The Malta Stock Exchange (MSE) index reversed course last week, having closed down by 0.1 per cent at 4,563.341 points. Despite a solid gain by International Hotel Investments plc (IHI), falls in nine equities, primarily large capitalised equities Bank of Valletta plc (BOV) and HSBC Bank Malta plc, dragged the index marginally lower.
Total trading value amounted to €1.4 million – no change from the previous week, spread across 20 equities, of which six rose, nine fell in value and three stood unchanged.
Fimbank plc’s share price notched its 10-week winning streak, as it rallied by a further 9.7 per cent to a fresh multi-year high of $0.85, on 13 deals of 167,876 shares. Last Wednesday, the bank announced that at its annual general meeting (AGM), all resolutions on the agenda were approved, including the authorisation of 25 bonus ordinary shares with a nominal value of $0.50 for every share held by registered shareholders as at April 10.
Conversely, three per cent was wiped off the value of HSBC shares after 14 deals of 35,201 shares. The equity closed the week at €1.60.
BOV retreated by 1.3 per cent to €2.24, after turning ex-div last Wednesday, after the week’s second highest turnover worth €199,000.
Mapfre Middlesea plc shares traded 0.4 per cent lower at €2.24 on a single deal of just 500 shares.
Global Capital plc shares soared by 12.5 per cent to €0.45, as 8,214 shares were traded in three deals.
IHI plc locked a weekly gain of 3.2 per cent at €0.64 in the final hour of trading last Friday, as 58,068 shares were traded in 10 deals.
GO plc’s share price rose by 1.4 per cent to €3.55, on 12 deals of 22,478 shares. This followed the company’s interim directors statement outlining the changes in the GO Group – the spin-off of its property arm, Malta Properties Company plc and the 51 per cent shareholding in both the Cyprus-based Cablenet Communication Systems Ltd and Kinetix IT Solutions Ltd.
Regarding the company’s ongoing sales process potential investors have submitted a number of binding offers which are currently being evaluated. The preferred bidder will be selected later this month.
Five deals involving 20,400 shares in Medserv plc lifted its share price 0.6 per cent higher as it closed the week at €1.795.
Maltapost plc shares closed down three per cent on the week after thin trading of only 100 shares to fall to a three-month low of €1.92. Last Tuesday, Maltapost plc announced its interim financial statements for the six-month period ending March 31, 2016. The increase in international mail services, registered mail and parcel activities boosted revenue by five per cent to €14 million.
However, pre-tax profit fell to €1.7 million – down by 34 per cent from the same period in 2015. The results are in line with forecasts as one-off items in the six months ending March 2015 were not repeated in the period under review. Earnings per share stood at €0.03.
6PM Holdings plc shares plunged by five per cent to £0.95 – £0.05 shy from its all-time high of £1.00 – after eight deals of 69,781 shares.
RS2 Software plc fell 0.2 per cent to €3.789 after recording the week’s highest turnover of €586,000.
In the property sector, Malita Investments plc was the week’s sole gainer, rising 0.1 per cent to €0.90 after four deals of 19,000 shares.
There was no movement in Plaza Centres plc’s shares, which stood at €1.08 as just 24 shares were traded.
But it was a bad week for other the traded property equities. Tigné Mall plc shares fell 7.8 per cent to a five-week low of €1.06, after two deals of 48,200 shares. Last Friday, in its interim directors statement, the company reported a rise in tenant sales compared to the first quarter of 2015 as the mall continues to be fully let. The company’s financial position is improving and the outlook for the rest of 2016 remains positive.
Malta Properties Company plc (MPC) shares lost more ground with a three per cent drop to close the week at €0.543. The equity was traded in 13 deals of 52,471 shares. In its interim directors statements, MPC reported stable revenue streams in line with expectations and continuous efforts to redevelop the company’s commercial property portfolio, worth €54 million.
Midi plc shares retreated by 2.6 per cent to €0.38, following five deals of 16,100 shares. Last Thursday, the company announced that during its AGM all of the resolutions on the agenda were approved, including the payment of a net dividend of €0.007 per share by May 27.
Malta International Airport plc’s share price was unchanged at €4.37, despite 18 deals of 22,694 shares.
Similarly, Simonds Farsons Cisk plc closed the week unchanged at €6.30, following three deals of 600 shares. Last Thursday, the company announced its preliminary financial statements for the year ended January 31, 2016. The group reported a pre-tax profit of €10.1 million – up by 22.8 per cent from the previous year. Revenue for the period under review rose by 7.2 per cent to €84.9 million. Earnings per share stood at €0.374.
The board of directors will recommend for approval a final net dividend of €0.0733 per share to be paid on June 30 to registered shareholders as at May 27.
The week’s other non-movers were Grand Harbour Marina plc and Loqus Holdings plc shares, which traded at €0.90 and €0.131 respectively.
In the corporate bond market, total turnover stood at €1.5 million – a week-on-week increase of 73.3 per cent, spread across 37 issues, of which 16 rose, eight closed the week lower and 13 stood unchanged. The 4.5 per cent Izola Bank plc € Unsecured 2025 issue recorded the strongest weekly performance with a 3.2 per cent gain to close at €109.94.
Midi plc announced that subject to regulatory approval, new secured bonds will be issued at par worth €50 million, redeemable in 2026, as the seven per cent Midi 2016-2018 bond, denominated in euro and GBP, will be redeemed.
In the sovereign debt market, out of the 25 active issues, 14 rose and 11 fell out of favour. The two per cent MGS 2020 (V) issue recorded the highest liquidity of €527,000, representing nine per cent of total turnover of €5.4 million.
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.