During this three-day trading week, the Malta Stock Exchange (MSE) Index declined by 0.29 per cent to close at 4,416.41 points, prior to the Christmas break. Solid gains recorded in Mapfre Middlesea plc, Fimbank plc, and Malta International Airport plc, failed to offset declines recorded in Bank of Valletta plc, Medserv plc, Maltapost plc, Simonds Farsons Cisk plc and in the traded property equities.
Total turnover amounted to €1.2m as activity was spread across 16 equities, of which six gained ground and 10 closed the week lower.
In the financial services sector, Mapfre Middlesea plc shares more than offset its previous 6.1 per cent decline as its share price rallied by seven per cent to a fresh six and a half-year high of €2.30, on 11 deals of 6,030 shares.
The share price of Fimbank plc also recovered some of its previous losses as it closed the week 4.7 per cent higher at the $0.67 price level - $0.03 shy of its 17-month high of $0.70, as three deals of 44,077 shares were traded.
HSBC Bank Malta plc shares partially recovered from its previous two-week decline having gained 1.15 per cent to close the trading week at €1.76, over 13 deals of 43,902 shares. Following the bank’s previous announcement regarding the cost reduction programme, the bank clarified that applications received for voluntary early retirement are in the process of being reviewed and no decisions have been taken. The Bank will make an announcement on the matter with all the relevant facts in due course according to its market listing obligations.
Meanwhile, its peer, Bank of Valletta plc shares fell by 1.3 per cent to the €2.30 price level - the equity was active over a turnover worth €158k.
Elsewhere, the share price of Malta International Airport plc registered a gain for the first time in four weeks to advance by 2.6 per cent to €4.00 – just shy of its all-time-high of €4.05, having traded over the highest turnover for the week, worth €413k.
On Monday, the company announced that with continuous year on year growth, the company intends to carry on investing in the airport. The company outlined an investment plan of a capital expenditure of €9.8 million for 2016 which include a €6.3 million investment through the rehabilitation of Apron 9, upgrades on Runway 23-05, and the replacement of the instrument landing system as well as a new state-of the art Airport Operational Data Base system. In addition €28 million will be invested in the Terminal Expansion and an estimated €40 million on the development of SkyParks 2.
The telecommunications company, GO plc appreciated by 1.7 per cent for the second consecutive week to close at €3.00, following five deals of 5,122 shares.
In the IT services sector, two deals of 5,873 shares in 6PM Holdings plc pushed its share 1.5 per cent higher to £0.69 - notching its first weekly gain in 15 weeks. Meanwhile, RS2 Software plc shares retracted by half a percent to €3.16, on two trades of 7,541 shares.
Last Monday, Medserv plc announced that it has been granted approval by the Listing Authority for the admissibility to listing on the Official List of the MSE of €30m Unsecured Bonds redeemable in 2026 in any one or a combination of, a 5.75% USD Unsecured Bond redeemable in 2026 of a nominal value of $100 each issued at par - minimum investment and retention amount per investor of $55,000 and a 4.5% Euro Unsecured Bond redeemable in 2026 of a nominal value of €100 each issued at par - minimum investment and retention amount per investor of €50,000. The bonds shall be initially offered to financial intermediaries for subscription, with any unsubscribed amounts offered to the public.
Furthermore, the company is offering 10 million ordinary shares by way of a rights issue on the basis of two shares for every nine shares already held at a share offer price of €1.50 per ordinary share, to shareholders on the company’s register as at December 29, 2015. The proceeds will be used to fund the acquisition of the METS group.
Following this announcement, the share price of Medserv headed south with a drop of 16.5 per cent to close at the €1.75 level over 30 deals of 88,392 shares.
Moreover, Maltapost plc shares fell by 8.7 per cent to €1.80, as it traded for the first time since turning ex-dividend on December 15, 2015. The equity was active across five deals of 110,000 shares.
Simonds Farsons Cisk plc shares added a further 5.5 per cent to its previous week’s 0.8 per cent decline to close the week at its 10-week low of €6.00, over a thin volume of 529 shares, spread across two deals.
Similarly, following five weeks of inactivity, Grand Harbour Marina plc shares fell by 3.9 per cent over one trade of 500 shares, to close the week at €1.00.
It was a negative week in the property sector, as Malta Properties Company plc shares continued on their downward spiral. Its share price ended the week lower for the fourth consecutive week, to close Wednesday’s trading session at €0.471 – down by 3.9 per cent, as 12 deals of 91,299 shares were executed.
Tigne Mall plc shares closed the week 2.6 per cent lower at €0.94, over six trades of 52,416 shares while two deals of 10,000 shares in Malita Investments plc lowered its share price by 0.1 per cent to €0.984.
Among the list of fallers, International Hotel Investments plc extended its recent declines to their fifth consecutive week as its share price fell by 1.3 per cent to €0.77, as 6,306 shares changed hands across four deals.
During the week, Lombard Bank Malta plc announced that during the next board meeting on March 10, the board of directors shall approve the group’s and the bank’s final audited accounts for the financial year ending December 31 and consider the declaration of a final dividend to be recommended to the bank’s AGM to be held on April 28.
In the corporate bond market, total trading value amounted to €247k spread across 22 issues, of which eight gained in value, while fallers and non-movers tallied at seven. Last Wednesday, on its first day of trading, the newly listed 3.5% BOV Subordinated Notes 2030 Tranche 1 Series 1, gained five per cent as it rose to €105 on a single trade of 52,000 nominal while no trades were effected in the Series 2 issue. On the other hand, the 5.75% International Hotel Investments plc Unsecured € 2025 issue closed 5.2 per cent lower at €106.15, as two deals of a minimal 700 nominal were traded.
On the sovereign debt front, out of the 19 traded issues, 16 declined and only three advanced. Total turnover stood at €3.5m - of which 46.6 per cent was traded in the 4.1% MGS 2034 (I) issue, closing the week at 126.70 – down by 0.9 per cent. The 4.45% MGS 2032 (II) issue climbed 1.2 per cent higher to €134.45 on two trades of 120,000 nominal.
This article, compiled by Jesmond Mizzi, managing director of Jesmond Mizzi Financial Advisors Ltd, does not intend to give investment advice and the contents 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 Atlas Group. The directors or related parties and their clients are likely to have an interest in securities mentioned here. For more information contact Jesmond Mizzi at 1/2 St Joseph High Street, Ħamrun, on 21224410 or e-mail jesmond.mizzi@jesmondmizzi.com.