The MSE index extended its positive rally for the third consecutive week having closed 0.13 per cent higher at 4,747.812 points – as positive earnings released by Malta International Airport, GO plc and HSBC Bank Malta plc helped the index to gain ground. A total of 17 issues were active during the week of which seven headed north, six lost ground while the remaining four issues remained unchanged.
In the banking sector, Lombard Bank Malta plc shares outperformed its banking counterparts to reach a one year high, as the equity climbed 4.9 per cent to close at €2.35 – all activity was witnessed during Thursday’s session when a total turnover of €93,870 was witnessed over eight deals. Meanwhile, trading in Fimbank plc resulted in a 0.6 per cent gain to close at $0.90 – as four trades last Tuesday saw 54,532 shares change hands.
Last Tuesday, prior to trading, HSBC Bank Malta plc announced its financial results for the year ended December 31, 2016 reporting a profit attributable to shareholders of €40.2m, resulting in earnings per share of 11.2 per cent compared with 8.5 per cent in 2015. The board recommended the payment of a final gross dividend of 4.1 per cent per share (2.7 per cent per share net of tax). Together with the interim dividend paid in September 2016, the total gross dividend for the year will be 11.2 per cent per share (7.3 per cent per share net of tax), which represents a 45 per cent increase compared to the 2015 dividend. The final dividend will be paid on April 20 to shareholders on the bank’s register of shareholders at March 14. Four positive sessions followed this announcement after a 2.4 per cent drop on Monday, thus closing the week marginally higher at €2.05– reaching a fresh three-year high.
Despite registering this week’s highest turnover of €415,000 which accounted for 24.4 per cent of total turnover, Bank of Valletta plc remained practically unchanged as the equity lost a fraction of its price to close at €2.19.
In the property sector, Santumas Shareholdings plc registered last week’s best performance as the equity surged by 10 per cent to close at €1.54 – generating a turnover of €11,685. On the other hand, the share price of Malta Properties Company plc sagged to a six-month low of €0.52, thus registering a 3.7 per cent decline on the week.
In the same sector, Plaza Centres plc registered a one per cent decline to close at €1.09 on a turnover worth €75,000 while Malita Investments plc and MIDI plc closed unchanged at €0.81 and €0.33 respectively, on similar volumes.
Last Wednesday, the Board of Directors of Malta International Airport plc announced its financial statements for the year ended December 31, 2016 wherein it was reported that profits for the year increased from €19.3m to €21m. Increases in revenues were registered by both the company’s aviation and non-aviation segments. The global sum of group revenues for the year was €73m up from €66.9m in 2015. Aviation revenues, which grew by 10.9 per cent to €51.5m, are largely attributable to a new traffic milestone achieved with over five million guests welcomed at the airport last year. The Board of Directors is recommending the payment of a final net dividend of €0.07 per share (gross €0.107692) on all shares settled as at close of business on April 10, payable by not later than May 26.
These results helped the equity sustain the previous weeks’ positive momentum by a further 1.18 per cent to close at €4.20 – after reaching its highest levels since October 2016 of €4.25 intra-week.
On a negative note, GlobalCapital plc shares dropped by 3.7 per cent to €0.395 as 23,588 shares were exchanged over four transactions. Elsewhere, Simonds Farsons Cisk plc plunged to €7.20 as three trades of 5,000 shares were executed.
Last Tuesday, GO plc announced that the board of directors approved its preliminary statement of annual results for the financial year ended December 31, 2016. The group’s revenue increased by €33.3m to €157m. Profit before tax amounted to €28.1m compared to €34.2m in 2015 resulting in an earnings per share (EPS) of €0.182 compared to €0.261 in 2015. Cost of sales, administrative and related costs amounted to €131.9 million compared to €97.5 million in 2015. The main increase of €29.7 million is the result of the consolidation of the results of Cablenet and amortisation charges that result from the intangible assets created as a result of the acquisition of both Cablenet and Kinetix. The acquisitions concluded during the year had a positive effect on group Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) which grew by 19.4 per cent to €61.6 million, an increase of €10 million over the comparative year.
Furthermore, the board resolved to recommend that the AGM approves the payment of a final net dividend of €0.11 per share which will be paid on May 5 to all shareholders on the company’s register as at April 3. These results had a positive effect on the company’s share price having registered its highest price since May 2016 of €3.599 on Wednesday, but falling short in the following session to close at €3.55 – still registering a 1.5 per cent gain on the week.
Medserv plc shares made a strong late run as the equity gained 3.6 per cent during Friday’s session to close at €1.658 – thus reaching a 10-week high. RS2 Software plc shaved 2.9 per cent off its price to close at €1.649 – reaching a two-month low on a turnover worth €91,400.
Mapfre Middlesea plc shares closed unchanged at €2.23 – as four trades generated a turnover of €38,022. No movement was noted in the closing price of International Hotel Investments plc having closed at €0.65 as 57,145 shares changed hands.
Last Thursday, Loqus Holdings plc announced the approval of the directors’ half-yearly report for the six months ending December 31, 2016. The group registered an overall profit for the period due to improvements in cost management; however, reported a reduction in revenue. No activity was witnessed in this equity this week.
On the sovereign debt front, a turnover of €5.2m was spread over 23 issues of which 14 closed higher while nine headed south. Longer-dated stocks closed in positive territory with the exception of 2.1 per cent MGS 2039 (I) r and 4.3 per cent MGS 2033 (I).
In the corporate debt market 40 issues were active last week of which 11 closed higher, 17 closed in the red, while 12 closed unchanged. The 4.25% GAP Group plc Secured € 2023 took the lion’s share of trading with a turnover of €743,700 out of a total turnover of €1.99m in the corporate bond market.
Last Wednesday, Eden Finance plc announced that an application was submitted to the Listing Authority requesting the admissibility to listing of €35,000,000 Eden Finance p.l.c. Unsecured Bonds 2027.
This article, compiled by Jesmond Mizzi Financial Advisors Limited, 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 is a member of the Malta Stock Exchange and 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 more information, contact Jesmond Mizzi Financial Advisors Ltd at 67, Level 3, South Street, Valletta, on tel: 2122 4410, or e-mail info@jesmondmizzi.com.