The MSE Equity Total Return Index returned to positive territory with a 1.3 per cent gain as investors’ appetite for large capitalised equities increased.
Bank of Valletta plc (BOV), HSBC Bank Malta plc (HSBC), Malta International Airport plc (MIA), GO plc and International Hotel Investments plc (IHI) all moved higher. The local equities’ index is back above the 9,000 points level as 10 equities gained, five ended in the red and four finished flat. Trading value amounted to just under €3 million, almost half the previous week’s turnover.
Last week also marked the end of the month of February, during which the local equities’ index gained 2 per cent following a drop of 1.8 per cent in January.
GO plc shares were the most active as €749,000 traded over 42 deals, up from 86,180 shares the previous week. The equity ended the week higher by 2.24 per cent at €4.56 after trading at a weekly low of €4.46. GO plc, which is up 15 per cent since end of the December, is the best performing equity this year.
BMIT Technologies plc ended its second week of trading down by 1 per cent, to €0.53, following a 9 per cent gain the previous week. The equity remained among the most active, yet trading volume declined to just under 500,000 shares, compared to 2.4 million shares during the equity’s first week of trading.
The company announced that the board is scheduled to meet next Thursday in order to consider and approve the company’s audited financial statements for the year 2018.
RS2 Software plc returned to positive territory, as it gained 1.43 per cent, as demand for the software company jumped from a mere 19,500 shares to 113,000 shares last week. The equity closed the week at €1.42 after touching a low of €1.33.
On Thursday, Loqus Holdings plc published its half-yearly report for the six-month period ended December 31, 2018.
During the period, the group reported a loss of €110,078, compared to a €90,300 profit in the corresponding period in 2017.
This negative performance, was a result of a 7 per cent decrease in revenue and a 4 per cent increase in costs. EBITDA totalled €310,666, translating to a 20 per cent decrease over the previous year. No trading was recorded in the equity during the week.
IHI shares maintained their positive momentum to close at €0.70 after touching a 38-week high of €0.72.
The share price of the hotels operator closed higher by 6 per cent and is up by 13 per cent since the beginning of the year.
A total of 28 trades worth €353,000 were executed.
During the month of February the equity gained 17 per cent. On Thursday, International Hotel Investments plc announced that it has submitted an application to the Listing Authority, requesting the admissibility to listing €20 million International Hotel Investments plc 4 per cent Unsecured Bonds 2026. These bonds are fully fungible with the company’s existing €40 million unsecured bonds.
The proceeds from the new bonds shall be utilised towards part-financing the re-development and refurbishment of the company’s hotel in Brussels, and towards the acquisition of a 10 per cent shareholding in a real estate project in Moscow.
The remaining balance will be used for general corporate funding purposes.
In the banking sector, HSBC shares gained 1.25 per cent to return to the €1.62 level. A total of 16 trades worth €195,000 were recorded.
BOV shares gained 0.8 per cent as the equity’s price moved between a weekly low of €1.24 and a high of €1.27, while it settled at €1.26. Activity in the banking equity declined to €138,000 over 26 transactions.
The board of directors is scheduled to meet on March 15 to consider and approve the group’s, and the bank’s audited financial statements for 2018. The bank’s Annual General Meeting shall be held on May 9.
Meanwhile, Mapfre Middlesea plc shares closed unchanged at €2 after trading at a weekly low of €1.98.
GO plc shares were the most active as €749,000 traded over 42 deals
MaltaPost plc also had a positive week, as the equity managed to recover the previous week’s loss. It moved higher by 6.6 per cent closing at €1.30. Trading volume increased to 24,000 shares.
MIA plc moved further in the green with a 0.8 per cent or €0.05 gain to close at €6.50. Fifteen transactions worth €375,000 were executed. The share price of the airport operator is up by 12 per cent since the beginning of the year.
In the property sector, MIDI plc shares lost 3 per cent as demand decreased to €33,700.
The equity closed the week at €0.63 after trading at €0.65 in the week’s opening session and on Thursday.
Malta Properties Company plc recouped part of the losses recorded in the previous week, as it gained 1.9 per cent to return to the €0.55 price level on improving volumes.
Over 190,000 shares were exchanged across eight transactions. The board of Malta Properties Company plc is set to meet on March 20 to consider and approve the company’s audited financial statements for 2018. The board shall also consider the declaration of a final dividend to be recommended to the company’s Annual General Meeting.
Plaza Centres plc shed 1 per cent from its share price to return to €1.02 while Main Street Complex plc traded flat at €0.63 over six transactions worth €74,000. PG plc lost 1.5 per cent or €0.02 to close the week at €1.36. Turnover in the supermarkets and retail operator declined to €107,000.
Simonds Farsons Cisk plc closed flat at €8.75 after touching a low of €8.50 while Trident Estates plc posted a 0.7 per cent gain closing at €1.36.
Nearly €100,000 was traded over four deals.
Malita Investments plc is back at the €0.90 price level after the equity shed 2.2 per cent over lack of investor demand. Despite this fall, the equity is still up 2.3 per cent since the beginning of the year. The company announced that its directors shall meet on March 8 to consider and approve the financial statements for 2018.
The directors will also consider the payment of a final dividend to the Annual General Meeting, which shall be held on May 6.
Three thin trades in Grand Harbour Marina plc left the equity’s price intact at €0.70. Meanwhile, Medserv plc gained 4.6 per cent to end the week at €1.15 as three deals worth €24,000 were recorded.
In the sovereign debt market, yields were generally lower across long-dated issues. The 2.4% MGS 2041 gained 44 basis points while the 10-year 5.1% MGS 2029 gained 62 basis points. A total of €7m was traded in this market across 126 transactions, down from €9.4m.
In the corporate debt market, the 5.75% International Hotel Investments plc 2025 lost 3.34 per cent while the 3.75% Tumas Investments plc Unsecured 2027 shed 1.7%. On the upside, the 4% MIDI plc Secured 2026 gained 2 per cent.
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 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: 21224410, or email info@jesmondmizzi.com.