The Malta Stock Exchange (MSE) index closed the second week of August up by 0.22 per cent, at 4,426.111 points, partly recovering some of the previous week’s 1.2 per cent decline. The positive performance was buoyed by a rise in the share value of International Hotel Investments plc (IHI) and Malta International Airport plc (MIA). But gains on the MSE were capped by the negative performance across the banking industry, mainly Bank of Valletta plc (BOV), HSBC Bank Malta plc and Fimbank plc shares.
Total trading value rose from €737,000 to €837,000, as activity was spread across 16 equities, of which seven gained ground, six closed in the red and three remained unchanged.
BOV shares turned negative after Friday’s trading session, closing 0.9 per cent lower on the week at €2.20, after the highest turnover of €154,000. Its peer, HSBC also closed the week in the red, as its share price fell by 2.4 per cent to €1.561, on 18 deals of 74,971 shares. There was no further activity in the equity after it turned ex-dividend last Thursday.
Meanwhile, Fimbank plc’s share price dipped by 3.6 per cent to a four-week low of $0.98, following last Wednesday’s announcement of the bank’s interim financial statements for the six months ended June 30, 2016. The equity was active in 12 deals of 133,995 shares.
The group reported a pre-tax profit of $2.15 million for the six months ended June 30, 2016, compared to a $7.73 million loss in the comparable period of 2015.
Net interest income for the period under review fell by 39.6 per cent to $9.79 million due to temporary idle liquidity and higher stock of liquidity assets, the tightening margins in the group’s markets and products, and reduced income on forborne or delinquent assets. Earnings per share stood at $0.38.
Moreover, the board of directors did not recommend the payment of an interim dividend.
On the other hand, Lombard Bank Malta plc shares closed the week unchanged, at €2.249, on a thin volume of 888 shares.
Elsewhere, IHI shares headed the list of gainers, as a single deal of 1,000 shares lifted its share price 7.6 per cent higher to close at €0.65, more than recovering from its previous week’s 7.1 per cent decline.
Meanwhile, MIA advanced by 2.4 per cent on the week, to close at €4.22 as 16,740 shares changed hands in 16 deals.
Likewise, Simonds Farsons Cisk plc shares closed the week 1.6 per cent higher at €6.35, on three deals of 7,184 shares.
GO plc also stood among the week’s top performers, fuelled by positive interim results for the six-month period ended June 30, 2016, announced last Tuesday.
The company reported an increase of 31.3 per cent in pre-tax profit, at €17.1 million, compared to the €13 million registered in the first six months of 2015. Revenue for the period under review amounted to €76.7 million – up by 26.3 per cent over 2015. Earnings per share stood at €0.141.
The significant increase in profit over the comparable period in 2015 was primarily the result of a gain arising from the acquisition of a subsidiary, amounting to €6.1 million.
The interim results for 2016 reflect the consolidation of the results of Cablenet and Kinetix, which had an overall positive effect on group results. Nevertheless, there was still a significant improvement in the EBITDA figure, up by 19 per cent to €29.9 million.
The board of directors did not declare any dividends and have resolved to determine the extent of dividend distribution for 2016 based on the full results for the year.
The equity locked a weekly gain of 3.6 per cent to close at a 12-week high of €2.92, following seven deals of 16,728 shares.
In the property sector, Malta Properties Company plc shares rose by 3.4 per cent to a six-week high of €0.525, on six deals of 96,185 shares, while the share price of Plaza Centres plc recovered by 1.9 per cent from its previous week’s drop of 4.6 per cent. The equity closed the week at €1.07, on a thin volume of 200 shares.
Conversely, Midi plc shares retreated by 1.1 per cent to €0.375, on a single deal of 5,277 shares, while there was no movement in Malita Investments plc’s share price of €0.851.
Last Friday, Tigné Mall plc published its interim financial statements for the six months ended June, 30 2016. The company registered a pre-tax profit of €1.4 million, compared to €1.2 million registered in 2015. Revenue for the period under review amounted to €2.8 million, a 8.1 per cent rise from 2015. Earnings per share increased to €0.014. Moreover, the directors declared an interim net dividend payment of €0.0125 per nominal €0.50 share, which will be paid on September 16 to registered shareholders as at August 22.
Meanwhile, Mapfre Middlesea plc shares closed the week 0.4 per cent higher, at €2.05, on a total volume of 12,973 shares.
On a negative note, the 2.6 per cent decline recorded in the value for RS2 Software plc was triggered by the announcement last Thursday after close of trading of its interim financial statements for the period ended June 30, 2016. The equity closed the week at a seven-month low of €1.85, as 20 deals of 73,978 shares were executed.
The group made a pre-tax profit of €3.4 million – a 47.9 per cent drop compared to the first six months of 2015. This was mainly attributed to higher expenses as the group gears up for further growth and the effect of foreign currency fluctuations.
Revenue for the period under review was reported at €11.2 million, 2.6 per cent down from €11.5 million in 2015. Earnings per share stood at €0.016. The board of directors did not declare an interim dividend.
Among the list of fallers, Medserv plc, the oil and gas logistics and services company, traded 1.8 per cent lower at €1.77 after four deals of 32,900 shares.
The week’s other non-mover was Loqus Holdings plc, which traded at €0.135 after two deals of 2,694 shares.
In the corporate bond market, there were 29 active issues and €1.7 million worth of trading value – a 42 per cent increase week-on-week, of which 11 rose in value, eight declined and 10 were unchanged.
The recently issued four per cent IHI plc secured € 2026 issue surged by 3.7 per cent to close its first trading week at €103.69, recording a turnover of €607,000.
In the sovereign debt market, total turnover stood at €8 million, spread across 21 issues, of which only four declined in value, one stood unchanged and 16 long-dated issues gained ground. The three per cent MGS 2040 (I) climbed 1.1 per cent to €115.07, and recorded a trading value of €1.3 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.