The Malta Stock Exchange (MSE) traded flat last week after having traded significantly lower on Monday and Thursday as investors awaited announcements by various listed companies who reported their financial performance.
However, the MSE soared on Friday by two per cent, the highest daily change in nearly five months, after the positive interim results reported on Thursday by Bank of Valletta plc (BOV). The news sent the equity higher, and as is the norm, the upbeat sentiment shifted onto other equities.
HSBC Bank Malta plc was among the main beneficiaries during Friday’s session, yet the equity still traded lower on the week after a sharp fall of three per cent in the previous trading session.
During the week, active equities closed rather mixed as out of the 18 traded equities, only five managed a gain while six fell, and the remaining seven equities closed flat. Turnover across the equity market jumped to €1.3 million, up from €800,000 a week earlier.
RS2 Software plc and BOV shares dominated activity, with almost €400,000 being traded in the IT company. Unusually high turnover was also witnessed in Grand Harbour Marina plc shares, while demand for HSBC shares improved after liquidity dried up the previous week. The MSE closed the week at 3,325.017 points.
In the banking sector, BOV was the only positive performer as the equity gained 1.3 per cent, or €0.03, on Friday after having closed the previous four sessions unchanged at €2.27. But on Friday the equity closed at €2.30 on improved demand following the positive interim results reported by the bank after close of business on Thursday.
The BOV group reported a pre-tax profit of €64.6 million, a 32 per cent increase for the six months ended March 31, 2013. Operating expenses fell marginally over the same period last year, while an impairment charge on bad loans of €12 million has been made, down from €15 million a year earlier.
Meanwhile, fair value of financial instruments showed a significant gain of €13.2 million, compared to €500,000 during the same period last year. Likewise, the share of profits from associated entities reached €8.6 million.
The board has resolved to declare a gross interim dividend of €0.06 per share, which represents a 11 per cent increase over last year’s interim dividend. The dividend will be paid on May 24 to all registered bank shareholders as at May 9.
Meanwhile, HSBC shares closed the week lower by 1.9 per cent, or €0.05, at €2.66 after the equity touched a weekly low of €2.60 on Thursday on one deal of 3,000 shares. But as demand improved on Friday the equity posted a 2.3 per cent gain, yet it failed to reach the previous week’s closing price. As a result, the equity’s performance since the beginning of the year is down 1.5 per cent. Yesterday shareholders received a gross dividend of €0.079 per share.
Lombard Bank plc closed unchanged at €1.95 as 9,400 shares changed hands in four transactions. On the other hand, Fimbank plc failed to move higher as it closed the week at $1 despite having traded at a weekly high of $1.02 on Monday. Similarly, Middlesea Insurance plc closed flat at €0.895.
In the IT sector, RS2 shares managed to close at €1 after trading at a weekly low of €0.96 and a high of €1.02. The equity, which was the most liquid both in terms of volume and value, gained two per cent mid-week but it soon fell into negative territory as sellers accepted lower bids on Thursday. As the price fell, investors jumped in to acquire the equity and it turned positive on Friday on much lower demand.
On Tuesday, the company published its financial results for the year ended December 31, 2012. Group revenue for the year rose to €10.6 million, up from €8.8 million a year earlier, while cost of sales increased to €5.8 million from €4.8 million in 2011. Pre-tax profit jumped 32.5 per cent to €3.1 million. At the annual general meeting, the board of directors will recommend a net dividend of €0.025 per share and a bonus share issue of one share for every 16 held.
Also in the IT business, 6PM Holdings plc gained 8.2 per cent as five deals of 4,500 shares were executed, while Crimsonwing plc lost 3.5 per cent as the equity traded at the €0.55 level.
On the other hand, Go plc shares gained 2.3 per cent to close at €1.58 after having traded at a weekly low of €1.53. The equity’s share price experienced gains on Monday and Friday having traded flat during three sessions as a total of 39,500 shares changed hands.
International Hotel Investments plc shares gained two per cent as the equity regained the €0.79 level. Trading volume more than doubled to 112,500 shares.
Likewise, Malita Investments plc rose two per cent to close at €0.52, Plaza Centres plc ended the week flat at €0.57 while Midi plc’s share price shed five per cent to close at €0.295.
Simonds Farsons Cisk plc (SFC) lost 0.4 per cent to close the week at €2.54 as three thin trades were executed. The company last week also reported their 12-month financial results for the year ended January 31, 2013.
The SFC group recorded a pre-tax profit of €6.4 million, up from €5.1 million in 2012 after revenue jumped to €77.2 million from €70.8 million. A net dividend of €0.07 per share will be recommended for the approval of the AGM.
One deal of 10,000 shares in Maltapost plc left the equity’s share price intact at €1.05, while Grand Harbour Marina plc lost 2.6 per cent on another deal worth over €129,000.
The other company that reported its financial results for 2012 was Global Capital plc, which recorded a loss before tax of €2.2 million compared to a loss of €4.3 million in 2011.
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 67 Level 3, South Street, Valletta or on Tel: 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.