The MSE Share Index ended in positive territory for the third consecutive session with another 0.1% increase to a new four-month high of 3,269.045 points.
Today’s upturn was mainly due to the marginal increases in the share prices of the two large banks. HSBC Bank Malta plc’s equity edged 0.2% higher to €2.76 across two deals totalling 27,400 shares. Similarly, Bank of Valletta plc moved 0.1% higher today to regain the €2.27 level on volumes of 9,118 shares.
GO plc advanced for the third successive session with a further 0.7% increase to yet another 19-month high of €1.40 across two deals totalling 2,500 shares.
Further demand also emerged for 6pm Holdings plc shares as the equity continued to advance following the sharp appreciation in the early part of the week. 6pm edged 2.4% higher today to £0.42 on a single deal of 1,498 shares. 6pm’s equity soared by 44.8% this week following Monday’s announcement.
On the other hand, Crimsonwing plc slid 1.8% lower to the 54c level on continued high volumes of 65,000 shares.
All other active equities today ended the session unchanged. Most notably, Malta International Airport plc held on to the €1.79 level across six trades totalling 13,500 shares. This morning, the legacy carrier Turkish Airlines announced that it will be operating a Malta-Turkey flight three times a week as from this summer.
This afternoon, Island Hotels Group Holdings plc published its financial statements for the year ended October 31, 2012.
The figures showed a loss after tax amounting to just under €1 million compared to the €0.24 million loss registered in the previous financial year. The main reason for the increased loss is the 11.8% increase in operating expenses to €27.66 million which offset the 8.9% growth in revenue to €32.9 million.
In their review, the directors explained that the group continued to experience difficulties in its timeshare product with most sales being executed on a trade-in basis with only the increased value of the upgraded sales taken to profit. Moreover, hotel occupancy was flat despite the better-than-expected tourist arrivals to Malta.
Looking ahead, the directors expect its retail and contract catering business to further improve its performance in the coming years once the initial investments in the new ventures takes effect.
Moreover, the group is planning to commence the development of the Oasis project (ex-Hal Ferh site) as well as the upgrade of its Coastline Hotel and Radisson BLU Hotel. However, these projects are dependent on the Group’s ability to raise fresh equity capital which is also needed to reduce some of the Group’s debt. In this respect, the directors revealed the challenges being faced by the Group to source new equity funding.
On the bond market, the Rizzo Farrugia MGS Index again moved into positive territory with a 0.1% increase to 1,008.106 points as the benchmark 10-year German Bund yields slipped back to below the 1.6% level on the back of the possibility of a reduction in the US Federal Reserve quantitative easing programme as well as the revised forecasts of the European Commission for the Eurozone for 2013.
The European Commission now expects the 17-nation bloc to contract by 0.3% during 2013 as opposed to the previous forecast of a 0.1% growth citing worsening conditions of the region’s labour market.
Yesterday afternoon, the Treasury of Malta announced the prices of the new Malta Government Stock issues as follows: (i) 3% MGS 2019 (III) at €100.50 giving a yield to maturity of 2.915% and (ii) 4.5% MGS 2028 (II) at par giving a yield to maturity of 4.5%.
The Treasury is offering a total of €200 million in any combination of the two new stocks. Subscriptions for the public open on Monday and close on Wednesday.
The Prospectus and application forms may be found here.
www.rizzofarrugia.com