Over the past holiday-shortened week, the Malta Stock Exchange (MSE) index rose by 0.87 per cent to 4,508.544 points, as gains were recorded in the banking equities. There were also solid gains in GO plc and RS2 Software plc as the latter equity recovered some of the previous week’s losses. Heading in the opposite direction were the share prices of International Hotel Investments plc, Medserv plc and Malta Properties Company plc.
Total turnover amounted to €1.41 million – down by 54.1 per cent, as activity was spread across 16 equities, of which seven advanced, six lost ground and three stood unchanged.
Lombard Bank Malta plc shares led the rebound in the banking sector, having closed 4.7 per cent higher at €2.25, thus more than recovering from the previous week’s 1.4 per cent decline as 200,023 shares changed hands. Last Tuesday, the bank announced that the special administrator of Cyprus Popular Bank Public Co Ltd had approved the disposal of its fully paid up ordinary shares held in Lombard Bank.
Bank of Valletta shares pared their previous week’s 1.2 per cent loss to close the week at €2.269, on almost €200,000 worth of trading. Meanwhile, HSBC Bank Malta plc shares closed unchanged at €1.58 per share, following 10 deals of 14,794 shares.
Fimbank plc shares locked in a weekly gain of 6.6 per cent, to close at $0.725, as 147,983 shares were traded in 10 deals.
Elsewhere, GO plc shares notched their seventh weekly gain – up by a further 1.5 per cent to €3.45, on light volume of 7,400 shares.
In the IT services sector, RS2 Software plc shares recovered a third of the previous week’s 12.4 per cent decline, having closed 4.2 per cent higher at €3.70. RS2 recorded a turnover of 32 deals of 61,960 shares. Meanwhile, two deals of 25,000 shares in 6pm Holdings plc lifted its share price by 2.7 per cent, to close in positive territory for the first time in four weeks, at £0.77.
The share price of Malta Properties Company plc closed 2.1 per cent lower at €0.563 despite the announcement of positive annual financial results for the year ended December 31, 2015. The group reported a pre-tax profit of €1.42 million, compared to the €886,000 the previous year. Due to a tax credit of €447,000, the profit after tax rose to €1.86 million. Rental income for the year rose by 6.8 per cent to €3.17 million. The board of directors has recommended to the annual general meeting (AGM) that no dividend be paid.
The company also announced that it is currently discussing and exploring proposals for a potential mixed-use development which would involve the company’s St George’s Exchange site in St Julian’s.
Malita Investments plc shares were down by half a per cent to €0.95 on the week, as the equity traded ex-dividend last Wednesday; it was active in two transactions of 10,400 shares.
Meanwhile, Midi plc shares closed their fourth consecutive week unchanged at €0.36, although a high volume of 193,250 shares were traded in eight deals.
Last Friday, Tigné Mall plc announced that the company’s board of directors will meet on April 15 to consider and approve the company’s audited financial statements for the financial year ended December 31, 2015, and whether to recommend a dividend to the company’s AGM.
The share price of International Hotel Investments plc traded 1.5 per cent lower on the week, to close at €0.64, as 123,550 shares changed hands in 16 deals.
The week’s main laggard was Medserv plc, as the equity gave up some of its previous gains with a 2.9 per cent fall in value. The equity closed the week at €1.65 as 11 deals of 77,730 shares were struck.
Last Tuesday the company announced its financial results for the year ended December 31, 2015. The group reported a pre-tax profit of €6 million, compared to €3.1m the previous year. The positive performance for 2015 was as a result of strong business flow conducted out of Malta in support of the ongoing operations offshore Libya, the performance of Medserv (Cyprus) Ltd and growth in engineering and maintenance services continued to grow in 2015. Revenue for the year amounted to €42.2 million – up by 31 per cent from the previous year.
Earnings per share stood at €0.092. Moreover, no final dividend was recommended due to the substantial expansion programme.
Elsewhere, two deals of a scant 1,167 shares in Simonds Farsons Cisk plc wiped out its previous 0.3 per cent gain, dragging its share price back to €6.00.
Meanwhile, Malta International Airport plc shares added a further 0.2 per cent to its previous 1.8 per cent decline, to close the week at €4.41, having traded in four transactions of 5,120 shares.
The share price of Global Capital plc touched a low of €0.36, to then settle the week unchanged at €0.40, over a volume of 3,450 shares in four deals.
In the corporate bond market, total turnover was €670,000, a weekly drop of 55.3 per cent, spread across 29 bonds, of which four rose, nine closed lower and 16 stood unchanged. The six per cent AX Investments Plc € 2024 issue rose by 1.3 per cent to €117.00, while the 5.5 per cent Mediterranean Investments Holding plc unsecured € 2020 issue inched 2.8 per cent lower at €103.00, on six deals of 20,600 nominal.
Corinthia Finance plc also announced that regulatory approval was obtained for the €40,000,000 4.25 per cent unsecured bonds issue redeemable in 2026. The bonds will be issued at par with a nominal value of €100 per bond. The board of directors has resolved to redeem the €39,927,600 6.25 per cent unsecured bonds 2015-2019 on September 24, and holders of the maturing bond as at the cut-off date of March 15, 2016, were granted preference to subscribe to the new issue, including the option to apply for additional bonds. The current bond holders of the redeemable bond must submit their application form by April 8. Applications must be for a minimum value of €2,000. An intermediaries’ offer will take place on April 12 in the event that the total amount of applications received from existing bondholders does not exceed €40 million.
In the sovereign debt market, 21 of the 25 active issues fell, while gainers and non-movers tallied at two. Recording the best performance for the week was the 4.3 per cent MGS 2033 (I) r issue, having edged one per cent higher to €134.30, while the 7.8 per cent MGS 2018 issue marked a 0.9 per cent decline to close the week at €117. Total trading value amounted to €6.5 million.
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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.