The Malta Stock Exchange (MSE) index registered its worst weekly drop in 10 weeks, following significant declines in equities that have a significant weighting on the index – primarily GO plc, HSBC Bank Malta plc and Malta International Airport plc (MIA). These losses more than offset advances in the shares of Bank of Valletta plc (BOV), Simonds Farsons Cisk plc (SFC) and Medserv plc. The index registered a week-on-week loss of 1.65 per cent, to close at a two-month low of 4,473.091 points.
Total turnover fell to €1.07 million, as 17 equities were negotiated – of which eight fell, four rose, and five closed unchanged.
HSBC shares reversed their previous week’s gains, as 23 deals of 81,250 shares dragged the equity’s price down by 1.2 per cent, to close at €1.602.
Likewise, Lombard Bank Malta plc shares closed the week down by 0.9 per cent to €2.10, albeit on thin volume –a single deal of just 500 shares.
BOV was the only gainer in the banking industry, recovering most of the previous week’s fall as 41 transactions of 75,552 shares lifted the equity’s price by 0.4 per cent to €2.239. Last Thursday, BOV rejected media reports that it deliberately breached anti-money laundering regulations and invited anyone worried about the bank’s conduct to raise their concerns with the appropriate supervisory authorities.
Shares of GO plc, which plummeted by 17.1 per cent after the week’s highest turnover worth €304,000, had the most negative impact on the MSE index. The telecommunications company shares touched a multi-month low price of €2.75 in intra-day trading.
Last Tuesday, the company announced that La Société Nationale des Télécommunications (Tunisie Telecom) has been selected as the final preferred bidder and will be submitting a voluntary bid of €2.87 per share of the company’s entire issued share capital.
On Wednesday, GO further stated that Tunisie Telecom has announced its intention to launch a voluntary bid for the company’s issued share capital. Shareholders who accept the voluntary bid will be entitled to receive €2.87 per share in cash. Emirates International Telecommunications (Malta) Ltd, which owns 60 per cent of the company’s issued share capital has irrevocably undertaken to accept the voluntary bid.
Meanwhile, the share price of Malta Properties Company plc was pulled down by 4.1 per cent to €0.51 after 16 deals of 116,184 shares.
There was also a substantial drop in the share price of MIA, which fell 1.7 per cent to €4.30 – a four-month low – as 13 deals of 17,662 shares were struck.
In the IT industry, RS2 Software plc shares fell by a minimal 0.03 per cent to close at €3.499 after a total turnover of €159,600. Meanwhile, there was no change in the share price of 6pm Holdings plc shares after two deals of just 5,000 shares.
The logistics and services company for oil and gas, Medserv plc, partially recovered from its previous week’s 2.5 per cent decline, as eight deals of 13,390 shares were executed, pushing the price 0.6 per cent higher to €1.76 after opening the trading week at a low of €1.70.
On Thursday, Medserv plc announced that it had been awarded a contract by ENI to provide logistics base and associated services for its exploration activities taking place offshore Portugal, Alentejo Basin. The six-month contract may also be extended. To provide these services, the company has incorporated a wholly owned subsidiary in Portugal called MDS Energy Portugal Unipessoal LDA. It is expected that the contract will be serviced through the group’s internal resources.
SFC shares registered a strong gain of 2.9 per cent to retouch an all-time high of €6.40, first reached in December 2015. During the week, the company announced that in anticipation of the proposed spin-off in 2017 of the Farsons Group’s non-operational property assets to a newly listed public limited company, subject to shareholders’ approval, as from Wednesday the board of directors has appointed Charles Xuereb as CEO and Christopher Ciantar as chief operations officer of Trident Developments Ltd – a fully owned subsidiary of the Farsons Group. Dr Ciantar will be supporting Mr Xuereb in the implementation of infrastructural projects, including the rehabilitation and conversion of the old brewery building into an office business park, car park and ancillary services, a visitors’ attraction and food and beverage outlets. The separate board of directors for the proposed spin-off is intended to benefit and enhance shareholder value.
The week’s other gainer was Global Capital plc, whose shares inched up 0.2 per cent to €0.451 after a single deal of a mere 400 shares.
Trading in the red were shares of Midi plc and International Hotel Investments plc, down by 0.5 and 0.2 per cent respectively; both were active on low turnover.
In its interim directors’ statement issued on Friday, Midi announced that no events or transactions had taken place that would impact the company’s financial position.
The week’s other non-movers were Mapfre Middlesea plc, Maltapost plc, Malita Investments plc, and Tigné Mall plc; the latter was negotiated in a total turnover of €84,800.
In the corporate bond market, total turnover fell from €1.5 million to €1.15 million as 32 issues were active – of which 14 declined, seven gained ground, and 11 ended the week unchanged.
The worst impacted was the six per cent Island Hotels Group Holdings plc € 2024 issue, down by 3.4 per cent to €111, while the 4.5 per cent Hili Properties plc Unsecured € 2025 issue surged by 3.2 per cent to close at €108.50.
In the sovereign debt market, total turnover stood at €8.7 million – up from €6.6 million – and spread over 22 issues, the majority of which rose in value. The 2.5 per cent MGS 2036 (I) was the most liquid stock, representing around 43 per cent of total turnover, and ending the week marginally lower at €105.98.
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.