The MSE Share Index erased yesterday’s gains as it lost 0.40% to 4,736.800 points today, reflecting the drops in the share prices of IHI (-3.1%) and RS2 (-2.8%) which outweighed the gains registered in GO (+0.6%), MPC (+0.6%) and Medserv (+0.1%). Trading volumes improved to a three-day high of €0.44 million.
Three deals totalling 8,030 shares dragged the equity of RS2 Software plc 2.8% lower to the €1.65 level.
The other negative performing equity today was International Hotel Investments plc which dropped by 3.1% to the €0.63 level albeit on trivial volumes.
In contrast, GO plc climbed 0.6% to the €3.57 level on volumes totalling 22,950 shares. Last week, the telecoms Group revealed its 2016 financial results showing an improved EBITDA of €61.6 million (+19.4%) but profits after tax dropped by 23.2% to €20.3 million. Nonetheless, the Directors recommended a final net dividend of €0.11 per share which is 10% higher than the net dividend for FY2015. The dividend is payable on 5 May 2017 to all shareholders as at close of trading on Wednesday 29 March 2017.
Medserv plc advanced by a marginal 0.1% to the €1.66 level after recovering from an intra-day low of €1.602 (-3.4%). A total of 58,580 shares traded. Yesterday, the oil and gas logistics specialist announced that its wholly-owned subsidiary Middle East Tubular Services LLC has been awarded a new long term contract with Sumitomo Corporation Tubular Supply Oman for the supply chain management of Oil Country Tubular Goods to Petroleum Development Oman – a joint-venture between the Government of Oman and Shell. The contract, which is the largest ever won by the Medserv Group, is for an initial period of five years with a five-year extension option. Meanwhile, Medserv also revealed that it was not successful in its first tender to offer its services in Trinidad. The Company is however awaiting adjudication on a second tender and is actively pursuing other work in Trinidad as well as the surrounding region.
In the property segment, Malta Properties Company plc recaptured the €0.52 level (+0.6%) across 21,100 shares.
On the other hand, Malita, Plaza and Tigne’ Mall all closed unchanged today. Malita Investments plc maintained the €0.81 level across 15,800. The Company is expected to reveal its 2016 financial results today.
Plaza Centres plc (10,000 shares) and Tigne’ Mall plc (5,500 shares) held on to the €1.09 and €1.13 levels respectively. Plaza’s 2016 annual financial statements will be published on 9 March whilst Tigne’ Mall has not yet disclosed the date when its Board of Directors will meet to consider and approve its 2016 financial statements.
In the retail banking sector, HSBC Bank Malta plc retained its three-year high of €2.06 on heightened activity totalling 81,840 shares. Last week, HSBC published its 2016 financial results showing slightly reduced profits on an adjusted basis. The Board of Directors recommended a final net dividend of €0.027 per share to shareholders as at the close of trading on 10 March 2017.
Bank of Valletta plc also closed flat at the €2.19 level across 18,777 shares.
A single deal of just 832 shares left the equity of Santumas Shareholdings plc at its all-time high of €1.55.
On the bond market, the RF MGS Index moved higher for the fourth consecutive days as it advanced by a further 0.17% to a near five-week high of 1,132.346 points. The spreads between the 10-year yields of Italy and Spain and German bonds narrowed today. In fact, whilst the 10-year benchmark German Bund yield advanced to 0.213% from 0.205% yesterday, the corresponding yields on Italian and Spanish government bonds retracted to 2.099% and 1.623% respectively from 2.151% and 1.664%. Meanwhile, in the US, a member of the Federal Open Market Committee reiterated his views that the Fed may need to hike rates “sooner rather than later”.
This article is provided by Rizzo Farrugia Investment Consultants.