The Malta Stock Exchange (MSE) index registered a minimal 0.1 per cent decline to close the first week of September at 4,462.634 points. The gains recorded in Bank of Valletta (BOV), HSBC Bank Malta plc and GO plc shares did not offset the falls in the share prices of most of the traded property equities as well as those of Medserv plc and RS2 Software plc.
Total trading value stood at €1.4 million – a weekly rise of 91 per cent, spread across 15 equities, of which gainers, fallers and non-movers tallied at five.
It was a positive week for the financial services sector, as BOV shares locked in a weekly gain of 0.9 per cent at €2.25, after a turnover worth €120,000. Similarly, a further 0.6 per cent was added to the share value of HSBC to add to its previous week 1.9 per cent increase to close the week at €1.60, as 16 deals of 71,230 shares were clinched.
However, the share price of Fimbank plc oscillated between a weekly high of $0.975 and a low of $0.87 to then close the week unchanged at $0.975 after 18 deals of 258,115 shares.
Similarly, Mapfre Middlesea plc’s share price did not change, closing at €2.10 after thin trading of 984 shares.
Meanwhile, 16 deals of 50,400 shares in GO plc lifted its share price by 1.6 per cent to €3.10, after reaching an intraweek high of €3.12 – its highest share price in three months.
On a negative note, the oil and gas logistics and services company Medserv plc extended its downward spiral to a fourth consecutive week with a 9.1 per cent drop in share value to a one-year low of €1.50 after €233,000 worth of trading – the week’s highest turnover.
In the property sector, the shares of Midi plc and Malta Properties Company plc (MPC) performed weakly. Midi’s share price fell by 4.1 per cent to close the week at a seven-week low of €0.35 ahead of the announcement last Wednesday of its half-yearly financial report for the six months ending June 30, 2016.
The group reported a pre-tax loss of €1.14 million, compared to a €0.64m loss in 2015. Revenue for the period under review amounted to €3.91 million, a 41 per cent decline from 2015. Sales of property during the period were limited to the last Q1 apartment; the rest had already been sold in 2015. Loss per share stood at €0.004.
The 2015 interim results were significantly impacted by an aggregate net tax credit of €3.9 million, which was due to a change in the final tax on transfers of immovable property. This was a one-off net tax credit that was not repeated in the 2016 financial results.
The equity was traded in three deals of 12,000 shares and there was no change in the share price after the results were announced as one deal of 777 shares was executed at €0.35 last Thursday.
MPC shares gave up some of their previous week’s 4.7 per cent gain when they closed the week 3.6 per cent lower at €0.54, after 131,893 shares were traded in 18 deals.
On the other hand, Tigné Mall plc shares locked in a positive return, fully recovering the previous week’s 1.9 per cent fall with a gain of just under two per cent on the week by reaching a two-week high of €1.04. The equity was active on a low volume of 3,100 shares.
Conversely, Malita Investments plc shares remained unchanged at €0.87 as three deals totalling 55,000 shares were executed.
Elsewhere, Simonds Farsons Cisk plc shares climbed 1.6 per cent to retouch their all-time high of €6.50, initially reached last May, after eight deals of 7,600 shares.
In the IT services sector, RS2 Software plc shares dipped by 3.8 per cent to €1.78 – close to a nine-month low, as 18 deals of 108,627 shares were struck.
Among the list of fallers, Grand Harbour Marina plc shares fell by 3.3 per cent to a four-year low of €0.87 after five deals of 9,492 shares.
Last Wednesday, the company published its half-yearly report for the six months ending June 30, 2016. The group registered a pre-tax profit of €0.35 million, compared to €0.08m in 2015. Revenue for the period amounted to €2.1 million, a 15.6 per cent rise from 2015. Earnings per share rose to €0.01.
The board of directors declared an interim dividend of €0.024 per share, payable on September 13 to registered shareholders as at Wednesday.
The week’s other non-movers were International Hotel Investments plc (IHI) and Malta International Airport plc shares, which traded at €0.64 and €4.24 respectively.
Last Wednesday, IHI announced its half-yearly results for the period ended June 30, 2016. The group registered a pre-tax profit of €1.8 million, compared to a €2.1m loss in 2015. Revenue for the period rose by €15.4 million to €70.8m, a 28 per cent rise from the same period in 2015. The increase in revenue was mainly due to the consolidation of Island Hotel Group Investments Holdings plc, which was acquired in the last semester. Earnings per share rose to €0.003.
Global Capital plc also published its half-yearly report for the six months ended June 30, 2016. The group reported a pre-tax profit of €1.9 million, up by 56.9 per cent from the same period in 2015. This positive performance was credited to stable growth in new business generation and operational efficiencies. Earnings per share stood at €0.037. The directors did not recommend the payment of an interim dividend. The equity was not active during the week.
In the corporate bond market, total turnover rose from €872,000 to €1.5 million. Activity was spread across 36 issues, of which 11 gained on the week and 10 fell out of favour, while 15 stood unchanged.
In the sovereign debt market, of the 23 traded issues, seven advanced while 16 closed in the red. The 2.4 per cent MGS 2041 (I) r issue climbed 0.4 per cent to €106.40 while the 5.1 per cent MGS 2022(I) issue traded at €128.48 - down by 0.4 per cent on a volume of 26,949 nominal across four deals. Total turnover stood at €13.8 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, Hamrun, or on Tel. 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.