Activity in the sovereign debt market amounted to just under €14 million – compared to €21m last week – spread across 25 issues as investors liquidated some of their recent gains as 21 issues fell and four edged minimally higher.
The recently issued 4.1% MGS 2034 (I) experienced the worst loss for the week shaving 0.5 per cent off its price, to close at €109.43 and also witnessing the highest turnover of slightly over €4.9 million.
Meanwhile, the MSE index recovered some of last week’s losses as it advanced by 0.28 per cent, to close at 3,313.952 points. A total of 11 equities were active, of which four gained ground, three fell in value and four closed unchanged. International Hotel Investments plc (IHI) was the best performer erasing some of last week’s decline, while MIDI plc shares headed the list of fallers.
In the banking industry, Bank of Valletta plc was the only equity with a positive return registering a 0.9 per cent gain across 99 trades of 286,199 shares, to close at €2.25.
Conversely, HSBC Bank Malta plc shares declined by a further 0.5 per cent as 28 deals of 160,313 shares were executed, closing at €1.96.
FIMBank plc shares traded flat at $0.63 across two transactions of 18,569 shares.
International Hotel Investments plc shares recouped 3.7 per cent as 13 trades of 57,267 shares were struck, closing at their weekly high of €0.56. This notwithstanding, this equity is currently the worst performer this year with a 41.1 per cent decline.
Plaza Centres plc shares appreciated by 1.6 per cent over six deals of 546,969 shares, to close at €0.62.
In the same industry, Tigne Mall plc in its Interim Directors’ Statement announced that following the publication of the company’s condensed interim financial statements for the six month period ending June 2014, the Mall continued to be fully let and has also experienced an increase in visitor footfall over the same period last year.
Maltapost plc registered an increase in its share price for the third consecutive week advancing by a further 0.9 per cent over a sole transaction of 2,009 shares to close at €1.18.
Conversely, MIDI plc succumbed to selling pressure as its share price dipped by 4.6 per cent as three trades of 344,000 shares were executed, to close at €0.21. Likewise, Go plc shares dropped by a further 1.7 per cent as 25 trades of 37,819 shares were negotiated, closing at €2.595.
Malta International Airport plc shares closed unchanged at €2.33 as 36,100 shares changed ownership. The local airport operator saw a 2.9 per cent increase in traffic in October – welcoming a total of 421,726 passengers. The UK, being the airport’s top market by representing over 28 per cent of all traffic, saw a minimal drop of 0.8 per cent over October last year.
The other non-movers this week were Simonds Farsons Cisk plc and Santumas Shareholdings plc as they closed unchanged at €3.01 and €2.00 respectively. The former witnessed two trades of 1,596 shares, while the latter was negotiated across a sole transaction of a mere 24 shares.
In its Interim Directors’ Statement, Grand Harbour Marina plc reported better operating results for the group during the first nine months of 2014, with improvements in both Grand Harbour Marina in Malta and at IC Cesme Marina in Turkey, in which the group holds a 45 per cent interest through a joint venture with the IC Cecen Group. The group registered a profit before tax of €0.29 million, compared to a €0.02 million loss registered in 2013. Revenue for the period under review amounted to €4.35 million, an increase of nine per cent from 2013.
In the corporate bond market turnover amounted to €762,395 spread across 32 issues of which eight dropped in value, 16 gained and eight closed unchanged.
Mediterranean Bank plc announced the issue of €15 million 6% Subordinated Unsecured bonds 2019-2024 in Euro and Pounds Sterling (with an over-allotment option of €10 million). The issuer is giving holders of its 6.25% bonds 2015 (the exchangeable bonds), that were included on the bond register as at November 3, 2014 preference to subscribe to the new bonds by surrendering the exchangeable bonds. Minimum application is of €25,000 or GBP 20,000. The net proceeds from the bond issue will be used by the issuer to purchase the 6.25% bonds due on October 30, 2015 from existing bondholders, to meet part of its general financing requirements and will constitute Tier 2 capital of the issuer in terms of the Capital Requirements Regulation. Investors should refer to the prospectus dated November 3, 2014.
PTL Holdings plc – a wholly owned subsidiary of Hili Ventures Limited – also announced the issue of a €36 million 5.1% Unsecured Bonds due in 2024. The minimum to subscribe in the pre-placement offer is of €25,000 while the minimum amount in the public offer has been set at €2,000. The net proceeds from the bond issue will be used by the issuer to repay a short term bank facility, which funds were utilised to finance the acquisition of SAD; to settle the remaining consideration due to the selling parties in relation to the acquisition of APCO; to repay loans issued by Hili Ventures Limited for the purchase of SAD and APCO; to settle expenses incurred in the acquisition of SAD and APCO, to refinance bank loans and for working capital purposes. Investors should refer to the prospectus dated November 3, 2014.
This article which was compiled by Jesmond Mizzi Financial Advisors Limited, 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 is 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.
Jesmond Mizzi Financial Advisors Limited is acting as Sponsors to the Mediterranean Bank plc Bond Issue.
Jesmond Mizzi, managing director of Jesmond Mizzi Financial Advisors is a non-executive director of Hili Ventures Limited.
For further information contact Jesmond Mizzi Financial Advisors Limited at 67, Level 3, South Street, Valletta, or on Tel: 2122 4410, or e-mail info@jesmondmizzi.com.