During the week, International Hotel Investments plc (IHI) announced that more than €148 million subscriptions were received for the issue of the four per cent IHI plc Secured Bonds 2026, while MIDI plc received over €100 million for the four per cent MIDI plc Secured Bonds 2026.
This implies that IHI and MIDI managed to collect a total exceeding €248 million – €143 million more than the size of the combined bond issues. IHI and MIDI will announce their basis of acceptance and allocation in the coming days.
Meanwhile, yesterday, the Accountant General announced the issue of two new Malta Government Stocks, 1.5 per cent MGS 2022 (IV) Fungibility Issue and 2.4 per cent MGS 2041 (I). Any combination of the two stocks shall in the aggregate be €100 million subject to an over-allotment option of €60 million in the event of over-subscription. The offer will be opening to the public on Monday, August 1, 2016.
In the equity market, the Malta Stock Exchange index extended its negative trend by 0.7 per cent, to close at 4,465.797 points. Turnover amounted to €788,276 spread over 15 equities of which eight declined, six gained ground and one closed unchanged.
The heftiest losses this week were witnessed in the IT services sector: RS2 Software plc shares stumbled by 5.6 per cent across 24 deals of 61,180 shares, to close at €2.01 (Intra-week its share price touched a high of €2.119 and dropped to a low of €1.96); while 6pm Holdings plc shares declined by 5.6 per cent over three trades of 50,000 shares executed at £0.85.
Meanwhile, Bank of Valletta plc shares were the only non-movers for the week, having closed at €2.21. The banking equity was active on 48 transactions of 71,902 shares.
On a positive note, FIMBank plc shares headed the list of gainers having advanced by four per cent across seven deals of 80,750 shares, closing at $1.019.
Similarly, Lombard Bank Malta plc shares appreciated by €0.05 or 2.3 per cent over eight deals of 31,235 shares, to close at €2.25.
Conversely, HSBC Bank Malta plc shares partially erased the previous week’s gain, having declined by 1.3 per cent, to close at €1.57. The equity witnessed 20 transactions of 59,100 shares.
Elsewhere, GO plc shares slipped by 1.4 per cent across 10 transactions of 12,600 shares, closing at €2.82. On Thursday GO plc reacted to media comments in relation to the sales process for its shares to Tunisie Telecom (TT). The company stated that extensive due diligence was carried out, legal advice had been obtained and that the process was overseen by international advisers to ensure that no conflicts of interest issues arose. TT has stated to the MFSA and to GO that the parliamentary debate on the acquisition is a standard part of the democratic process in Tunisia and robust measures are in place to ensure arm’s length negotiations with Emirates International Telecommunications for its shareholding in GO. TT confirmed its healthy financial condition and that the bid for GO is fully funded. TT also confirmed that it has a strong record of profitability and has consistently posted net profits in past years with significant dividends being paid out to its shareholders.
Malta Properties Company plc shares eased 0.2 per cent lower to €0.507 over 11 deals of 25,300 shares.
International Hotel Investments plc shares declined by 4.4 per cent across three deals of 4,575 shares, closing €0.03 lower at €0.65. The equity was active across three trades of 4,575 shares.
Similarly, Medserv plc shares fell by €0.04 or 2.2 per cent as 30,483 shares changed ownership, to close at €1.80.
Mapfre Middlesea plc issued its interim financial results for the financial year ended June 30, 2016. The company reported a drop in profit before tax from €15.2 million to €5.7 million, when compared to the first six months of 2015. This decline was attributed to a one-off reinsurance cost adjustment in 2015 and stronger returns on financial investments during the first six months of 2015. Earnings per share stood at €0.024. The board of directors did not propose to pay an interim dividend. The equity was not active this week.
Simonds Farsons Cisk plc shares dipped 0.5 per cent lower over four trades of 2,525 shares, to close at €6.25. Conversely, Plaza Centres plc shares gained €0.03 or 2.8 per cent as 10,000 shares changed hands across three deals, closing at €1.10.
Malta International Airport plc shares rallied by €0.10 as five transactions of 7,000 shares were struck, closing 2.4 per cent higher at its weekly high of €4.25.
On a similar note, MIDI plc shares registered a 1.9 per cent gain over eight trades of 50,000 shares, to close at €0.377.
Malita Investments plc shares erased the previous week’s loss having recouped by 1.1 per cent, to close at €0.89. The equity witnessed seven deals of 45,500 shares.
In the corporate bond market 19 issues were active of which two advanced, 10 declined and seven closed unchanged. Turnover amounted to €440,149. The 3.5% Bank of Valletta plc € Notes 2030 S1 T1 was the most liquid issue having witnessed a turnover of €119,017.
In the sovereign debt market turnover amounted to €4.8 million spread across 20 issues of which seven declined and 13 gained ground. The five per cent MGS 2021 (I) and the three per cent MGS 2040 (I) were the best performers having both increased by 0.5 per cent, to close at €125 and €113 respectively. Meanwhile, the 5.1 per cent MGS 2029 (I) headed the list of laggards having declined by 0.5 per cent, to close at €144.33.
This article, 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.
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 .