The Malta Stock Exchange (MSE) index was up by 0.39 per cent on the week to close at 4,339.412 points, after having touched an intra-week high of 4,348.209 points, buoyed by positive performances of large weighted stocks, namely Bank of Valletta plc (BOV), Malta International Airport plc (MIA) and International Hotel Investments plc (IHI), as well as Maltapost plc, RS2 Software plc and Medserv plc, which closed at all-time highs. On the other hand, declines in the share prices of Mapfre Middlesea plc and most of the traded property companies dragged the index lower.
Total turnover increased from €1.08 million to €1.24 million, spread across 16 equities, of which seven rose, five declined and four remained unchanged.
In the financial services sector, buying interest in BOV shares lifted their price by 3.3 per cent, to close at a seven-month high of €2.44 as investors awaited the announcement of the bank’s annual financial results. The equity was traded in the week’s highest turnover of €550,000.
After close of trading on Friday, BOV’s board of directors approved the audited results for the financial year ended September 30.
The group registered a pre-tax profit of €117.9 million compared to €104.1 million in 2014. Net interest income for the period under review amounted to €144.8 million, a rise of 14.9 per cent from 2014. Earnings per share increased to €0.22. Moreover, a final gross dividend of €0.085 per share (€0.05525 net) is being recommended. This would make for a total gross dividend for the year of €0.124 per share (€0.0806 net).
A bonus share issue of one share for every 12 shares held is being recommended and will be allotted to shareholders on the bank’s share register as at close of business on January 15, 2016.
Meanwhile, HSBC Bank Malta plc shares registered a 2.7 per cent decline to end the week at €1.80, as 140,873 shares were traded in 30 deals in the week’s second highest turnover worth €254,000. Mapfre Middlesea plc’s share price plunged 3.7 per cent to €2.12 after a single deal of a scant 288 shares.
Fimbank plc shares remained unchanged at $0.43, as 37,450 shares changed hands in three deals.
IHI shares edged 0.5 per cent higher to €0.78 after four deals of 41,882 shares. In its interim directors’ statement, the company announced that its positive trends continued in the year’s third quarter and expectations for the rest of the financial year remain buoyant. Excluding the six months’ results of Island Hotels Group (IHG), the EBITDA results for IHI properties on a like-for-like basis will show a 16 per cent rise over 2014. Similarly, management company Corinthia Hotels International Ltd is expected to register record profits in 2015. Current forecasts indicate record profit performance in all of IHI’s hotels. Further growth is forecast for the upcoming year with new development and management agreements with third-party investors in cities and resorts across Europe and the Gulf.
MIA’s share price advanced by a slight 0.3 per cent, partly offsetting its previous one per cent decline to close the week at €3.86, as 16 deals of 27,437 shares were negotiated.
RS2 Software plc shares rose 2.4 per cent on the week to close at a record high of €2.55, following 15 deals of 56,699 shares, representing 11.5 per cent of total turnover.
Elsewhere, the share price of oil and gas logistics and services company Medserv plc gained 1.8 per cent to reach an all-time high of €3.15 after closing at €3.095 for the past four weeks. The equity was active in two deals of 1,000 shares.
Maltapost plc shares notched a five-week winning streak as its share price rose 0.1 per cent to close at another record high of €1.821, after three deals of 6,864 shares.
Among the list of gainers, GO plc shares partially recovered from the six per cent decline recorded in the previous week, as it gained 1.5 per cent to close at €3.30, after 10 deals of 18,700 shares.
The company announced that at the extraordinary general meeting last Thursday, shareholders approved the authorisation for the board of directors to seek bids from bona fide offerers for the company’s issued share capital and to disclose information, including unpublished price-sensitive information as deemed appropriate to enable prospective bona fide offerers and their advisers to make, confirm, withdraw or modify any bona fide offer for the company shareholding.
On the other hand, most of the traded property companies settled the week in the red, with Midi plc heading the list with a 2.8 per cent dip, to close the week at €0.35; one deal of 10,000 shares was struck.
Malita Investments plc shares eased 1.6 per cent lower to €0.92 after a single deal of 10,000 shares.
Plaza Centres plc’s share price retreated one per cent on the week to close at €0.99, as 13,000 shares changed hands in three deals.
Meanwhile, Tigné Mall plc shares stood unchanged at €0.95 after two deals of 16,400 shares.
There was no movement in the share price of Grand Harbour Marina plc after a thin volume of 2,000 shares traded at €1.
Simonds Farsons Cisk plc closed the week unchanged at €6, after having touched an all-time high of €6.10 intra-week, as four deals of 3,161 shares were negotiated.
In the corporate bond market, total trading volume stood at €1.38 million – more than a twofold rise week-on-week. Activity was spread across 24 bonds, of which eight advanced, seven fell and nine closed unchanged. The most liquid issue was the 4.5 per cent Hili Properties plc Unsecured € 2025. It traded in a turnover worth €691,000 – representing half the total turnover – closing the week at €107.26. The 5.75 per cent International Hotel Investments plc Unsecured € 2025 issue climbed 4.5 per cent to €111.85 after two deals of 13,600 nominal.
In the sovereign debt market, total turnover stood at €9.88 million – up by 52.7 per cent on the week. Out of the 25 traded issues, 12 rose, 11 fell and two closed unchanged. There was significant turnover worth €4.47 million in the recently issued 2.3 per cent MGS 2029 (II) FI Oct 15 r issue, which closed the week unchanged at €105.37.
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.