The MSE Share Index kicked-off the week by reclaiming the 4,500 points last seen at the end of last month. The index advanced by 0.55% to 4,512.645 points as seven equities performed positively whilst only two shares suffered declines. Trading activity decreased considerably from last week’s elevated levels although today’s trading activity of €385,000 is still on the high side.
This morning, HSBC Bank Malta plc announced their 2015 financial results. The Bank reported a profit before tax of €47 million, which is 10% lower than the comparable figure of 2014.
Nonetheless, when excluding the effect of the non-recurring item pertaining to the early voluntary retirement scheme first announced in November 2015, HSBC’s adjusted profit before tax of €61.5 million, represents an increase of 18% over the the comparable figure for 2014.
The Board of Directors is recommending a final gross dividend of €0.026 per share (€0.017 net), which together with the €0.051 gross interim dividend paid in September 2015, results in a total gross dividend for the year of €0.077 per share (€0.05 net) – representing a 20% increase compared to the 2014 adjusted dividend.
Shareholders as at the close of trading on 14 March will be eligible to receive the final dividend on 19 April subject to shareholder approval at the upcoming Annual General Meeting to be held on 15 April 2016. During today’s trading session, the equity advanced by 2.4% to the €1.649 level across 15,328 shares.
RS2 Software plc registered yet another all-time high as it gained 1.2% to the €3.44 level across 50,444 shares.
Two single deals in Malita Investments plc (16,700 shares) and Medserv plc (16,812 shares) lifted the equities by 1.1% and 0.7% to €0.95 and €1.551 respectively. Last week, Malita announced that its Board of Directors is scheduled to meet on Tuesday 1 March 2016 to consider and approve the Company’s financial statements for the year ended 31 December 2015. The Board will also consider the declaration of a final dividend.
GO plc regained the €3.30 level (+0.9%) on volumes of 4,600 shares. The equity trades with the entitlement to a final net dividend of €0.10 per share until 7 April 2016. In the meantime, the Company is evaluating a number of non-binding bids from parties interested in acquiring its entire issued share capital.
Positive sentiment towards Mapfre Middlesea plc persisted as the equity climbed by a further 0.8% to the €2.52 level across 3,720 shares. The insurance specialist will be announcing its 2015 financial results on 2 March.
MaltaPost plc edged 1% higher to the €1.96 level albeit on insignificant volumes.
On the other hand, Malta Properties Company plc and Bank of Valletta plc closed lower. The property company shed 1.8% to the €0.56 level across 31,600 shares.
Bank of Valletta plc failed to hold on to an intra-day high of €2.21 as it closed marginally lower at the €2.20 level (-0.1%) across 34,532 shares. Last Friday, BOV announced the issuance of €50 million 3.5% Tranche 2 subordinated bonds 2030 at par (100%) forming part of its Debt Issuance Programme dated 16 October 2015.
Also amongst the large companies, International Hotel Investments plc and Malta International Airport plc closed flat at €0.72 and €4.72 respectively. The airport operator is scheduled to reveal its 2015 financial results next Wednesday.
On the bond market, the RF MGS Index eased marginally to 1,137.401 points (-0.02%) as eurozone bond yields remained relatively stable. Recent surveys showed a decline in confidence across the manufacturing and services businesses. Last week, economic data showed the increase risk of deflation.
Subscriptions for the General Public for the newly issued two Malta Government Stocks opened this morning and close on Wednesday 24 February (or earlier in the case of oversubscription). The new issues are: (i) the 1.50% MGS 2022 (IV), which has been priced at 105.0%, gives a yield-to-maturity 0.696%, while the (ii) 2.50% MGS 2036 (I) has been priced at 101.5%, giving a yield-to-maturity of 2.408%.