The Malta Stock Exchange (MSE) index reached a seven-and-a-half-year high of 4,469.498 points intra-week, but then closed the week at 4,444.40 points – a week-on-week gain of 0.2 per cent. Solid gains were recorded by RS2 Software plc, Mapfre Middlesea plc and Grand Harbour Marina plc (GHM) shares but weakening share prices in GO plc and Bank of Valletta plc (BOV) weighed down the index.
Total turnover amounted to €1.43 million – up by 1.4 per cent from the previous week, as activity was spread across 14 equities, of which six gained ground, while fallers and non-movers tallied at four.
On the back of reported positive performance, RS2 shares rallied by 8.5 per cent to notch a new all-time high for the third consecutive week, to close at €2.82 as 39 deals of 57,232 shares were struck. In its interim directors’ statement last Thursday, the company outlined that demand for the group’s services continues to be significant as it increases its implementation and service offering to clients in Europe, Latin America and Asia Pacific. Higher interest is also evident from other regions such as the Middle East and Africa. The group has a positive outlook for the year with new potential business in the pipeline.
Mapfre Middlesea shares added 4.6 per cent to its previous week’s 3.8 per cent gain to close at €2.30, after five deals of 17,688 shares.
Of the banking equities traded, HSBC Bank Malta plc was the only positive performer, closing the week 1.1 per cent higher at €1.87, as 28 deals of 88,262 shares were struck.
BOV shares continued to decline, registering a 1.3 per cent drop on the week, to close at €2.389, after the week’s highest turnover worth €374,000. Last week, BOV announced the issue of €75,000,000 subordinated notes maturing in 2030. The notes are subordinated and unsecured. The bond will offer a coupon of 3.5 per cent per annum and will be issued at a price of €100 per bond.
This issue will be split into two series – Series 1/2015 will have a minimum application amount of €25,000 while Series 2/2015 will be subject to a minimum application of €5,000. Out of the €75 million on offer, up to €40 million is reserved for preferred applicants, being BOV shareholders on the register of members as at October 21, as well as bank directors and staff. The closing date for applications for the subscription notes by preferred applicants is November 30 at 10am. Applications for the bond will be open to the public on December 2.
There was no movement in the share price of Fimbank plc, which traded at $0.45 in six deals of 82,800 shares.
Elsewhere, the share price of Grand Harbour Marina plc (GHM) advanced for the first time in eight weeks, to close at €1.04 – up by four per cent as 17,000 shares changed hands in three deals. In its interim directors’ statement, GHM reported improved revenues for the group during the first nine months of the year, with growth in both Grand Harbour Marina in Malta and in IC Cesme Marina, Turkey, in which the group holds a 45 per cent beneficial interest. For the period under review, the group registered revenues of €4.63 million, a six per cent increase over the corresponding period in 2014, and a pre-tax profit of €0.55 million.
Meanwhile, Malta International Airport plc (MIA) shares appreciated by 2.3 per cent, thus registering a three-week winning streak, to close at a fresh seven-week high of €3.99, after 22 deals of 26,446 shares.
In the property sector, Tigné Mall plc maintained its upward momentum as its share price closed at a record high of €0.96 – an increase of 0.5 per cent on the week, as 13 deals of 70,600 shares were struck. Conversely, eight deals of 68,200 shares in Malita Investments plc shares dragged its price 1.1 per cent lower to €0.91. Meanwhile, Plaza Centres plc remained unchanged at €0.97 as 82,550 shares changed hands.
On a negative note, International Hotel Investments plc shares declined by 4.3 per cent to close the week at €0.81, as 18 deals of 21,924 shares were executed.
Among the list of fallers, GO plc shares fell for the second consecutive week to close at €3.15 – down by 1.6 per cent after the second highest turnover worth €235,000. The company announced that its fully-owned subsidiary, GO Data Centre Services Ltd, has entered into a preliminary agreement to buy 51 per cent of the issued share capital of Kinetix IT Solutions Ltd, subject to regulatory approval.
Oil and gas logistics and services company Medserv plc peaked at a fresh all-time high of €2.17 to then close the week unchanged at €2.15, as 17 deals of 34,237 shares were struck.
The week’s other non-mover was Simonds Farsons Cisk plc as it stayed at its all-time high of €6, as a single deal of a scant 394 shares were executed in Friday’s trading session.
In the corporate bond market, total trading value stood at €1.25 million – up from €750,000 the previous week – of which 12 issues closed in positive territory, six fell out of favour, while 15 closed unchanged. The six per cent Island Hotels Group Holdings plc € 2024 issue recorded the week’s best performance as the bond price surged by 5.1 per cent to €113.50, after four deals of 15,900 nominal. Meanwhile, the 5.1 per cent PTL Holdings plc Unsecured € 2024 issue fell by 2.7 per cent to close at €108.
Mediterranean Investments Holding plc (MIH) announced that the issue of €11 million six per cent unsecured notes 2020 had been fully subscribed. MIH will use the net proceeds from the notes, amounting to €10.9 million, to reduce the bank indebtedness of Palm City.
In the sovereign debt market, of the 23 traded issues, 10 rose and 13 lost ground, after a total trading volume of €3.52 million – down by 16 per cent week-on-week. The 2.3 per cent MGS 2029 (II) FI Oct 15 r issue recorded a 1.2 per cent gain on the week to close at €104.81, after a turnover worth €981,000 – representing 28 per cent of total turnover. Meanwhile, the 4.65 per cent MGS 2032 (I) inched one per cent lower to €134.57 as seven deals of 166,300 nominal were negotiated.
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.