Last Friday, the Accountant General announced the issue of two Malta Government Stocks – the 1.5 per cent MGS 2022 (IV) Fungibility Issue and the 2.4 per cent MGS 2041 (I) – with prices yet to be announced. The two stocks will in aggregate be of €100 million, subject to an over-allotment option of €60 million in the event of oversubscription.
Meanwhile, earlier last week, International Hotel Investments plc (IHI) announced that the company had received applications amounting to over €148 million for the issue of the four per cent IHI plc secured bonds 2026, while Midi plc received over €100 million for the four per cent Midi plc secured bonds 2026. IHI and Midi will announce their basis of acceptance and allocation in the coming days.
In the equity market, the Malta Stock Exchange (MSE) index registered its third consecutive weekly decline, closing the week 0.7 cent lower at 4,465.797 points.
This negative performance was primarily due to the falls in the share prices of IHI, HSBC Bank Malta plc and RS2 Software plc shares.
On the other hand, gains in Malta International Airport plc (MIA), Fimbank plc and most of the traded property equities stopped the index from settling even lower.
Total trading value dropped from €2.25 million to €788,000, as activity was spread across 15 equities, of which six gained ground, eight closed the week lower and one stood unchanged.
In the banking sector, HSBC shares dipped by 1.3 per cent to €1.57, as 20 deals of 59,100 shares were struck. Its peer, Bank of Valletta plc closed the week unchanged at €2.21, despite trading the week’s highest turnover worth €158,000.
Conversely, the week’s best performing equity was Fimbank plc, which appreciated by a further four per cent, thus extending its upward momentum to a seventh week. The banking equity reached a fresh seven-year high of $1.02 intra-week but then closed at $1.019, after being active in seven deals of 80,750 shares.
It was also a positive week for Lombard Bank Malta plc shares, which gained 2.3 per cent to close at €2.25, as 31,235 shares changed hands in eight deals.
Elsewhere, five deals of 7,000 MIA shares in lifted its share price 2.4 per cent higher, thus recovering its previous week’s decline, as the equity returned to €4.25.
In the property sector, Plaza Centres plc shares locked a weekly return of 2.8 per cent, climbing to an all-time high of €1.10, as three deals of 10,000 shares were negotiated.
Moreover, the share price of Midi plc climbed 1.9 per cent higher to a one-month high of €0.377 on eight deals of 50,000 shares, while Malita Investments plc shares advanced 1.1 per cent to €0.89. The latter equity was active in seven transactions of 45,500 shares.
On the other hand, Malta Properties Company plc shares wiped out its previous week’s 0.2 per cent gain when it closed at €0.507 after 11 deals of 25,300 shares.
On a negative note, IHI shares plunged by 4.4 per cent in last Friday’s session to close the trading week at a one-month low of €0.65, after three deals of 4,575 shares.
In the IT services sector, RS2 and 6PM Holdings plc shares both registered a decline over the week. RS2’s share price dropped to a four-month low of €1.96 intra-week but then recovered to €2.01 by Friday’s session, registering a 5.6 per cent fall over the week. The equity was active on a volume of 61,180 shares spread across 24 deals. Similarly, 6pm Holdings plc shares dipped by a further 5.6 per cent to a three-month low of £0.85, as three deals of 50,000 shares were struck.
Among the list of fallers, the oil and gas logistics and services company Medserv plc more than reversed the previous week’s 1.1 per cent gain with a 2.2 per cent decline, to close at €1.80; it was active in 12 deals of 30,483 shares.
Moreover, the share price of telecommunications company GO plc traded 1.4 per cent lower at €2.82, as 10 deals of 12,600 shares were struck.
In an announcement last Thursday relating to the sale process for the shares in GO to Tunisie Telecom (TT), GO announced that extensive due diligence had been carried out, legal advice had been obtained and the process was overseen by international advisors to ensure that no conflicts of interest issues arose.
TT has informed the MFSA and GO that the parliamentary debate on the acquisition is a standard part of the democratic process in Tunisia, and robust measures are in place to ensure arm’s length negotiations with Emirates International Telecommunications for its shareholding in GO.
TT confirmed its healthy financial condition and that the bid for GO is fully funded. TT also confirmed that it has a strong record of profitability and has consistently posted net profits in past years with significant dividends being paid out to its shareholders.
Simonds Farsons Cisk plc shares also closed in the red by Friday’s trading session, when a single deal of 1,000 shares pulled its share price half a per cent lower to €6.25. The equity recorded a total volume of 2,525 shares, spread across four deals.
Last Thursday, Mapfre Middlesea plc issued its interim financial results for the half year ended June 30. The company reported a drop in pre-tax profit from €15.2 million to €5.7m, when compared to the first six months of 2015. This decline was attributed to a one-off reinsurance cost adjustment in 2015 and stronger returns on financial investments during the first six months of 2015. Earnings per share stood at €0.024. The board of directors did not propose to pay an interim dividend.
In the corporate bond market, total turnover stood at €440,000 – a week-on-week decline of 43 per cent, spread across 19 issues, of which two rose, 10 fell out of favour and seven remained unchanged.
In the sovereign debt market, of the 20 traded issues, 13 advanced and seven fell out of favour. While most of the long-dated issues gained ground, short-dated issues declined as maturity nears. Total trading value dropped from €13.2 million to €4.8m.
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.