Bank of Valletta plc (BOV) announced its annual results for the financial year ended September 30, 2016. The group reported a pre-tax profit of €145.9 million, which includes a one-off gain arising from the disposal of BOV’s interest in Visa Europe of €27.5 million. Profit before this gain is marginally higher than the previous comparative period.
BOV’s board of directors resolved to recommend for the approval of the annual general meeting, the payment of a final gross dividend of €0.0852 per share to registered shareholders as at close of business on November 16, and a bonus share issue of one share for every 13 shares held, which will be allotted to registered shareholders as at close of business on January 16, 2017.
Last week the Malta Stock Exchange (MSE) index turned positive in Friday’s trading session, buoyed in the share price of BOV, HSBC Bank Malta plc and GO plc, closing the week 0.11 per cent higher at a 16-week high of 4,550.729 points.
Meanwhile, the declines in Malta International Airport plc (MIA) and Simonds Farsons Cisk plc (SFC) shares limited the index from closing higher.
Total trading value rose from €1.14 million to €2.85m, as activity was spread across 15 equities, of which six gained ground, four closed in the red and five stood unchanged.
BOV shares took the lead with a 0.7 per cent gain on the week, closing at a 19-month high of €2.305, having traded in the week’s highest turnover worth €1 million.
Meanwhile, HSBC Bank Malta plc rose by half a per cent to €1.91 in the final hour of trading on Friday, as 56 deals of 129,650 shares were traded, after failing to sustain a 17-month high closing price of €1.93.
There was no movement in the share prices of Lombard Bank Malta plc and Fimbank plc at €2.18 and $0.88 respectively. While the latter was active in two deals of 12,517 shares, a single deal of a scant 2,000 shares was executed in Lombard shares.
Telecommunications company GO recorded the week’s best performance when it closed up by 0.9 per cent at €3.23, after six deals of 19,847 shares were executed.
Among the list of gainers, the oil and gas logistics and services company Medserv plc lifted its share price 0.6 per cent higher to €1.509, thus managing to recoup part of its previous week’s two per cent fall, after eight deals of 228,900 shares.
Mapfre Middlesea plc shares continued on their upward momentum, climbing 0.6 per cent to €2.011 as three deals of 2,261 shares were transacted.
Loqus Holdings plc shares also locked a positive return, as its share price advanced by 0.7 per cent to €0.14 on a thin volume of 400 shares.
On a negative note, Malta International Airport plc (MIA) added a further 0.1 per cent to its previous 0.7 per cent decline, to close the week at €4.145 after 21 deals of 34,706 shares after having recovered from an intra-week low of €4.13.
Simonds Farsons Cisk plc’s share price dropped by 3.6 per cent to a six-week low of €6.75, as 2,156 shares were traded in three deals.
The week’s main laggard was Global Capital plc, as the equity sank by 4.3 per cent to a 13-week low of €0.45, on a single deal of 4,000 shares.
In the property sector, Malta Properties Company plc gave up 1.6 per cent of its previous 9.5 per cent gain, to close the week at €0.61, following 16 deals of 59,798 shares.
The week’s only other traded property equity was Midi plc, which closed unchanged at €0.325, as 7,000 shares changed hands.
In its interim directors’ statement last Friday, Tigné Mall plc reported that since the publication of its interim financial statements no material events have taken place and its financial position and expectations for the final quarter remain positive and in line with its projections. This equity was not active last week.
The week’s other non-movers were RS2 Software plc and International Hotel Investment plc (IHI). The former equity witnessed 47 deals of 672,248 shares and traded at an intra-week low of €1.395 and a high of €1.53, to then close flat at €1.50. On the other hand, all five deals of 8,000 IHI shares were executed at €0.66.
In the corporate bond market, total turnover doubled to €2 million, spread across 34 issues, of which 10 gained ground, 11 fell out of favour and 13 stood unchanged. The newly listed, 4.25 per cent Gap Group plc secured € 2023 issue rose by 2.5 per cent to €102.50 from par, on four deals of 28,000 nominal.
During the week, Premier Capital plc announced the approval of a €65 million unsecured bond issue, with a coupon of 3.75 per cent and maturing in 2026, at a nominal value of €100. Current bondholders of the 6.8 per cent Premier Capital plc 2017-2020, to be redeemed on March 16, 2017, have a reserved amount of €30 million. Preference of up to €3 million is being granted to shareholders, directors or employees of Hili Ventures Ltd, while a further €12 million will be reserved to bondholders of Hili Properties and PTL Holdings. The new bonds are expected to start trading on December 1, 2016.
In the sovereign debt market, of the 26 traded issues, only one closed the week in positive territory – reflecting movements witnessed across their European counterparts. The 5.25 per cent MGS 2030 (I) issue declined the most – falling by 1.2 per cent last week to €151.26 after six deals of 52,900 nominal.
Total turnover stood at €14.7 million, of which 26 per cent was traded in the long-dated three per cent MGS 2040 (I) and 2.4 per cent MGS 2041 (I) r, closing the week at €121.41 and €109.70 respectively.
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. Mr Mizzi is a non-executive director of Hili Ventures Ltd, the parent company of Premier Capital plc. 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.