The Malta Stock Exchange (MSE) index added a further 0.33 per cent to the previous week’s 0.1 per cent decline, to close the third week of May lower at 4,548.199 points. Gains in the share prices of four equities, primarily the large cap equites HSBC Bank Malta plc, International Hotel Investments plc and Malta International Airport plc failed to offset the fall in value in Bank of Valletta plc and eight other equities.
Trading activity was spread across 18 equities, of which four advanced, nine declined and five stood unchanged. The value of total turnover was €2 million – up 39.8 per cent week-on-week.
In the financial services sector, HSBC Bank Malta plc was the week’s only gainer, partially recovering from the previous week’s three per cent fall as its share price rose by 1.3 per cent to €1.621, as nine deals of 15,671 shares were executed.
On a negative note, Bank of Valletta plc shares closed the week at €2.23 – down by a further 0.5 per cent, after the second highest turnover of trading worth €225,000.
Similarly, Lombard Bank Malta plc’s share price fell by half a per cent to €2.12, after thin trading of only 5,000 shares.
Fimbank plc shares snapped their 10 weeks of gains as its share price fell by a slight 0.4 per cent to $0.847, after two deals of 13,100 shares.
In the same line of business, Mapfre Middlesea plc shares retreated by 1.8 per cent to close the week at €2.20, following four deals of 4,384 shares.
Elsewhere, International Hotel Investments plc shares closed 1.6 per cent higher – up for the second consecutive week – to reach €0.65, after five deals of 31,350 shares. During the week, IHI announced that NLI Holdings Ltd, owner of Corinthia Hotel in London in which IHI has 50 per cent ownership, has completed the acquisition of the Grand Hotel Astoria on Rue Royale, Brussels. NLI Holdings is in the process of appointing Corinthia Hotels to operate the property as Corinthia Grand Hotel Astoria, and QP Management Ltd to supervise its refurbishment – both are part of the IHI Group.
Last Wednesday, in its interim directors’ statement, IHI announced that despite the challenging market in London, the company has reported a higher revenue and operating profit in the year’s first quarter when compared to the same period of 2015. Moreover, the upgrading works in Tripoli are ready and the hotel will reopen for business once the situation in the country normalises.
Malta International Airport plc shares edged 0.1 per cent higher to €4.375 in last Friday’s trading session. During the week there were a total of 17 deals involving 40,329 shares in the equity. Last Tuesday, MIA released its interim directors’ statement, highlighting a 12 per cent growth in passenger traffic and a 5.1 per cent increase in turnover in the first four months of the year when compared to 2015. Furthermore, MIA reported a 7.6 per cent increase in profit during the first quarter of the year.
Meanwhile, in the property sector, the share price of Midi plc pared its previous week’s loss of 2.6 per cent, as it closed the week at €0.39. The equity was active in four deals of 30,550 shares.
Malta Properties Company plc shares oscillated between a weekly low of €0.531 and a high of €0.619, to end the week at €0.532 – down two per cent. The equity recorded a traded volume of 131,295 shares across 28 deals.
There was no movement in the share prices of Malita Investments plc and Tigné Mall plc, which traded at €0.90 and €1.06 respectively.
Last Thursday, Malita Investments plc published its interim directors statement, in which the company said that its performance was and is expected to remain in line with projections, subject to any unforeseen circumstances.
In the IT services sector, RS2 Software plc shares reached an intra-week high of €3.799, but then succumbed to selling pressure by the end of the trading week, falling by 2.5 per cent to €3.50, after adjusting for the bonus issue of one share for every 18 held. The equity, which traded ex-dividend last Friday, was active in the week’s highest turnover worth €961,000 as 254,321 shares changed hands.
Last Thursday, the company published its interim directors’ statement stating that currently, the group is present in Europe, the US, Latin America and Asia Pacific. The group reports a very healthy sales pipeline in licensing and managed services across various regions.
Meanwhile, the share price of 6PM Holdings plc stood unchanged at £0.95, as four deals of 34,420 shares were concluded.
GO plc wiped out its previous week’s 1.4 per cent gain as 26 deals of 54,587 shares were transacted to close two per cent lower at €3.48. Last Monday, GO issued an announcement in relation to the ongoing sale process in which it stated that it plans to select the preferred bidder by the end of May, after which the bidder’s identity and the terms of the bid will be announced.
Among the list of fallers, Simonds Farsons Cisk plc shares slipped by 1.3 per cent on the week, to close at €6.219, after seven deals of 14,117 shares.
Medserv plc shares fell 2.5 per cent to €1.75 as six deals of 10,060 shares were struck. Last Wednesday, the company released its updated financial analysis summary. The company issued its interim directors’ statement, outlining how lower oil prices led to increased demands for discounts for the company’s services. Total revenue for 2016 is forecast to exceed that of 2015 and profits to remain stable.
The week’s other non-movers were Maltapost plc and Loqus Holdings plc shares, which were unchanged at €1.92 and €0.131 respectively. Both equites traded in thin volume.
In the corporate bond market, total turnover remained at €1.5 million. Activity was spread across 34 issues, of which eight issues ticked higher, 17 fell and nine stood unchanged.
Global Capital plc announced that a new unsecured bond of €10 million will be issued at par, redeemable in 2021, with a coupon rate of five per cent The bond is open for subscription to existing bondholders of the 5.6 per cent Global Capital plc € 2014/16 as at the close of business on May 13. Any balance of the bonds not subscribed for by existing bondholders will be open for subscription to professional clients.
In the sovereign debt market, of the 25 traded issues, 11 rose and 14 fell out of favour as most long-dated issues gained ground while short-dated securities declined as maturity nears. Total trading value amounted to €6.6 million, of which 55 per cent was traded in the 2.5 per cent MGS 2036 (I) issue and the three per cent MGS 2040.
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.