHI issued 2,687,960 shares in favour of part of the accepting shareholders. The remaining 6,507,168 shares will be issued in favour of the other accepting shareholders on a date due 12 months from August 10, 2015. The remaining issued share capital is to be sold and transferred to IHI by October 31, 2015. Following this, IHI intends to apply for the delisting of the entire issued share capital of IHGH.
The week’s other fallers were Santumas Shareholdings plc, Tigné Mall plc, Malta International Airport plc and Medserv plc. Santumas Shareholdings plc posted a 2.4 per cent loss to close at €2.00 after two deals of 6,490 shares.
Tigné Mall plc lost 1.2 per cent to close at €0.86. This fall contradicted the positive interim financial results published by the company for the half-year ending June 30, 2015. The company registered a pre-tax profit of €1.2 million, compared to €0.9 million in 2014. Revenue for the period under review amounted to €2.6 million, a rise of 6.3 per cent from 2014. Earnings per share increased to €0.012. The directors approved an interim net dividend payment of €0.01 per share, payable to shareholders on the company’s register as at last Monday, which will be paid on September 10, 2015. This increase was mainly attributed to an increase in rental revenue and a fall in finance costs resulting from accelerated bank loan repayments.
Malta International Airport plc opened the week down by 1.3 per cent to close at €3.90, maintaining this level throughout the week despite turning ex-dividend on Tuesday. A total of 48,600 shares changed hands in 18 deals.
Medserv plc lost 1.3 per cent to close at €2.34 as four deals worth €35,000 were executed.
Plaza Centres plc’s share price appreciated by 1.1 per cent to close at €0.96 on a single deal of 10,200 shares, thereby recovering from the one per cent drop two weeks ago.
The week’s non-movers were Simonds Farsons Cisk plc and Midi plc, which closing at €5.25 and €0.34 respectively on thin volumes.
In the corporate bond market, 23 issues were active, of which 11 rose, 11 lost ground and one closed unchanged. Total turnover fell by 12 per cent to close at €2.3 million, 47 per cent of which was registered in the newly issued 5.1 per cent 6PM Holdings plc unsecured euro 2025. The bond also recorded the week’s largest gain as it rallied by nine per cent to close at €108.90.
On the sovereign debt market, 27 stocks were traded, of which 18 rose in value and nine fell. The 5.1 per cent MGS 2022 (I) registered the highest gain as it closed 1.4 per cent higher at €127.20. Total turnover stood at €12.1 million with the most liquid stock being the 3.2 per cent MGS 2019 (V) as seven deals worth €5.1 million were executed.
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.