It was a four-day trading week on the Malta Stock Exchange (MSE), with the market closed on Monday due to the feast of the Assumption. The MSE index closed the week flat, with a negligible decline of 0.03 per cent at 4,424.983 points.
Solid gains were recorded by Bank of Valletta plc (BOV), GO plc and Malta International Airport plc (MIA) which fairly offset the negative performance in the share price of Lombard Bank Malta plc and International Hotel Investments plc (IHI).
Total trading value stood at €795,000 – down by five per cent from the previous week, spread across 15 equities, of which gainers and fallers tallied at six while three closed unchanged.
It was a mixed trading week in the banking sector, with BOV shares locking in a weekly gain of 1.4 per cent, appreciating to €2.23, over a turnover of €82,000.
The gains reflected the market reaction following last Thursday’s announcement by BOV that Insight Investment Management Ltd (IIM) had entered into a tripartite share transfer agreement with BOV and Valletta Fund Management Ltd (VFM) to sell and transfer to BOV its 40 per cent shareholding in VFM, for a total consideration of €5 million, and subject to the terms and conditions set out in the share transfer agreement. Settlement of the transaction took place immediately, and therefore, BOV is now the sole shareholder of VFM. All other service agreements between IIM and VFM will continue in accordance with their respective terms following the transaction.
Conversely, HSBC Bank Malta plc marginally declined by 0.1 per cent to €1.56, as six deals of 7,497 shares were executed.
Moreover, Lombard Bank Malta plc shares dipped by 2.2 per cent to close the trading week at a one-month low of €2.20, over the wek’s highest turnover of €228,000.
The share price of Fimbank plc remained unchanged at $0.98, as two deals of 11,430 shares were struck.
Elsewhere, IHI shares also weighed down on the MSE’s performance, as the equity sank by 4.6 per cent to close at €0.62 – it was active in five deals of 24,380 shares.
Another of the week’s main laggards was the oil and gas logistics and services company Medserv plc, which plunged by four per cent to a 13-week low of €1.70, as six deals of 28,400 shares were struck. Last Thursday, Medserv plc announced that due to unforeseen circumstances, Energy Portugal Unipessoal LDA have been prevented from carrying out exploration activities as planned. This notwithstanding, Medserv continues to operate the base in Portugal and provide related services to ENI.
On a positive note, telecommunications company GO plc extended its previous 3.6 per cent gains by a further 1.7 per cent to close at its 13-week high of €2.97, following 12 deals of 41,700 shares. Last Wednesday, GO announced that Tunisie Telecom had issued a press release stating that all the conditions to TT ML Ltd’s offer for shares in Go plc have now been satisfied.
Meanwhile, 13 deals of 18,971 MIA shares lifted its share price on the back of positive interim financial results for the six months ended June 30, 2016. The equity added 0.7 per cent to its previous 2.4 per cent increase, to close the week at €4.25.
The group registered a pre-tax profit of €12.7 million, compared to €11.4m in 2015. Revenue for the period under review amounted to €31.4 million, a 5.1 per cent rise from 2015 – of which €21.8m were generated from the airport segment, whereas the remaining €9.5m were generated from the retail and property segment. Earnings per share increased to €0.0603.
The directors approved a net dividend of €0.03 per share on all shares settled as at close of business on Wednesday.
Among the list of gainers, Mapfre Middlesea plc shares traded half a per cent higher, at €2.06, on a single trade of a scant 1,000 shares.
In the property sector, Malta Properties Company plc shares took the lead with a 1.9 per cent gain, to €0.535, as seven deals of 10,200 shares were struck.
Additionally, the share price of Plaza Centres plc continued to gain ground as it rose by a further 0.9 per cent to €1.08, over a single deal of 9,000 shares.
On the other hand, the share price of Midi plc fell by 2.7 per cent to close the week at a five-week low of €0.365 during last Friday’s trading session, while Tigné Mall plc shares retreated by one per cent to €1.04, as two deals of 10,000 shares were negotiated.
Meanwhile, the price of Malita Investments plc shares remained unchanged at €0.851, over a volume of 15,000 shares.
The week’s other non-mover was RS2 Software plc, which closed the week at €1.85, despite a turnover of 81,914 shares traded in 37 deals.
Last Thursday, Santumas Shareholdings plc announced that its board of directors had approved the audited financial statements for the financial year ended April 30, 2016. The company registered a pre-tax profit of €2.3 million compared to €455,000 in 2015. Revenue for the period amounted to €2.4 million, a 260 per cent rise from 2015. The increase in revenue included €1.4 million as “increase in fair value of investment properties”. Profit per share increased to €1.05.
In the corporate bond market, total turnover amounted to €877,000 – a week-on-week decline of 47 per cent. Activity was spread across 34 issues, of which nine gained ground, 12 declined and 13 remained unchanged.
The week’s best performer was the six per cent Pendergardens Developments plc secured € 2022 Series II issue, which rose by 4.1 per cent to close the week at €115, while the 4.25 per cent Corinthia Finance plc unsecured € 2026 issue eased by 2.1 per cent to €102.25 on thin trading of 2,500 nominal..
In the sovereign debt market, while long-dated issues traded higher, short-dated issues declined as maturity nears. The 5.1 per cent MGS 2029 (I) appreciated by 0.9 per cent to €146.52, as six deals of 21,000 nominal were transacted. Total trading value amounted to €5.8 million, of which 15 per cent was traded in the 2.5 per cent MGS 2036 issue, which closed the week 0.8 per cent higher at €108.19.
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. 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.