The Malta Stock Exchange (MSE) index ended the first week of August up by 0.49 per cent, at 4,228.224 points – a level last reached in June 2008. Pushing the index higher were shares of HSBC Bank Malta plc following the announcement of the group’s interim results last Monday. On the other hand, Fimbank plc headed the list of fallers on the back of disappointing interim results.
Total turnover stood at €1.06 million – a week-on-week decline of 64 per cent – as investors shifted their focus to the fixed income market. Out of the 14 traded securities, four rose, while fallers and non-movers tallied at five.
In the banking industry, HSBC shares enjoyed five straight days of positive returns, to close the week five per cent higher at a three-month high of €1.88. The banking equity was negotiated in the second highest turnover of the week, representing 23 per cent of total trading value.
The interim results issued last Monday heightened market interest in the equity, as the group registered a profit before tax of €36 million – €4 million lower than the same period last year. Net operating income was up three per cent year-on-year.
The company reported that all of its main business lines were profitable during the period. However, the continuing low interest rate environment, muted commercial lending growth and an increase in compliance and regulatory costs had a negative impact on profitability.
The board declared an interim gross dividend of €0.051 per share (€0.033 net of tax), payable to shareholders on the bank’s register of shareholders as at Friday. The increase in dividend payment over last year reflects a higher payout ratio due to a lower charge in connection with the General Banking Risk Reserve.
Meanwhile, the share price of Bank of Valletta plc traded flat at €2.30 for most of the week, to then settle marginally lower at €2.299 on Friday’s trading session. BOV was negotiated in the highest turnover for the week, amounting to €299,000.
In the same line of business, the share price of Fimbank plc sank by 9.1 per cent on Thursday as the market reacted to the losses announced in the company’s half-yearly results. The group reported a loss after tax of $8.64 million compared to a profit of $1.45 million registered in the comparable period ending June, 2014 – which were restated for discontinued operations. Net interest income for the period under review amounted to $16 million, a rise of 16.7 per cent from 2014. The equity closed the week at a three-week low of $0.45 after six deals of 25,390 shares.
Meanwhile, Mapfre Middlesea plc shares were active on thin volume, ending the week at a fresh six-year high of €2.03 – a weekly gain of 0.9 per cent.
Lombard Bank Malta plc shares appreciated by 2.5 per cent to close the week at a 41-month high of €2.10. The equity was active in four transactions of 23,212 shares.
The other gainer for the week was Malita Investments plc, whose shares strengthened by 2.2 per cent after a total turnover of €83,000 – a two-month high.
Elsewhere, Malta International Airport plc shares closed the week unchanged at €3.95 as 16 deals of 18,263 shares were executed. On Thursday, the company announced an increase of 7.1 per cent in passenger traffic for the month of July and a rise of 6.9 per cent year-to-date when compared to the same period of 2014.
The share price of telecommunications company Go plc retracted to a weekly low of €3.45, closing the week marginally higher at €3.498. The equity thus registered a 0.06 per cent decline on the week, ahead of its half-yearly results due to be announced this Tuesday.
In the IT services sector, RS2 Software plc continued on its downward trajectory as its share price declined by 2.3 per cent to close the week in the red, at €2.14.
Similarly, the share price of Midi plc declined by 1.5 per cent over the week, to close at €0.34, as 21,500 shares changed hands.
No movement was noted in the share price of Maltapost plc, Simonds Farsons Cisk plc, Santumas plc and Tigné Mall plc, as the equities traded at €1.6, €5.25, €2.05 and €0.87 respectively on relatively low turnover.
Global Capital plc reported that the group registered a profit after tax of €222,000 for the financial year ending December 31, 2014, compared to loss after taxation of €3.7 million registered in 2013.
The life insurance company recorded a profit after tax of €2 million in 2014, while the health insurance agency’s profit after taxation amounted to €574,000. The company reported smaller impairments in its property portfolio in 2014, amounting to €323,000. Similarly, the losses incurred in the group’s investment company declined to €464,000 in 2014.
6pm Holdings plc reported that the group registered a profit before tax of £413,199, compared to £385,263 registered in the comparable period ending June 2014. Revenue for the period under review amounted to £4.4 million, a decline of 8.3 per cent from 2014. Meanwhile, earnings per share increased to £0.02.
In the corporate bond market, 32 issues were negotiated, of which 14 gained in value, seven declined, while 11 closed unchanged.
Total turnover increased by 181 per cent, to €2.6 million, of which 14 per cent were dealt in the 5.5 per cent Mediterranean Investments Holding plc Unsecured € 2020 issue. The bond traded for the first time last Monday and recorded its first weekly gain of six per cent, as the bond price increased to €106.01 from par.
In the sovereign debt market, total turnover increased by 26.8 per cent, from €7 million to €8.8 million, as 25 issues were traded – of which 12 appreciated, 10 lost ground, while three closed unchanged. The highest gain was in the 2.3 per cent MGS 2029 (II) issue, up by 1.94 per cent; while the Three per cent MGS 2040 (I) declined by 0.6 per cent at €108.62, having traded at a high of €110 and a low of €108.
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.