The MSE Equity Total Return Index erased most of the previous week’s 1.67% gain, having slipped by 1.457%, to close at 8,677.545 points – thus registering a 0.097% increase for the first quarter of 2018 (Q1), as global equities fell in what was a very volatile three months. Last week, activity in the local market was spread across 16 equities of which 10 lost ground and four advanced. Turnover fell to €1.7 million from the previous week’s €2.2 million partly due to the short trading week.
Bank of Valletta plc (BOV) shares headed the list of fallers having declined by 5.3% across the highest turnover of 418,577 shares, spread over 95 trades. The equity oscillated between an 11-week low of €1.78 and a weekly high of €1.91, to ultimately close €0.10 lower at €1.80 – registering no change for Q1, despite their strong results announced last week.
This drop in the share price was due to a company announcement last Tuesday, regarding the legal proceedings which were instituted against the bank in Italy, in which the plaintiffs are requesting the bank to pay €363 million as compensation for the loss registered from the shares of a company which had been settled on trust with the bank in 2009. Although the case is still at its preliminary stage (despite dating back to 2014), the Italian Tribunal has issued a precautionary warrant for €363 million against the bank.
The board stated that after taking legal advice, it believes that it has a strong case both on the merits and in appealing the precautionary warrant and is firmly rebutting the claims instituted against it before the Italian Tribunal. The bank added that it will continue to keep this matter under review and take such measures to ensure that its operations are not adversely affected.
In another announcement last Monday, BOV announced that the board was advised by UniCredit S.p.A. that subject to regulatory approval, it intends to dispose of its total shareholding in the bank to an investor that has already been identified. UniCredit S.p.A. currently holds just over 10% of the issued shareholding of the bank. Investors had been expecting this news for some time as it was a known fact that UniCredit was looking for a buyer and had in fact not even taken up its rights to new shares last year.
HSBC Bank Malta plc shares fully recouped the previous week’s 0.5% loss having increased by 0.5% as 37,627 shares changed ownership over 16 transactions, to close at €1.86 – up by 4.3% in Q1, following the strong dividend announcement by the bank last month.
Mapfre Middlesea plc shares registered the best performance for the week and quarter having appreciated by 5% and 17.9% respectively. The insurance and investments services provider’s shares were active on eight trades of 18,504 shares, to close at an 11-month high of €2.10.
The telecommunications provider GO plc registered a €0.10 or 2.8% drop in its share price as 29,080 shares changed hands over 15 deals, closing at €3.50 – down 1.4% in Q1.
Simonds Farsons Cisk plc (SFC) shares swayed between a weekly high of €7.10 and a low of €6.95 – at which they closed. The food and beverage supplier’s shares were negotiated across eight trades of 7,460 shares and closed the week 0.7% lower, registering an 18.4% decline in 2018.
SFC’s spin-off Trident Estates plc shares rose by €0.05 or 2.7% over five deals of 10,551 shares, closing at €1.90 – thus recording a 53.2% rally from their initial price earlier this year.
Malta Properties Company plc shares added to the previous week’s 4% decline, having slipped by 2.1% as six transactions of 51,452 shares were negotiated, to close at €0.47 – down by 2.1% in Q1.
In the same sector, Malita Investments plc shares fell for the third consecutive week, having decreased by 0.6% as 14 deals of 95,350 shares were executed, closing at a 15-week low of €0.80 – registering a 2.4% loss in 2018.
MIDI plc shares closed unchanged last week at €0.346 on five transactions of 95,042 shares, but has dropped 1.1% this year.
The BOV board stated that it believes it has a strong case
Plaza Centres plc shares extended the previous week’s 2% gain, having advanced by 1.9% as 9,000 shares changed hands over two deals, closing at €1.06. Despite these gains, Plaza has registered a 2.8% loss in Q1. Meanwhile, Tigne Mall plc shares added to the previous week’s 2% decrease, having slipped by 3.1% or €0.03 as one transaction of 2,000 shares was negotiated, to close at a 30-week low of €0.95 – down a whopping 12.8% in Q1.
The oil and gas logistics services provider Medserv plc’s shares were active on six transactions of 19,853 shares and closed €0.04 or 3.5% lower at a 15-week low of €1.10, registering a considerable decline of 12.6% in Q1. The company announced last Tuesday that its board is scheduled to meet on April 27 to consider and approve the annual financial statements of the company for 2017. The company further announced that the forthcoming Annual General Meeting shall be held on May 28, 2018.
Last Wednesday, International Hotel Investment plc (IHI) announced that its subsidiary, Corinthia Hotels Limited, has signed a management agreement to operate a new luxury property opening in the heart of Bucharest, Romania. The Corinthia Grand Hotel du Boulevard Bucharest, originally built in 1867, shall undergo extensive refurbishment before reopening its doors on December 1, 2019 and will offer over 50 rooms and suites, exquisite dining options, a grand ballroom, boutique meeting spaces and luxury amenities. The equity was not active last week.
MaltaPost plc shares last week fell by €0.04 or 2.1% over one trade of 702 shares, closing at €1.86, down 12.3% for Q1.
Malta International Airport plc shares closed unchanged at €4.90 as 24 transactions of 87,290 shares were concluded. The local airport operator’s shares increased by 4.3% in Q1, following reported strong results and the approval by MEPA of their proposed development.
RS2 Software plc shares halted its recent winning streak, having registered a decline of 3.4% after three consecutive weekly gains. The I.T. equity was active on six deals of 15,193 shares and closed €0.05 lower at €1.43. Despite their recent gains RS2 still recorded a 7.1% decline in Q1.
The retail and supermarkets owner PG plc recorded a 1.5% drop in its share price as seven transactions of 31,650 shares were negotiated, to close at €1.36 – down by 2.9% in Q1, following strong gains registered in 2017.
In the corporate bond market 32 issues were active of which nine advanced and eight fell. Turnover fell to €1.05 million from €1.3 million.
Meanwhile, in the sovereign debt market turnover declined to €3 million from €5.9 million. A total of 21 issues were active of which 10 increased and 11 lost ground. The 3% MGS 2040 (I) r was the most liquid issue having witnessed a turnover of €607,655, to close 0.65% lower at €118.25.
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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.For further information contact Jesmond Mizzi Financial Advisors Limited at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email info@jesmondmizzi.com.
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