The Malta Stock Exchange (MSE) Index fell by a marginal 0.02 per cent, to close at 3,392.248 points. Activity was spread across 15 equities of which five declined, three appreciated and seven closed unchanged. Total turnover within the equity market amounted to just over €1 million.
RS2 Software plc (RS2) shares were by far the best performers for the week having registered gains on four consecutive sessions. The shares oscillated between a weekly low of €2.41 and a weekly high of €2.68, gaining 10.3 per cent. The equity was negotiated across 24 deals of 133,261 shares, to close at an all-time high of €2.68. This positive performance was partially as a result of the announcement released by the company on Wednesday after close of business, in which it report that the company has entered into a license agreement for its proprietary software BankWORKS® with a global processing company. The total value of the agreement is of €12 million. The agreement specifies that the license is granted for five years, with an option to convert to a perpetual licence in accordance with the terms. In addition, RS2 has entered into a services agreement with the licensee, obliging the licensee with an annual minimum spend of €1.5 million for the first three years of the agreement.
Malta International Airport plc shares appreciated by €0.06 or 2.7 per cent over ten trades of 28,170 shares – to close at a record high of €2.26. The local airport operator registered an impressive increase of 6.4 per cent in passenger movements in May 2014 when compared to May 2013.This was the first time that the 400,000 passenger mark was exceeded in the month of May.
These positive figures were due to an added seat capacity of 4.9 per cent and an overall seat load factor of 76.5 per cent for the month.
In the banking industry, Bank of Valletta plc shares registered a 0.9 per cent decline across the highest turnover for the week of €349,491. The equity was negotiated across 55 trades of 164,156 shares, closing €0.02 lower than last week at €2.12.
Similarly, FIMBank plc shares slipped by 0.1 per cent over five transactions of 4,950 shares, to close at $0.749. The trade finance bank announced that it has received authorisation from the Listing Authority for the admissibility to listing on the official list of the MSE of up to 77,009,494 new ordinary shares in the Company having a nominal value of $0.50 which will be issued as a result of a rights issue to the shareholders on the register of the company as at May 21, 2014.
Shareholders shall be entitled to subscribe to 16 new ordinary shares for every 41 ordinary shares, at a subscription price of $0.65. If subscribed to in full, the rights issue will raise gross proceeds of $50 million.
Any lapsed rights from the rights issue will be offered to financial intermediaries during an intermediaries offer. Furthermore, Tunis International Bank S.A. (TIB) has, by means of an underwriting agreement, undertaken in favour of the bank to subscribe to such number of new ordinary shares under the rights issue not subscribed to during the intermediaries offer. The obligation of TIB under the underwriting agreement is limited to a maximum value of $5 million.
On the other hand, both HSBC Bank Malta plc and Lombard Bank Malta plc shares closed the week unchanged at €2.11 and €1.45 respectively. The former was negotiated across 25 trades of 40,033 shares, whilethe latter witnessed a sole transaction of a mere 110 shares.
MaltaPost plc shares advanced by €0.03 over five trades of 25,000 shares, closing the first week of June 2.7 per cent higher at €1.15. Conversely, International Hotel Investments plc shed 2.3 per cent of its shares price as three deals of 1,985 shares were struck, closing at €0.78.
On Wednesday, Simonds Farsons Cisk plc shares declined by 0.7 per cent over three trades of 6,000 shares, to close at €2.98. Similarly, Tigne Mall plc shares dipped by one per cent across two deals of 155,500 shares, closing at €0.515.
Other non-movers for the week were GO plc, Loqus Holdings plc, Medserv plc, MIDI plc and Malita Investments plc at €1.94, €0.105, €1.27, €0.24 and €0.55 respectively.
In the corporate bond market turnover amounted to €450,705 spread across 21 issues of which six lost ground, four edged higher and 11 closed unchanged. The 5.6% GlobalCapital € 2014/16 headed the list of fallers as it depreciated by 3.5 per cent. The newly listed 6% Pendergardens € 2022 appreciated by 3 per cent. Island Hotels Group Holdings plc announced that its new bond issue was fully subscribed and that the company received a total of 5,336 applications from the general public representing over €69.1 million. The company shall be satisfying all applications under the issue to the general public for amounts up to €3,000 in full and in the case of applications for amounts over €3,000; the company will likewise be satisfying the first €3,000 and allocating a further 12.4468 per cent of the remaining balance.
Mariner Finance plc announced that it is offering to the public a €30 million bond (with an over-allotment option of €5 million) with a 5.3% coupon maturing on July 3, 2024. The net proceeds of the bond will be used to refinance bank borrowings and for funding investments in ports or port operations and storage or logistics facilities related to the core and ancillary operations of the group, general corporate funding purposes of the group and further reducing the corporate indebtedness of the group. Applications are now available at authorised financial intermediaries.
From the sovereign debt front, a total of 25 issues were active, of which 15 rose, seven decreased and three closed unchanged. Total turnover amounted to over €7.4 million. The 5% MGS 2021 (I) was the most liquid issue as it witnessed a turnover volume of more than 2.2 million nominal.
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: 21224410, or email info@jesmondmizzi.com.