Following two weeks of negative results, the Malta Stock Exchange (MSE) index recouped 0.31 per cent last week to close at 4,211.923 points. This rise was supported by significant gains in the shares of Medserv plc (MDS), HSBC Bank Malta plc and International Hotel Investments plc (IHI), which more than offset falls in the share prices of Mapfre Middlesea plc (MMS), Go plc and Bank of Valletta plc (BOV).
In the equity market, turnover increased by 6.8 per cent to €1.78 million spread over 15 securities, of which nine rose, five fell, and one closed unchanged.
On the back of positive interim results issued last Thursday, MDS rallied by 5.5 per cent on Friday, to close the week at an all-time high of €2.50, after the week’s second highest turnover, worth €242,000. The group registered a pre-tax profit of €4.5 million, compared to €564,000 in 2014. The significant rise in profit is mainly due to a decline in the low margin business.
Following its recent downward trend, IHI’s share price recorded a late run last Friday as the equity climbed 1.2 per cent to close at €0.785 after two deals of 46,022 shares. In its interim results for the six months ended June 30 published last Friday the group registered a net loss of €894,000, compared to a loss of €7.68 million in the comparable period of 2014. Revenue for the period amounted to €55.38 million, a drop of 0.37 per cent from the previous year. The increase in revenue generated from hotels in Malta, Prague, Budapest, Lisbon and London was offset by declines in Russia and Libya as a result of policial and economic turmoil.
HSBC’s share price traded 2.9 per cent higher, halting a two-week losing streak to close the week at €1.80 after 26 deals of 86,733 shares.
BOV shares continued on their downward trajectory shedding a further 0.8 per cent last week to close at €2.25. BOV was last week’s most heavily traded equity with a total value of trading worth €673,000, or 38 per cent of total turnover.
Lombard Bank Malta plc’s share price resumed its upward trend as the equity rose by 0.7 per cent to retouch a multi-year high of €2.115. The equity was active in 13 deals of 73,387 shares. In its interim results published last Tuesday the group reported a pre-tax profit of €4.31 million for the six months ended June 30, compared to €3.27 million in the same period of 2014, mainly due to Maltapost’s improved performance, in which Lombard has an indirect stake in through Redbox Ltd.
Simonds Farsons Cisk plc shares maintained a positive stance as the share price extended to an all-time high of €5.50. The equity was active on thin volume.
Tigné Mall plc’s share price ended the week up by 4.5 per cent to close at an all-time high of €0.93, as 12,175 shares changed hands. Another property equity, Plaza Centres plc, also put in a strong performance to register a week-on-week gain of 4.1 per cent to close at €1.01. It was the equity’s third consecutive week of positive gains.
Malita Investments plc partially erased its previous week’s 1.5 per cent decline as the equity climbed 0.4 per cent to €0.94 after three deals of 10,638 shares.
Maltapost plc shares closed the week at a fresh all-time high of €1.636 as 4,986 shares were traded, pushing the equity up by 0.4 per cent.
On a negative note, MMS shares snapped a five-week winning streak as its share price sank by 4.4 per cent to close at €2.15. The insurance company’s shares were traded in nine transactions of 30,633 shares.
6PM shares fell for the second consecutive week, slipping by 3.4 per cent to close at £0.710. The equity was active on thin volume, as 3,000 shares changed hands in three deals. Meanwhile RS2 Software plc’s share price remained unchanged at a record high of €2.30 despite have the third highest trading turnover worth €213,000.
Go plc’s share price fell 2.5 per cent last week to close at €3.48 after 12 deals of 21,150 shares. On Friday, the company announced a merger between Go and its subsidiaries Mobisle Communications Ltd and Worldwide Communications Ltd.
Malta International Airport plc (MIA)’s share price fell minimally by 0.3 per cent to end the week at €3.89.
Santumas Shareholdings plc announced last Monday that the company made a pre-tax profit of €516,000, down 28 per cent from €715,000 in 2014. Revenue for the period fell 16 per cent from the previous year, amounting to €689,000, while earning per share fell to €0.2523. In the upcoming annual general meeting shareholders are set to approve a bonus share issue of one share for every 10 held by registered shareholders as at January 8, 2016. There was no trading in Santumas shares last week.
Global Capital plc also announced its interim results, reporting a pre-tax profit of €1.176 million compared to a €0.967 million loss in 2014. Revenue for the period amounted to €1.358 million, a 1.96 per cent rise from 2014. Earnings per share increased to €0.037.
In the corporate bond market, total turnover stood at €1.75 million – a 0.2 per cent fall week-on-week. Activity was spread over 29 issues, of which seven rose, 13 lost ground and nine remained unchanged.
The five per cent Hal Mann Vella Group plc secured bonds € 2024 issue recorded the week’s strongest peformance as it climbed 0.9 per cent to close at €111 after three deals of 9,700 nominal. The 4.8 per cent BoV plc sub € 2020 issue headed the list of fallers following a four per cent drop to €104.
On the sovereign debt market, total turnover fell 48.8 per cent from €3.97 million to €2.03 million. All the 17 traded issues fell in price and consequently a rose in yields. The 4.65 per cent MGS 2032 (I) issue retreated by 2.2 per cent to close at €130.86, with its yield-to-maturity up to 2.415 per cent. Similarly, the 4.1 per cent MGS 2034 (I) issue also closed the week 2.2 per cent at €124.99, to yield 2.456 per cent. The decline reflects the sell-off in the broader European bond and equity market.
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, Ħamrun, or on Tel. 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.