The Malta Government Stocks market had a very positive week, as out of the 22 active issues, 17 posted gains and three headed south. The longer dated issues registered the largest price movements, with the top performer the 4.65% MGS 2032 (I), appreciating by 2.02 per cent to €136.36 and the 2.4% MGS 2041 gaining 1.64 per cent to close at €107.
The corporate debt market was also dominated by positive performances, as 20 of the 42 active issues increased in value while only seven lost ground. The best performer was the 4.25% Corinthia Finance plc Unsecured € 2026 which continued its recent recovery by advancing another 2.45 per cent, closing at €103.99. At the other end of the spectrum, the 4.35% Hudson Malta plc Unsecured € 2026 closed at €102.50, translating to a 1.77 per cent loss in value.
In the equities market, the MSE Equity Total Return Index closed 1.283 per cent higher at 8,937.522 points. In total, 20 equities were active, half of which headed north, while fallers amounted to five. Turnover generated totalled €2.1 million, which is significantly higher than the previous week’s figure of €1.2 million.
Last Monday, RS2 Software plc issued an interim directors’ statement, highlighting the company’s developments and achievement during the third and fourth quarter of 2018. The directors stated that the group has successfully executed its business strategy, rolling out its services to more clients in the managed services business while also maintaining the revenue lines from the licensing segment.
As a result, the equity hiked an impressive 21.74 per cent closing at €1.40. A substantial volume of 268,602 shares traded across 48 transactions.
In the banking industry, HSBC Bank Malta plc registered the only positive movement this week, as it increased 0.55 per cent in value, to close at €1.83. Trading volume amounted to 88,772 shares across 14 deals.
Its peer, Bank of Valletta plc closed unchanged at €1.31, despite generating a significant trading volume of 320,347 shares over 68 transactions.
In the same sector, FIMBank plc posted a significant loss of 4.52 per cent, settling at $0.74. The equity traded heavily as 194,997 shares were exchanged across seven trades.
Telecommunications company GO plc was the most liquid equity, as €759,179 worth of shares changed ownership across 27 deals. This resulted in a 1.54 per cent rise in price to close at €3.96.
The company announced that an application has been made to the Listing Authority for all the ordinary shares of BMIT Technologies plc to be admitted to listing on the regulated market, and a prospectus has been submitted for approval, with respect to the Initial Public Offering of 49 per cent of the said shares. The company confirmed that as stated during BMIT’s Extraordinary General Meeting earlier this month, GO’s registered shareholders as at January 3 will be given some form of preference to participate in the offer.
Last Tuesday, PG plc published the company’s unaudited financial statements and interim directors’ report for the six months ended October 31. During the period, the group recorded an increase in turnover of five per cent to €51.2 million compared to the same period last year.
The increase was driven by improved turnovers both in the Pama Shopping Village, and to a lesser extent, in the Pavi Shopping Complex, in response to the ongoing refurbishment programme. Growth within this sector is also being felt by third party tenants, which in turn further increases the group’s rental income, due to the nature of the rental contracts.
As expected, turnover in the Zara and Zara Home franchises decreased by 35 per cent, due to the fact that the Sliema outlet was closed for expansion and refurbishment. The store has now been reopened since November 28.
In terms of trading, four trades of a combined 13,000 shares pushed the equity upwards by 1.53 per cent, to €1.33.
International Hotel Investments plc recorded five trades of a combined 28,000 shares, all of which were executed at a price of €0.60.
The shares price of Malta International Airport plc declined by 1.69 per cent to €5.80, as 11 deals of 12,137 shares were struck.
Stocks market had a very positive week
MaltaPost plc published the audited financial statements for the financial year ended on September 30, 2018. During this period, the company registered a profit before tax of €2.62 million. Revenue increased by 4.5 per cent to €40.2 million, due to growth of services related to international mail, parcels and document management services. However, expenses grew at a faster pace as they were 6.2 per cent higher at €37.7 million, as a result of higher operational activities. Total Assets were up 15.9 per cent to €47.9 million.
The board of directors recommends to the AGM, the payment of a final net dividend of €0.04 per share, to all registered shareholders as at January 14.
The announcement had no immediate impact on the equity price, as it closed unchanged at €1.60, despite seven deals of 21,902 shares, which were all executed on Tuesday.
The best performer of the session was GlobalCapital plc, as it hiked 23.88 per cent to €0.332, albeit on three trades on slim volume. On Friday, the company announced that further to an announcement issued back in March, it has now submitted an application for a Rights Issue which shall be rolled out during 2019, subject to regulatory approval.
In the same sector, Mapfre Middlesea plc traded flat at €1.95, also on slim volume.
In the food and beverage sector, Simonds Farsons Cisk plc was active late during the week, as three deals of a combined 2,424 shares were registered. As a result, the equity posted a solid gain of six per cent, reaching €8.75.
A single transaction of 6,000 Medserv plc shares, shaved 3.36 per cent off the share price, down to €1.15.
In the property sector, the share price of Plaza Centres plc dropped 1.96 per cent to €1.00, as 39,580 shares changed hands.
Its peer, Midi plc (Midi) partially recovered the previous week’s loss as it recouped 3.08 per cent to close at €0.67. This was the outcome of six trades of 16,040 shares.
Tigné Mall plc (Tigné) surrendered a small portion of the previous week’s significant gain, as it drifted 1.01 per cent lower to €0.98. A total of 50,200 shares traded across seven transactions.
Last Monday, Tigné and Midi announced that the final deed of sale and purchase with respect to the Garage Complex known as the T1 Car Park has been executed on December 14. The property, which comprises 132 car parking spaces, shall be transferred to Tigné for the remaining period of the 99-year emphyteutical grant, signed between Midi and the government of Malta back in the year 2000.
Malita Investments plc also traded in positive territory, as it climbed 3.53 per cent to €0.88. Trading volume totalled 22,200 shares across six trades.
The best performer in the sector was Malta Properties Company plc, as it advanced by a further 9.43 per cent following the previous week’s modest gain, to close at €0.58. The equity traded 14 times, as 40,048 shares were exchanged.
Similarly, Trident Estates plc recouped all of the previous week’s loss, as it advanced 1.35 per cent to recapture the €1.50 price level. Turnover amounted to €21,169.
A sole deal of 2,000 Main Street Complex plc shares had no impact on the share price of €0.65.
Last Wednesday, Santumas Shareholdings plc published its interim unaudited financial statements for the six-month period ended October 31, 2018. The company registered a loss before tax of €58,107, compared to a loss before tax of 43,672, for the same period in 2017. This translates to a loss per share of €0.02, compared to the previous €0.013. The catalyst for this performance was a decrease in the fair value of financial assets of €234,903, compared to last year’s loss in value of €107,669.
In the Prospects MTF market, the Malta Stock Exchange announced on Thursday that it has approved the application and authorised the issuance of the Company Admission Document of €3,900,000 Testa Finance plc 5.5 per cent Bonds 2029, having a nominal value of €100 per bond.
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 more information, contact Jesmond Mizzi Financial Advisors Limited at 67, Level 3, South Street, Valletta, or on tel: 21224410, or e-mail info@jesmondmizzi.com.
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