Yields in the sovereign debt market closed higher last week, as all of the 20 active Malta Government Stocks traded lower. In fact, the MSE MGS Total Return Index shed 0.34 per cent, down to 1,042.808 points. Turnover totalled €1.7 million over 80 transactions.
The largest losses were recorded by the longest dated issues, led by the 2.1% MGS 2039(I), which sank 1.05 per cent to €106.
In the equities market, however, the MSE Equity Total Return Index returned to positive territory. The index partially re-bounded from the previous week’s loss with a 0.15 per cent increase to 9,419.308 points. Investor participation doubled over the previous week’s figure, as €2.8 million worth of local shares traded over 224 transactions last week.
Activity was spread across 20 equities, as five securities advanced while six traded lower.
One of the main drivers of the positive performance was retail conglomerate, PG plc, which continued on the previous week’s positive performance to reach €1.43, the highest closing price in over 15 months. This 2.14 per cent increase in value was the result of eight transactions of a combined 159,100 shares.
Another equity which helped the index to close in positive territory was HSBC Bank Malta plc. The equity fully recovered the previous week’s loss, as it climbed 1.87 per cent to recapture the €1.63 price level. Trading volume amounted to 30,488 shares over seven transactions.
In the same sector, Lombard Bank Malta plc moved in the opposite direction as it added to the previous week’s loss with another, more modest, 0.85 per cent decline in price.
The equity closed at €2.34 after five trades of a combined 43,625 shares were all executed on the opening session of the week.
The company will hold its agm on April 11.
None of the other banking equities registered a change in price, as Bank of Valletta plc closed unchanged at €1.38, despite generating a turnover of €124,772 over 28 deals. Meanwhile, FIMBank plc, which fell ex-div on Thursday, recorded no trades.
BMIT Technologies plc generated one of the largest volume last week, as 816,763 shares were exchanged across 50 deals. As a result, the equity posted a gain of 2.88 per cent, to return to €0.535, which was the first weekly closing price registered by the equity when it started trading back in February.
On the other hand, its parent company, GO plc edged 0.82 per cent, to €4.86. In total, ten trades of 5,550 shares were recorded.
International Hotel Investments plc (IHI) announced that its wholly-owned hotel operating arm, Corinthia Hotels Limited, has made a strategic investment in Global Hotel Alliance. The latter is the world’s largest alliance of independent hotel brands and operator of the multi-brand loyalty programme, DISCOVERY. IHI was the most liquid equity of the week, as 699,022 shares traded across 19 transactions. A minimal 0.65 per cent was shaved off the company’s share price, to €0.765.
Malta International Airport plc followed suit as it surrendered the previous week’s gain with a 0.76 per cent price drop to return to the €6.55 price level. A substantial volume of 47,120 shares traded over 16 deals. Investors who would like to receive the net dividend of €0.09 per share must hold the MIA shares till next Thursday as the equity turns ex-div next Friday.
The company issued an update with the traffic results for the winter months between November and March.
Passenger movements increased by 5.9 per cent over the corresponding period last year, to exceed the two million mark.
The positive performance was driven by an 8.1 per cent increase in aircraft movements as well as a 7.6 per cent increase in seat capacity.
Meanwhile, no change was recorded by MaltaPost plc to the closing price of €1.25, as it traded on slim volume with five transactions of a combined 10,000 shares.
In the insurance sector, Mapfre Middlesea plc announced that its Annual General Meeting shall be held on April 26. Among other resolutions, the AGM will consider the recommended final gross dividend of €0.097826 per share, as well as the final gross extraordinary dividend of €0.0869565. During the week, the equity closed unchanged at €2.36, despite generating a turnover of €59,468.
Similarly, RS2 Software plc opened and closed the week with contrasting sessions, which ultimately cancelled each other out. As a result, the share price closed unchanged at €1.41 over 12 deals of 195,968 shares.
In the food and beverage sector, Simonds Farsons Cisk plc also closed unchanged at €8.75. The equity traded four times, as 29,074 shares changed ownership.
The property market recorded mixed performances, as gainers, fallers, and non-movers in the industry amounted to two-a-piece. The top performer of the week was Tigne’ Mall plc with a 4.35 per cent appreciation to €0.96. A total of three deals of 37,000 shares were registered. The company’s 2018 financial statements show a 3.2 per cent increase in profit before tax, to €3.5 million. Revenue was 5.7 per cent higher than 2017, as it totalled €6.5 million.
During 2018, the company acquired 132 car parking spaces from MIDI plc for a consideration of €4.6 million. This was mainly financed by a bank loan, which pushed the company’s bank borrowings to assets ratio to 24 per cent, slightly higher than the 23 per cent registered in 2017.
The positive performance translates to an Earnings per Share figure of €0.0436, compared to the €0.0411 recorded in 2017. The board of directors is recommending the payment of a final net dividend of €0.0131 per share.
Main Street Complex plc followed suit with a 3.17 per cent price increase, to return to its original IPO issue price of €0.65. Traded volume amounted to 29,150 shares over six deals.
The board of directors is scheduled to meet on April 8 to consider and approve the company’s financial statements for 2018. The board shall also consider the recommendation of a final dividend to the Annual General Meeting.
On the other hand, Malta Properties Company plc was the worst performer last week, as three deals of 32,830 shares dragged the share price 3.45 per cent to €0.56.
Likewise, Malita Investments plc fell 2.3 per cent to a price of €0.85. This was the outcome of eight transactions of 59,440 shares.
MIDI plc posted losses mid-week, but eventually managed to recover to an unchanged price of €0.63. Trading volume totalled 354,850 shares over 23 trades.
In the same sector, Trident Estates plc traded five times, as 15,037 shares changed hands. The share price however, closed unchanged at €1.33.
Plaza Centres plc announced that its board of directors is scheduled to meet next Friday, April 12 to approve the group’s financial statements for 2018. However, the equity was not active during the week.
In the corporate debt market, from 39 active securities, 14 posted gains while nine lost ground. Total turnover amounted to €2.2 million over 185 transactions, compared to the previous week’s figure of €1.7 million. The MSE Corporate Bonds Total Return Index closed the week flat at 1,070.359 points.
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, on tel. 2122 4410 or email info@jesmondmizzi.com.