The Malta Stock Exchange (MSE) Index extended last week’s positive returns by a further two per cent, closing at 3,676.861 points yesterday. The local market was only active on Monday and Friday due to the festive season, marking the end of 2013 and the start of 2014.
The index gained 2.2 per cent on Monday and fell marginally on Friday. Monday’s rally lifted the index to a gain of 14.75 per cent in 2013.
During the week, activity was spread across 14 issues of which six advanced, four fell and another four remained unchanged. International Hotel Investments plc (IHI) headed the list of gainers, while Medserv plc was the worst performer for the week.
GO plc (GO) appreciated by 0.9 per cent on Monday across 12 deals of 52,568 shares, to close 2013 at an all-time high of €1.825.
Forthnet SA informed the investing public that on December 24, Emirates International Telecommunications LLC (EITL) had notified them about the change of EITL’s indirect participation in the share capital of Forthnet from 40.0714 per cent to 44.022 per cent. EITL participates indirectly in the share of Forthnet through Emirates International Telecommunications (Malta) Ltd (EITML), GO, Forgendo Ltd and Giradena Ltd, which is owned 50 per cent by Forgendo Ltd and 50 per cent by Massar Investments LLC. Forgendo Ltd, which is also a direct shareholder of Forthnet, is owned 50 per cent by EITML, a company controlled by EITL, and 50 per cent by GO. EITML further holds 60 per cent in GO and has the right to appoint five out of eight members of the board of directors of GO. EITL controls Giradena Ltd jointly with Massar Investments LLC. The three per cent threshold was crossed by a share purchase made by Giradena Ltd on December 19, when 356,000 shares of Forthnet were acquired.
After close of trading on Friday, GO announced that the board of directors decided to instruct Forgendo Ltd to participate in the share capital increase in Forthnet of up to €29,143,372.50, with a right of pre-emption and oversubscription for existing shareholders.
GO will provide Forgendo with 50 per cent of the funding required by Forgendo to participate in the Forthnet capital raise. The other 50 per cent is to be provided by EITML. GO has the option to convert its part of the loan to equity within the period of six months from the date on which the new Forthnet shares begin to trade. If GO elects not to do this, EITML shall convert its share of the loan into equity and shall be obliged to repay GO’s portion of the loan on behalf of Forgendo in exchange for additional shares.
Malta International Airport plc shares also increased by 0.5 per cent on Monday as 12 trades of 13,275 shares were executed to close at a record high of €2.16. Meanwhile, the top-performing equity for the week was IHI as it rallied by €0.11 or 13.1 per cent over 22 transactions of 150,300 shares on Monday, to close at €0.95 – a price last reached in October 2012.
Island Hotels Group Holdings plc gained 2.2 per cent as four deals of 11,000 shares were struck yesterday, closing €0.02 higher at €0.92.
In the banking industry, Bank of Valletta plc was the top performing equity as it rallied by 0.8 per cent as 39 deals of 75,987 shares were negotiated, to close at €2.65. The gain was mainly registered on the last session of 2013, but also kicked-off 2014 in positive territory. Conversely, HSBC Bank Malta plc slipped by one per cent over six transactions of 4,899 shares yesterday, closing €0.025 lower at €2.575.
FIMBank plc reported on Tuesday that it has entered into an agreement with the current shareholders of PRVI Faktor – a factoring services and finance company with operations in central-eastern Europe and south-eastern Europe. The agreement is for an initial investment of €4 million, representing an acquisition of 40 per cent of the participation interests of the company valued at €2,112,280 and an additional capital injection of €1,187,720, with an option to increase its investment to 60 per cent. Completion of this agreement is subject to competition clearance, regulatory consents and the satisfaction of conditions.
MIDI plc rose by 3.6 per cent over seven transactions of 74,000 shares, to close at €0.29. The gains were registered on Monday while yesterday the equity traded flat. On a negative note, Medserv plc stumbled by 5.2 per cent as five trades of 56,095 shares were negotiated, closing €0.07 lower at €1.28 on the last trading day of 2013.
In the IT sector, both 6PM Holdings plc and RS2 Software plc sank by 1.4 per cent and 1.3 per cent respectively on the first day of trading in 2014. The former equity was dealt over a sole transaction of 3,000 shares, closing at £0.69, while the latter witnessed eight deals of 38,330 shares, to close at €2.25. Crimsonwing plc traded flat at €0.85 over two transactions of 15,333 shares.
Other non-movers for the week were Middlesea Insurance plc, Plaza Centres plc and Tigne Mall plc as they all closed the week unchanged at €0.90, €0.575 and €0.515 respectively.
In the corporate bond market turnover amounted to €156,713, spread across 16 issues in which five gained ground, three fell and another three closed the week unchanged. The 7% MIDI plc GBP 2016-2018 was the top performer as it soared by 1.4 per cent. Meanwhile, in the sovereign debt market 13 issues were active of which 10 slipped, two were unchanged and the 5.2% MGS 2031 (I) rose marginally. Total turnover was €351,989.
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: 2122 4410, or e-mail info@jesmondmizzi.com