The share index registered its fifth consecutive positive performance as it advanced by a further 0.11 per cent to 4,540.440 points – the highest level since late April 2008. Trading volumes declined to a two-week low of €351,000.
Today’s gains were principally led by RS2 Software. The equity advanced by a further 2.4 per cent to yet another all-time high of €3.61,5 across reduced volumes totalling 22,500 shares.
Medserv and Simonds Farsons Cisk closed at €1.64,9 (+1.8 per cent) and €6.30 (+0.8 per cent) respectively on low volumes. Yesterday, the oil and gas logistics services company announced that it has now concluded the purchase of the entire issued share capital of METS UAE and METS Oman as well as the 90 per cent shareholding of METS Iraq (collectively known as the “METS Group”).
As opposed to what was stated in the previous communications to the market, the consideration price for the above transactions has been reduced to USD45 million, reflecting the 10 per cent shareholding of METS Iraq that was retained by Jarrett Asset Holdings Corporation.
In the banking sector, Bank of Valletta and HSBC both registered marginal declines. BOV retreated to the €2.21,7 level (-0.1 per cent) across 31,733 shares. Last Friday, the bank announced the issuance of €50 million 3.5 per cent Tranche 2 subordinated bonds 2030 at par (100 per cent) forming part of its Debt Issuance Programme launched in October 2015.
Likewise, HSBC slid by 0.5 per cent to the €1.64 level across 32,800 shares. On Monday, HSBC announced their 2015 financial results, which showed an improved adjusted (i.e. excluding the effect of the non-recurring item pertaining to the early voluntary retirement scheme) profit before tax of €61.5 million.
The board of directors is recommending a final gross dividend of 2c6 per share (1c7 net), which together with the 5c1 gross interim dividend paid in September 2015, results in a total gross dividend for the year of 7c7 per share (5c net) – representing a 20 per cent increase compared to the 2014 adjusted dividend.
Shareholders as at the close of trading on March 14 will be eligible to receive the final dividend on April 19 subject to shareholder approval at the upcoming annual general meeting to be held on April 15.
In the property segment, Malita Investments lost 2.1 per cent to the 93c level on activity of 45,000 shares whilst Malta Properties Company retreated by 1.8 per cent to the 56c level on volumes of 85,375 shares.
The board of directors of Malita will meet on Tuesday to consider and approve the company’s financial statements for the year ended December 31. It will also consider the declaration of a final dividend.
Within the same sector, MIDI retained the 35c level across 25,690 shares. The company’s board is scheduled to meet on March 28 to consider and approve the company’s financial statements for the year ended December 31. The board will also be considering the recommendation of a final dividend.
Meanwhile, three other equities closed today’s trading session unchanged. Malta International Airport (2,236 shares) briefly touched an intra-day all-time high of €4.76 before closing flat at the €4.72 level. The airport operator is expected to reveal its financial results for 2015 this afternoon.
No changes were registered to the share prices of FIMBank and International Hotel Investments as they closed at 63c5US and 72c across 37,051 and 11,400 shares respectively. FIMBank will be announcing its 2015 results on March 15.
On the bond market, the RF MGS Index climbed to a two-week high to 1,139.629 points (+0.15 per cent) as global stock markets fell sharply on renewed pressures on the price of oil.
Indeed, the 10-year benchmark German Bund yield slumped from 0.19 per cent of yesterday to 0.13 per cent today – the lowest level in almost a year. On the economic front, a survey mirroring the confidence among German businesses came in at its lowest level since 2014, suggesting deteriorating confidence in the European Central Bank’s ability to prop up the economy in the current volatile environment.
Subscriptions from the public for the two new Malta Government Stocks close today. Tenders in the 1.5 per cent MGS 2022 (IV) and the (ii) 2.5 per cent MGS 2036 will need to be lodged by Monday.
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