The Malta Stock Exchange (MSE) index closed last Friday 0.567 per cent lower at 4,676.26 points. Rises in GO plc, Simonds Farsons Cisk plc (SFC) and Tigné Mall plc shares helped to ease the downward pressure. Of the 16 active equities the majority closed in negative territory, with declines ranging from 0.3 to 11.8 per cent, while Bank of Valletta plc (BOV) and Maltapost plc closed unchanged.
BOV shares reached a multi-year high of €2.27 in intraday trading last Friday, following the positive interim results announced last Thursday. The equity closed unchanged at €2.25 as 52 deals generated a total turnover of €406,043. In April, the equity gained 2.27 per cent.
The BOV group announced a pre-tax profit of €74.0 million for the six months ended on March 31, 2017, an eight per cent rise over the €68.5m reported for the same period last year. This represents a return on equity before tax (ROE) of 20 per cent per annum, which is equivalent to the ROE for March 2016. Earnings per share amount to 12.1 cents (March 2016: 10.6c).
An interim dividend of €0.0450 gross per share (€0.0293 net of tax) has been declared by the board of directors. This is a rise of 24 per cent over the 3.63c declared last year, as adjusted for the bonus share issue last January. It is payable to registered BOV shareholders as at May 11.
The bank reported net interest income of €72.7m, a three per cent fall over March 2016. Total operating income, comprising interest margin and non-interest income, amounted to €123.2m, compared to €134.5m in March 2016. The fall is wholly attributable to lower price gains on investment and trading securities.
The group recorded a net reversal of impairment losses amounting to €5.3m (March 2016: net charge of €8.1m), and a positive result of €8.875m from equity-accounted investees, which positively impacted the company’s bottom line, as pre-tax profit rose from €68.483m to €74.030m. Group Core Equity Tier 1 ratio is 13.1 per cent, up from 12.8 per cent in September 2016.
HSBC Bank Malta plc shares hit a five-week low as the equity closed one cent lower from its opening price of the week at €2.05. There were 20 deals of 37,053 shares during the week.
Six deals worth a total of €67,961 saw Lombard Bank plc shares contract by 0.4 per cent to close at €2.40.
Last Friday, the company announced that following the bank’s annual general meeting, five of the nine resolutions put forward for consideration were approved. The resolutions not carried related to: the disclosure of price-sensitive information to a prospective bona fide offeror(s) and Cyprus Popular Bank Public Co. Ltd in the disposal of substantial shareholding in Lombard; the acquisition of own shares; the restriction/withdrawal of statutory pre-emption rights; and the authority to issues shares.
GO plc reached a two-week high intra-week at €3.499, but fell by one cent last Friday to close at €3.489. Total turnover in the equity stood at €76,505 after six deals.
An abnormal turnover accounting to 16.3 per cent of total weekly turnover was registered in Global Capital plc shares, spread between last Thursday and Friday’s sessions, as the equity plunged by 11.8 per cent.
SFC shares reached a fresh all-time high intra-week at €7.45 but fell by one cent in the following session to close at €7.44. A total turnover of €16,858 spread over four deals resulted in a 0.54 per cent gain.
Last Friday, International Hotel Investment plc (IHI) announced that the group made a pre-tax loss of €6.763m, compared to a €349,000 loss in 2015. Revenue for the period under review amounted to €157.9m, a rise of just under 18 per cent from 2016. Loss per share remained €0.01.
The company also announced its intention to issue a three per cent bonus share to IHI shareholders as at close of business on June 30, 2017, subject to obtaining the necessary approvals.
RS2 Software plc shares extended its negative tally for the fifth consecutive week as the equity fell by 5.1 per cent to hit its lowest level since November 2016, to close at €1.50. Total turnover stood at €112,315 spread over 17 deals.
Medserv plc shares also contracted by 4.3 per cent to hit €1.45, their lowest level since August 2015, after two deals generated a total turnover of €7,176.
Malta International Airport plc (MIA) shares also closed in the red as 24 deals for 35,567 shares saw the equity close one per cent lower at €4.15.
A single deal of 1,200 shares in Tigné Mall plc led the equity’s price to rise 3.9 per cent to close at €1.10 – a six-week high. Meanwhile Midi plc shares registered the weakest performance among its peers as the equity fell six per cent to close at a 23-month low of €0.30.
Two deals of 37,000 shares last Friday in Plaza Centres plc caused the price to fall by 3.6 per cent to close at €1.06.
Malita Investments plc followed suit as seven deals generating a total turnover of €77,700, saw the equity’s price lose ground by 1.3 per cent to close at €0.74.
On the other side of the coin, six deals managed to generate a total turnover of €30,438 in Malta Properties Company plc shares to close relatively unchanged at €0.517.
Elsewhere, a single deal of 466 shares in Maltapost plc failed to veer the equity’s price which closed at €2.05.
In the sovereign debt market a total of 25 issues were active last week, of which 21 issues fell, three gained ground and one closed flat.
In the corporate debt market, 32 issues were active during the week, of which 13 gained ground, eight declined and 11 closed flat.
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.