The Malta Stock Exchange (MSE) Index ended the first week of September on a positive note extending gains by 0.45 per cent, to close at 4,231.072 points. Eight equities propped up the index, while declines recorded across large capitalised securities, namely, Malta International Airport plc (MIA) and International Hotel Investments plc (IHI) weighed the index lower.
The upward move across local equities was witnessed over a turnover worth €1.56m – a week-on-week decline of 12.8 per cent. In total, 14 equities were active, of which eight appreciated, four lost ground and two closed unchanged.
Medserv plc shares rallied by 16 per cent to €2.90 last Tuesday. On the back of continued market interest, the share price continued on its upward trajectory to close the week 18 per cent higher at a record high of €2.95. The equity was active over 18 deals of 59,500 shares.
Elsewhere, Plaza Centres plc shares notched their fourth consecutive weekly gain, as four trades of 28,762 shares pushed the share price to a fresh three year high, closing at €1.05 – up by four per cent.
Meanwhile, RS2 Software plc (RS2) shares achieved an all-time high of €2.37, thus appreciating by three per cent on the week over the third highest turnover, amounting to €256k. In the same line of business, the share price of 6PM Holdings plc recouped its previous week’s 3.4 per cent decline as the equity closed back at the £0.735 price level – as 61,234 shares changed hands across 10 deals.
In the banking industry, Lombard Bank Malta plc (Lombard) shares hit a 45-month high at €2.15, recording a week-on-week increase of 1.7 per cent as nine deals of 29,302 shares were struck. Meanwhile, HSBC Bank Malta plc shares moved up by a further 0.6 per cent as its share price closed at €1.81, over seven deals of 21,874 shares. During the week, the company announced that Mark Watkinson will be relinquishing his post as Chief Executive Officer with effect from November 2, 2015. Mr Watkinson will be replaced by Mr Andrew Beane, who is currently Chief of Staff to the CEO of HSBC Europe, Middle East & Africa. Mr Beane will take up his new position subject to regulatory approval.
In contrast, Bank of Valletta plc (BOV) shares maintained the €2.25 price level, having traded over the highest turnover of the week, worth €322k – representing 21 per cent of total turnover.
Also amongst the list of gainers were MIDI plc shares and the telecommunications company, GO plc. MIDI shares edged 0.9 per cent higher, to close last week’s trading session at this year’s high of €0.353. The company announced its half-yearly financial report covering the six months ended June 30, 2015. MIDI registered a loss before tax of €0.64m which is expected to be reversed once the sale of Q1 apartments (the new block) is processed. Meanwhile, profits after tax amounted to €3.22m, due to a net deferred tax credit of €3.9m. Revenue for the period under review amounted to €6.63m, compared to €782K for the same period in 2014.
Meanwhile, the share price of GO moved up by 0.4 per cent on the week, to close at €3.495, as 14 trades of 28,959 shares were executed.
Conversely, 12 trades of 47,718 shares in Malta International Airport plc (MIA) dragged the equity 1.3 per cent lower, to close the week at €3.84.Last Friday after close of trading, MIA published the traffic results for August whereby it announced that traffic reached an all–time high for the month with 585,218 passenger movements.
Mapfre Middlesea plc shares failed to recoup the previous week’s 4.4 per cent drop, as the equity shed a further 1.4 per cent to close the week at €2.12. The decline was witnessed across a turnover of €15.8k.
Over the second highest turnover for the week, worth €276k, the share price of International Hotel Investments plc slipped by 0.6 per cent to close at €0.78, while Malita Investments plc shares partially reversed its previous week’s gain as the share price minimally fell by 0.2 per cent, to close at €0.938. The special purpose vehicle was negotiated across three trades of 19,950 shares.
No movement was noted in the share price of Simonds Farsons Cisk plc (SFC) as the equity remained faithful to its all time high of €5.55. The equity was active on the lowest volume of the week – 4 deals of 1,150 shares. During the week, three listed companies, namely, SFC, MIA and BOV have announced the execution of a share purchase agreement for the sale of their shares in Valletta Cruise Port plc (VCP). SFC through its holding in FSG Company Limited (in which it owns 50 per cent), together with MIA and BOV have sold 30.97 per cent shareholding in VCP to Global Isletmeleri A.S. (GLI), a 100% subsidiary of Global Yatırım Holding A.S. The successful completion of the transaction is subject to legal and regulatory approvals and the waiver of the pre-emption rights by the remaining shareholders of VCP to allow the transaction to be completed in accordance with the terms agreed in the share purchase agreement. The total consideration for the shares will be announced following the successful completion of the conditions precedent and closing of the transaction.
Grand Harbour Marina plc published the half yearly report for the period ending June 30, 2015. The Group reported a profit before tax of €0.08m, compared to €0.02m registered in 2014. The company reported an income tax charge for the period ended June 30, 2015 of € 118k - thus resulting in a loss after income tax of €0.037m.
On the corporate bond front, 28 issues were active of which 13 appreciated in value, 12 declined and three closed the week unchanged. Leading the corporate bond market with the strongest performance for the week was the 6% Mediterranean Investments Holding plc Euro 2021 issue having gained 1.4 per cent as five deals of 37,000 nominal were traded. Meanwhile, the 5.8% International Hotel Investments plc 2023 issue recorded a drop of four per cent, as the bond price fell to €108 over thin volume. The 5.1% 6PM Holdings plc Unsecured € 2025 issue was the most liquid issue for the week, representing 42 per cent of a total turnover which stood at €957k – down by 45 per cent from the previous week.
In the sovereign debt market, total turnover increased by 55.9 per cent to €3.17m. During the week, 23 issues were traded, of which eight gained ground while 15 fell out of favour. Changes in yields throughout the week mirrored activity across the broader European sovereign debt market, as higher yields by mid-week were reversed by Friday’s closing session. This followed a lower revision in Europe’s growth figures and inflation expectations over the coming two years as outlined by the President of the European Central Bank, Mr. Mario Draghi, last Thursday – pushing bond prices higher and yields lower. Moreover, a sell-off within the more volatile equity market last Friday put further pressure on yields across high quality bonds.
This article, 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, Hamrun or on Tel: 21224410 or e-mail: jesmond.mizzi@jesmondmizzi.com.