As we reported earlier this month, the government will be issuing the 62+ Malta Government Savings Bond. Details about the issue were published last Thursday. The bonds will be offered at a coupon of three per cent per annum and will be issued at the price of €100 per bond and mature on September 13, 2022. The bonds cannot be held jointly with any other individuals or purchased under nominee.
Bondholders may withdraw the full amount invested in the bond before maturity; however, a penalty equivalent to three months’ interest will be deducted from the final payment, except in cases of proven serious health reasons – in such cases, the penalty will be waived.
Eligible investors can apply for a maximum amount of €10,000 and for a minimum of €500 in multiples of €100 thereafter. Applications will open on September 4 and close on September 6 or earlier at the discretion of the issuer. Application are now available from authorised financial institutions.
The MSE Equity Total Return Index fell by 0.329 per cent, closing at 8,981.788 points. Turnover amounted to €1.2 million spread across 14 equities, of which eight fell, three advanced and three closed unchanged.
Lombard Bank Malta plc shares traded flat at €2.36 on a sole deal of 1,200 shares. Pre-tax profit for Lombard Bank group – consisting of Lombard Bank Malta plc and Redbox Ltd (the company holding the bank’s shares in Maltapost plc) increased by 7.6 per cent to €4.7 million for the first six months of 2017, compared to €4.4m in the same period last year. Net interest income at bank level for the first half of 2017 rose by 1.9 per cent from €7 million to €7.1m.
The unfavourable interest rate environment persisted, putting further downward pressure on interest margins. The bank managed these rates, which were absorbed and not passed on to its customers. This cost was mitigated by additional interest earned from a volume increase of 13.5 per cent in customer loans and advances, thus resulting in a positive net interest margin. Earnings per share (EPS) increased from €0.057 to €0.06. No interim dividend payment is being recommended.
Maltapost plc shares closed unchanged at €1.98 as five deals of 1,900 shares were negotiated.
Bank of Valletta plc shares fell 1.3 per cent after 48 deals of 114,539 shares, to close at €2.12. Conversely, HSBC Bank Malta plc shares increased by €0.03, or 1.6 per cent, as 19 transactions of 37,107 shares were struck, closing at €1.94.
Fimbank plc shares fell $0.049, or 6.1 per cent, after two deals of 156,141 shares, closing at $0.75.
International Hotel Investments plc (IHI) shares edged 0.5 per cent as 3,000 shares changed ownership over two deals, to close at €0.615. The company reported that in the first six months of 2017, the IHI group registered an rise in revenue of €44.5 million over the same period last year. The group registered a pre-tax loss of €2.3 million, compared to a €1.9m profit in the same period last year. The drop was predominantly caused by a substantial increase in finance costs. These amounted to €11.6m compared to €7.9m in 2016.
The net foreign exchange translation differences of a weakening sterling and the devaluation of the ruble also had an adverse impact on the company’s profits. EPS fell from €0.003 to -€0.001. No interim dividends were announced.
Malta International Airport plc shares decreased by 0.7 per cent as 16 deals of 88,401 shares were executed, closing €0.03 lower at €4.17.
Malita Investments plc shares declined by 1.2 per cent after four transactions of 41,500 shares, to close at €0.75. Conversely, Tigné Mall plc shares rallied by 8.6 per cent as two deals of 2,500 shares were executed, closing €0.077 higher at €0.977.
Malta Properties Company plc shares increased by a further 0.6 per cent as seven deals of 54,926 shares were executed, to close at €0.533.
RS2 Software plc shares fell by a minimal 0.5 per cent after 10 transactions of 87,646 shares, closing at €1.78. The group generated total revenues of €10.6 million for the first half of 2017, compared to €9.7m in the comparable period of 2016. Net increase in revenue from services and managed services partly offset a decline in licence fees.
Profit before tax amounted to €2.5 million, an increase of 38 per cent when compared to the same period last year. In addition to the net increases in revenue when matched to expenses, this positive result emanated from the fact that the group was impacted by exchange losses which were lower by 52 per cent compared to prior year, and by managing to double the amount of development costs, which was capitalised over the same period last year.
EPS during the period increased from €0.008 in 2016 to €0.009 in 2017.
Due to further substantial investment in infrastructure and business development, the board did not declare an interim dividend.
Santumas Shareholdings plc shares slipped by 2.2 per cent after 12 deals of 19,856 shares, to close €0.049 lower at €2.151.
PG plc shares decreased by 0.7 per cent after five deals of 34,385 shares, closing at €1.39.
GO plc shares closed unchanged at €3.599 as nine transactions of 35,800 shares were struck.
Medserv plc reported that turnover for the six-month period ended June 30 amounted to €13.6 million compared to the €17.3m in the comparative period last year. This was a result of a slowdown in performance across the group’s operations. However, operations are expected to pick up in both Integrated Logistics Support Services and Oil Country Tubular Goods towards the end of this year.
The group registered a pre-tax loss of €2.9 million, compared to the profit before tax of €275,851 registered in the same period in 2016. EPS decreased to - €0.061. No interim dividends are being recommended. The equity was not active last week.
In the corporate bond market, 34 issues were active, of which 15 increased, seven fell and 12 closed unchanged as turnover amounted to €1.2 million.
In the sovereign debt market, turnover totalled to €5.5 million spread across 26 issues, of which 12 rose, 11 declined and three closed unchanged. All but three long-dated issues advanced marginally last week.
This article, which was compiled by 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 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 Ltd at 67, Level 3, South Street, Valletta, or on Tel. 2122 4410, or e-mail info@jesmondmizzi.com.
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