The Malta Stock Exchange (MSE) index extended its negative rally for the third consecutive week, registering a marginal decline of 0.164 per cent to settle at 4,707.432 points.
A total of 13 issues were active last week, of which four gained ground, five lost value, and the remaining four remained afloat. Three of the five largest equities, namely HSBC Bank Malta plc, GO plc and Malta International Airport plc (MIA) helped to temper the tone.
Total turnover declined from €1.5 million to €1.3m.
A strong session last Wednesday helped Lombard Bank plc gain 2.1 per cent to reach a 15-month high. Weekly turnover totalled €164,817 spread over 13 transactions.
In an announcement at the beginning of March the company had declared that registered bank shareholders as at Tuesday, March 28 (with the last trading date being last Friday) will be entitled to a final net dividend of 2.6 cent per share.
HSBC Bank Malta plc followed suit as it mitigated its previous week’s decline, closing just three cents shy of its three-year high to close at €2.06 – as a total of 19 deals helped to generate a total turnover of €184,653.
On a negative note, banking counterparts Fimbank plc and Bank of Valletta plc (BOV) shares closed in negative territory, contracting by 4.5 per cent and 0.5 per cent to close at $0.85 and €2.19, respectively – with Fimbank reaching a five-week low.
BOV was once again the major contributor to turnover as over €337,000 were transacted in 49 deals, whereas 164,683 shares were traded in Fimbank.
In the telecommunications industry, GO plc shares recouped most of its previous week’s decline as the equity rose by 0.6 per cent to close at €3.52. Last Thursday, the equity registered its highest turnover for the week, with the company announcing that its forthcoming annual general meeting will be held on May 3.
Similarly, Malta International Airport plc (MIA) shares rebounded from its previous week’s decline as the equity closed in positive territory – 0.6 per cent higher to €4.15 – as total turnover in the equity amounted to €98,435 spread over 12 deals.
Last Tuesday, the board of directors of Malta Properties Company plc (MPC) approved the financial statements for the year ended December 31, 2016. The board has recommended to the annual general meeting, which will be held on May 25, that no dividend will be paid.
The group delivered a solid financial performance in 2016. During the financial year under review, the group’s pre-tax profit rose by €2.03 million over that of the previous year, and amounted to €3.45m (2015: €1.42m) – predominantly reflecting an adjustment of €1.7m on fair valuation of property.
Revenues from rental income increased by two per cent and stood at €3.24 million (2015: €3.17m). Revenues are expected to increase gradually in line with inflation. MPC also stated that the long-term leases in place on the various properties secure the group’s revenues at these levels for the foreseeable future.
In 2016, administrative expenses amounted to €0.71 million (2015: €0.54m). This rise was in line with expectations as this was MPC’s first full year of independent operations, and as the group is undertaking its planned redevelopment projects.
Following announcement of these results, the equity’s share price slipped in last Wednesday’s session, but fully recovered from its decline in the subsequent session, to close flat at €0.52 after nine deals of 58,001 shares.
Despite registering a total turnover of €25,292 spread over 10 deals, Midi plc shares failed to veer, closing flat at €0.33.
Last Thursday, Midi plc announced an outline development permit for Manoel Island, clearly setting out the parameters of the development and specifying the extent of development permitted, including a mix of low-rise residential and commercial development, marina, restoration, dredging, land reclamation and infrastructural obligations. The company said it is fully committed to the restoration and rehabilitation of the heritage buildings on Manoel Island and the extensive provision of space for leisure and heritage walks and events.
Two deals amounting to a mere 2,000 shares during last Monday’s session in Malita Investments plc saw the equity nearing a 26-month low at €0.755. On the same note, two deals amounting to 6,000 shares saw Plaza Centres plc hit an eight-month low at €1.05.
Global Capital plc shares extended its decline for a second consecutive week, hitting a 15-month low at €0.34, as the equity traded on a thin volume in a single deal.
Elsewhere, a total turnover of €32,800 spread over four deals and €224,279 spread over four trades in RS2 Software plc and International Hotel Investments plc (IHI) shares respectively, left the price of both equities unaltered to close at €1.64 and €0.64, respectively.
In the sovereign debt market a total of 22 issues were active during the week of which only two lost ground, with the remaining 20 active issues rebounding from the previous week’s decline. Longer-dated bonds, which hold a maturity greater than 10 years, registered advances ranging from 0.8 per cent to just under two per cent – in line with European counterparts. The 2.2 per cent MGS 2035 (I) experienced the largest increase as the bond registered an increase of 1.96 per cent, closing at €100.33. The 2.5 per cent MGS 2036 (I) registered last week’s highest turnover, accounting to 20 per cent of total turnover to close at €102.33.
The corporate debt market followed suit as most of the 37 active issues, amounting to 14, closed last week in positive territory, with 10 falling in value and 13 closing flat.
The 5.8 per cent IHI plc 2021 registered last week’s largest increase as the bond added three per cent to its price to close at €110.
Meanwhile, the six per cent Mediterranean Investments Holding plc euro 2021 suffered the largest decline of 6.4 per cent to close below par at €98.01 – with a single deal of 8,200 nominal units.
This article which was compiled by 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 is 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 Financial Advisors Ltd at 67, Level 3, South Street, Valletta, or on Tel. 2122 4410, or e-mail info@jesmondmizzi.com.