After close of trading last Friday, Bank of Valletta plc (BOV) issued its interim financial results for the period ended March 31, 2016. The group reported a pre-tax profit of €68.5 million, compared to €58.8m in the comparable period of 2015. Net interest income rose by 5.3 per cent to €74.9 million. Operating income totalled €134.5 million, up by 12.5 per cent. Earnings per share stood at €0.114.

Furthermore, the board of directors declared a net interim dividend of €0.0254 per share, compared to last year’s net dividend of €0.0234 (adjusted for the bonus share issue). This is in line with the bank’s strategy to strengthen its Tier 1 capital ratio, having slightly tightened its dividend pay-out ratio from 22.6 per cent in 2015 to 22.1 per cent this year. The dividend will be paid on May 27 to registered shareholders as at May 12.

Meanwhile, the Malta Stock Exchange (MSE) index closed the last week of April marginally higher by 0.3 per cent, at 4,546.499 points. Total turnover fell by 5.5 per cent week-on-week to €1.08 million, spread across 16 equities, of which eight gained ground, six fell out of favour and two closed the week unchanged.

In the IT services sector, 6pm Holdings plc shares locked in the week’s best performance as its share price rallied by 9.2 per cent to £0.955 after 16 deals of 76,200 shares.

After close of trading on Wednesday the group announced positive results for the financial year ended December 31, 2015. The group reported a pre-tax profit of £1.6 million, compared to £939,000 in 2014. Revenue for the year amounted to £11.3 million, a rise of 17 per cent over the previous year. This was the result of added focus that the group is achieving in the health products sphere, specifically in clinical and hospital management products. Earnings per share stood at £0.081.

Conversely, the share price of RS2 Software plc closed 0.1 per cent lower at €3.795, despite an increase in buying interest on Friday after the announcement of its financial results for the year ended December 31, 2015. The equity was active in 26 deals of 54,017 shares and traded at a weekly low of €3.72 and a high of €3.828.

The company reported that pre-tax profit amounted to €6.5 million, compared to €4.2m in 2014. Revenue for the period under review stood at €19.4 million – up by 28 per cent year-on-year. This was primarily attributable to a 43 per cent increase in demand for its services over 2014. Earnings per share stood at €0.054.

The board of directors recommended the payment of a net final dividend of €0.0278 per share to be paid on June 30 to registered shareholders as at May 23. Furthermore, a bonus share issue of one share for every 18 shares held by registered shareholders as at May 23 will be recommended for approval. Moreover, the company resolved to recommend a five-for-three share split to be allotted proportionally to registered shareholders as at July 4.

HSBC Bank Malta plc shares continued to tick higher to close at a high of €1.62 – up by 1.3 per cent on the week – as 20 deals of 71,539 shares were executed. During April, the bank’s share price managed a 2.5 per cent return, compared to no movement in the share price of its peer, BOV.

Last week, BOV shares traded at a low of €2.201 and a high of €2.265, to then close the week 0.4 per cent lower at €2.25, having recorded the highest turnover for the week worth €342,000.

Meanwhile, Fimbank plc registered the highest gain in the financial services sector, thus extending its recent upward trend to eight consecutive weekly gains. A weekly gain of two per cent was recorded with the equity closed at $0.765 as 63,400 shares changed hands.

On a negative note, four deals of 2,942 shares in Lombard Bank Malta plc shares dragged its share price 2.1 per cent lower to €2.135.

Meanwhile, Mapfre Middlesea plc shares plunged by a further 4.4 per cent after the previous week’s five per cent drop, to close the week at €2.20 on a volume of 2,850 shares.

On the other hand, International Hotel Investments plc shares locked in a 3.2 per cent weekly gain, closing at €0.65, after 15 deals of 115,454 shares. This notwithstanding, its share price registered a 7.1 per cent drop during April.

This performance followed the company’s announcement of its financial results for the year ended December 31, 2015. The company reported a pre-tax loss of €349,000, compared to a loss of €30 million in 2014. Revenue for the period amounted to €134 million, a year-on-year increase of 10.6 per cent, attributable to higher revenues in the company’s European operations and the consolidation of the Island Hotels Group Holdings results for the second half of 2015. Contrasting with this was a combined reduction of €9.7 million from the group’s hotels in St Petersburg and Tripoli.

Earnings per share stood at -€0.01. Moreover, the company announced a thre per cent bonus share issue to registered shareholders as at June 30.

Elsewhere, 13 deals of 11,762 shares in Malta International Airport plc lifted its share price half a per cent higher to snap its three-week negative performance to close at a weekly high of €4.35.

The share price of Simonds Farsons Cisk plc edged 0.2 per cent higher to €6.12, on a volume of 1,917 shares.

One deal of 500 shares in Plaza Centres plc led to a one per cent gain over the week to close at €1.04, while the share price of Midi plc ticked half a per cent higher to close at €0.39, as two deals of 10,400 shares were concluded.

Conversely, Malita Investments plc and Malta Properties Company plc both ended the week in negative territory. The latter fell by 2.1 per cent to close at €0.568, as 67,800 shares changed hands.

The share price of Malita Investments plc fell by 1.1 per cent to €0.92 on a single deal of 10,000 shares. During the week, the company announced the approval of the payment of a final net dividend of €0.0143 per share.

The week’s non-movers were Go plc and Medserv plc, which closed at €3.479 and €1.791 respectively.

In the corporate bond market, total trading value declined to €743,000. Activity was spread across 28 issues, of which 21 closed higher, six declined and one traded unchanged.

In the sovereign debt market, initially, most issues traded lower as yields ticked higher, to then partially recover towards the end of the week as investors shifted their focus to safe haven assets. Out of the 23 active issues, only six gained ground while 17 declined on a turnover of €7.4 million.

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.

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