The MSE Equity Total Return Index posted a substantial gain of 2.08 per cent, to reach 9,681.119 points. Two of the main drivers of the positive performance were companies which published their financial statements last week, namely, International Hotel Investments plc (IHI), and RS2 Software plc (RS2).
Buying pressure was dominant among the 18 active equities last week, as 12 equities posted gains, while only four traded in negative territory. Activity continued to increase over the previous weekly figure of €1.8 million, as €2.2 million worth of shares traded, over four days of trading.
IHI published its financial statements for 2018, showing an in-crease in revenue of 5.7 per cent to reach €256 million. The increase is mainly driven by improved revenues from existing businesses, and, to a lesser extent, from the acquisition of the Corinthia Palace Hotel as of April 2018.
A net adjustment to the value of property and intangible assets of €3.9 million was registered in 2018, compared to the previous €0.9 million. Also, an €8 million loss on exchange rate fluctuations was recorded last year, compared to a loss of €3.2 million in 2017.
Profit before tax amounted to €8.5 million, 28 per cent higher than the figure for 2017.
The equity soared 6.16 per cent in the aftermath of the announcement, reaching a price of €0.775. A turnover of €51,817 was generated over seven deals.
The top performer, however, was RS2 as its share price hiked 12.33 per cent to €1.64. A total of 118,482 shares changed hands over 31 deals.
The company also published its financial statements for 2018, showing an increase in revenue of 43.9 per cent from the previous year, reaching €25 million. This is mainly attributable to the implementation of the IFRS15 Accounting Standard which affected the way in which the company recognised revenue from an option to convert certain term licence contracts to a perpetuity. As a result, an amount of €5.6 million was added to revenue during 2018.
One of the largest gains of the week was recorded by retail conglomerate, PG plc.
The equity registered gains in all three sessions during which it was active, ultimately closing 7.14 per cent higher at €1.65.
The banking sector recorded mixed performances as the two larger banks both posted minimal losses, while a couple of transactions of 2,000 FIMBank plc shares pushed the equity 3.68 per cent higher to $0.705.
HSBC Bank Malta plc fell by a marginal 0.58 per cent to €1.72, as a result of 17 transactions of a combined 56,313 shares.
Its peer, Bank of Valletta plc, edged 0.37 per cent to settle at €1.33. The equity was one of the most liquid as 216,558 shares were exchanged over 39 deals. On Thursday BOV’s Annual General Meeting will be held and shareholders will be asked to approve several resolutions including the approval of the recommended bonus share allocation to shareholders.
In the telecommunications sector, GO plc lost 3.91 per cent to €4.42. Trading volume totalled to 35,400 shares across 17 deals.
Its spin-off, BMIT Technologies plc, traded heavily as 20 transactions with a combined value of €345,852 were registered. As a result, the share price climbed 1.9 per cent to €0.535.
Malta International Airport plc managed to climb further, to set yet another new all-time high of €6.75.
The 0.75 per cent price increase was the outcome of 12 transactions of 16,478 shares.
MaltaPost plc also traded in positive territory as its share price put on 1.6 per cent to €1.27.
In total, 10 transactions of 81,245 shares were executed.
Medserv plc published its 2018 financial results last week, showing an increase in revenue of 25.7 per cent to reach €36 million.
The increase in revenue is mainly attributable to the recovery within the Integrated Logistics Support Services segment, as the company’s shore base facilities were active for most of the year. However, cost of sales also increased by 26.4 per cent, while finance costs were up by 21.5 per cent to €5.4 million. A loss after tax of €9.5 million was registered, compared to the previous year’s loss of €7.6 million.
The equity traded 19 times during the week, as 155,133 shares changed ownership. The outcome was a loss in value of 1.89 per cent to a price of €1.04, having traded at a low of €0.96.
In the insurance industry, Mapfre Middlesea plc was up 0.85 per cent to €2.38. Four transactions of 2,090 shares were all executed by Tuesday, which was the last day in which investors could purchase shares to be eligible for the gross final dividend of €0.11531 and the special dividend of €0.08696.
Simonds Farsons Cisk plc reached the highest closing price in a year and a half of €9.25. The 2.78 per cent price hike was the result of three transactions of 3,833 shares. The company announced that the Annual General Meeting shall be held on June 24.
Despite trading four times with deals worth €19,788, Grand Harbour Marina plc closed unchanged at €0.74.
The property sector was also a positive contributor to the MSE Index, as three equities posted gains, led by MIDI plc with a 3.39 per cent increase to €0.61.
During the week, the equity generated the largest turnover of €372,226 over 11 deals.
Malta Properties Company plc followed suit with a 1.69 per cent appreciation to a price of €0.60.
A total of 100,029 shares traded over 10 deals. The company presented the resolutions which will be considered at the Annual General Meeting scheduled for June 11.
Such resolutions include the financial statements, as well as the payment of a net dividend of €0.01 per share to all shareholders as at May 13.
Similarly, Plaza Centres plc rose 0.97 per cent to €1.04 as four deals of 14,457 shares were struck.
Meanwhile, a couple of deals worth €10,947 Main Street Complex plc shares had no impact on the share price of €0.63.
Trident Estates plc informed investors that its Annual General Meeting has been scheduled for June 25. No trades were registered in the equity last week.
Performances in the sovereign debt market were mixed, as gainers amounted to 12 and fallers totalled nine. The MSE MGS Total Return Index posted a minimal loss of 0.02 per cent over the previous week, down to 1,048.818 points. Activity in the market was higher once again, as a turnover of €7.5 million was generated, compared to the previous figure of €6.9 million.
The 2.1 per cent MGS 2039(I) partially erased the previous week’s gain, as it drifted 1.48 per cent to €106.89.
In the corporate debt market, from 46 active securities, 21 advanced while 16 headed south, over a turnover of €1.7 million. The MSE Corporate Bonds Total Return Index closed the week 0.36 per cent lower at 1,073.18 points.
The 6% AX Investments plc € 2024 continued on its positive streak, as it posted yet another gain of 2.16 per cent to reach €118.50.
This article, 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 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: 2122 4410.