Last week, the Malta Stock Exchange (MSE) index added to its recent winning streak, recording an increase for the fourth consecutive week. The index advanced by 0.339 per cent to close at 4,697.378 points, thus registering a 1.3 per cent gain in June and a year-to-date gain of 1.44 per cent. Turnover amounted to €1.75 million spread across 15 equities, of which eight gained ground, four fell and three closed unchanged.
Santumas Shareholdings plc shares locked in the best performance, appreciating by 7.7 per cent as 13,838 shares were traded in five transactions to close €0.143 higher at €2, and registering a 14.3 per cent gain in June.
Medserv plc shares rallied by a significant €0.08, or 6.6 per cent, as 15 deals of 34,358 shares were struck, closing at a six-week high of €1.30, and up by four per cent in June.
RS2 Software plc shares also had a good week, gaining 6.2 per cent after the week’s highest turnover of 45 deals of 259,228 shares, to close €0.10 higher at €1.72 – a year-to-date high.
In the banking sector, Lombard Bank Malta plc shares were the only positive performers, rising by €0.065, or 2.8 per cent, after 11 deals of 30,090 shares, to close at a one-month high of €2.365.
On a negative note, Bank of Valletta plc (BOV) shares fully erased the previous week’s gain by falling 0.9 per cent as 124,184 shares changed ownership, to close at €2.18, after 44 deals. Similarly, HSBC Bank Malta plc shares fell by a further 1.4 per cent as 30,488 shares were traded in 13 deals, closing at €2.05.
International Hotel Investments plc (IHI) shares increased by three per cent after taking into consideration the bonus issue effected last Wednesday. The hoteliers’ equity was active in 10 deals of 66,514 shares, to close at €0.62.
GO plc shares edged 0.4 per cent higher as 44,416 shares changed ownership in 12 deals, closing at €3.47. Similarly, PG plc shares increased by 0.1 per cent after 18 deals of 130,550 shares, to close at €1.30.
Malta International Airport plc (MIA) shares slipped by €0.035, or 0.8 per cent, after 10 deals of 25,200 shares, to close at €4.115. The other equities that traded in negative territory last week were Tigné Mall plc shares, which dropped by 3.9 per cent as 139,200 shares were executed in nine deals, closing €0.04 lower at €0.98 after having recovered from a low of €0.901.
Malta Properties Company plc (MPC) shares rose by 1.7 per cent after four deals of 12,500 shares, to close at €0.529. In the same sector, Plaza Centres plc shares traded unchanged at €1 after 10 transactions of 159,150 shares.
Malita Investments plc shares closed unchanged at €0.74 as 87,600 shares changed hands in nine deals. Last Wednesday, the company announced that it has entered into two credit facility agreements with the European Investment Bank and the Council of Europe Development Bank respectively for the purposes of financing the construction of a number of affordable housing units in Malta. This is expected to provide the company with a stable return on investment. The 25-year term facilities are for an aggregate amount of €53.7 million and will finance the construction of about 680 units.
The other non-movers last week were Mapfre Middlesea plc shares which closed unchanged at €1.90. The equity witnessed a sole deal of 9,288 shares.
Last Tuesday, Simonds Farsons Cisk plc (SFC) announced that at its 70th annual general meeting, shareholders approved all the resolutions, including the approval of a final net dividend of €2.4 million paid out of tax-exempt profits, equivalent to a net dividend of €0.08 per ordinary share. Furthermore, the proposed spin-off resolution was also approved. This resolution stated that the spin-off of the company’s shareholding in Trident Estates Ltd is be effected through the payment by the company to its shareholders of a dividend in kind by way of a distribution of the company’s shareholding in Trident on a pro-rata basis. SFC shares were not active last week.
In the corporate bond market turnover totalled to €1.4 million spread across 22 issues, of which 11 advanced, six declined and five closed unchanged. The 3.5 per cent BOV plc € notes 2030 S1 T1 headed the list of gainers after edging 1.4 per cent higher to close at €99.38, while the four per cent IHI unsecured € 2026 was the worst performer, declining by one per cent to close at €102.
Last Monday, Grand Harbour Marina plc (GHM) announced that it has received regulatory approval for the issue of €15 million 4.5 per cent unsecured bonds redeemable in 2027, having a nominal value of €100 per bond, to be issued at par. A maximum amount of €11 million of the proceeds raised from the issue will be used by the company to redeem the seven per cent GHM plc 2017-2020 bonds remaining in issue as at June 23, 2017.
The existing bondholders will be granted preference to subscribe to the new bonds by surrendering the existing bonds, subject to any cash top-up necessary to bring the minimum application amount per existing bondholder to €2,000. Furthermore, the company has also reserved an aggregate amount of €2 million for subscription by shareholders of the company as at June 23, 2017. An aggregate amount of €2 million and any balance of the new bonds not subscribed to by existing bondholders or shareholders has been reserved for subscription by selected authorised financial intermediaries through an intermediaries’ offer. The new bonds are expected to be admitted to the MSE official list on August 22, and trading is expected to start on August 23.
The sovereign debt market succumbed to selling pressure after a long positive run, as out of 25 issues that were active, 19 fell, four increased marginally and two closed unchanged. Turnover amounted to €3.7 million. The 2.1 per cent MGS 2039 (I) was the most liquid issue, witnessing a turnover of €864,121, and closing 1.5 per cent lower at €97.70.
This article, which was compiled by 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 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 Ltd at 67, Level 3, South Street, Valletta, or on Tel. 2122 4410, or e-mail info@jesmondmizzi.com.