The MSE Equity Total Return Index ended its nine-week positive streak, as it closed 0.51 per cent lower at €9,405.638. In spite of this minor pull back, March was a very positive month for local equities as the index recorded an impressive overall monthly gain of 4.272 per cent.
During last week, activity was spread across 22 equities, as gainers and fallers were perfectly balanced at seven-a-piece. Participation was lower than the previous four-day week, as a turnover of €1.4 million was generated, compared to the previous figure of €1.9 million.
The main drag on the index was the banking industry, as all four equities posted a loss in value. Bank of Valletta plc partially erased the previous week’s gain of six per cent, as it retracted 2.13 per cent to €1.38. The equity traded heavily as 190,194 shares were exchanged over 41 transactions. BOV gained 9.5 per cent in March following the announcement of their positive financial results for 2018.
Its peer, HSBC Bank Malta plc followed suit with a 1.84 per cent decline to close at €1.60, after having closed unchanged at €1.63 for two straight weeks. Trading volume amounted to 22,068 shares over 12 deals.
On Monday, FIMBank plc published its full-year financial results for 2018, showing that the group has continued on the positive trend set out in recent years. Profit before tax amounted to $13 million, translating to an increase of 11.2 per cent over the previous year.
This was driven by a 25.1 per cent improvement in net interest income to $31.2 million, a 27.7 per cent increase in dividend income to $7.7 million, and a positive result from foreign currency operations of €1.3 million, compared to a loss of $1.7 million in 2017. These positive results were partly the result of the rights issue which unlocked room for further growth and higher asset levels, as well as improved margins.
Net fee and commission income however, was a marginal 4.7 per cent lower as it totalled $17.6 million. The bank showed greater efficiency by the fact that operating expenses dropped by 11 per cent compared to 2017, to ($37.6).
The bank’s capital ratios also improved, as the group’s capital ratio improved from 15.5 per cent in 2017 to 18 per cent last year, while CET1 ratio was up from 11.3 per cent to 17.6 per cent.
The board will not be recommending a dividend, however, it will be recommending a 1 for 30 Bonus Issue of Ordinary Shares by way of capitalisation of the Share Premium Account. Shareholders on the register on April 7 will be entitled to this Bonus Issue.
The equity traded just once this week, as 2,000 shares was executed at $0.715, or 3.38 per cent lower than the previous closing price.
In the same sector, Lombard Bank Malta plc was the worst performer with a 5.6 per cent price drop. This was the result of a transaction of 5,500 shares executed at €2.36. The equity had last traded on March 7 and fell ex-dividend on March 11.
The price of BMIT Technologies plc maintained the €0.52 price level for the fourth successive week, despite a turnover of €55,263 over 18 deals.
Telecommunications company, GO plc traded 11 times throughout the week. All the transactions were executed at an unchanged price of €4.90.
International Hotel Investments plc was up 2.67 per cent to close the week at €0.77. The equity traded five times as 68,576 shares changed hands. The company announced that the new issue of €20 million 4% Unsecured Bonds 2026 has been fully allocated. Trading in the bonds commenced last Friday, when the issue gained 3.5 per cent on its par value to close at €103.50. The equity gained ten per cent in March.
Malta International Airport plc was the most liquid equity, generating a turnover of €312,960 over 15 trades. The equity kicked off the week with a modest gain of 0.76 per cent and managed to sustain the €6.60 closing price for the rest of the week.
Elsewhere, a single transaction of 5,000 MaltaPost plc shares dragged the price down by 0.79 per cent, to €1.25.
In the insurance sector, Mapfre Middlesea plc advanced 0.85 per cent to €2.36. Trading volume amounted to 41,750 shares, spread across 11 trades. The equity gained 18 per cent in March.
RS2 Software plc managed to partially recover the previous week’s loss as it rebounded 0.71 per cent to close at €1.41. In total, four deals of 8,600 shares were concluded.
In the food and beverage sector, a sole deal of 1,150 Simonds Farsons Cisk plc shares was executed at an unchanged price of €8.75.
Grand Harbour Marina plc (GHM) published its financial results for 2018 showing an increase in the group’s revenue of 14.5 per cent over the previous year, to €4.7 million. Despite increased costs being incurred, this translated to a proportional increase in operating profit of 14.1 per cent, to reach €1.4 million.
As a result, profit before tax during 2018 increased by a substantial 83.6 per cent to €749,000, translating to an Earnings per Share figure of €0.02, compared to the previous year’s €0.002. The board of directors did not declare a dividend.
Following the announcement, the equity traded seven times mid-week, as 24,200 shares changed hands. As a result, GHM registered the largest price increase of the week as it soared 8.03 per cent to €0.74.
Retail conglomerate, PG plc reached the highest closing price in five months, as it closed at €1.40. This was the outcome of four trades of 31,719 shares.
Medserv plc announced that its board is scheduled to meet on April 24, 2019 to consider and approve the financial statements for 2018. The Annual General Meeting will be held on May 27, 2019. In terms of trading, the share price was down 1.79 per cent, as three transactions of 95,650 shares were all executed at €1.10.
The property sector registered mixed performance last week, as five equities recorded no change in their price, while the remaining two moved in opposite directions.
Plaza Centres plc fully bounced back from the previous weekly loss, as it appreciated 0.98 per cent to recapture the €1.03 price level.
Conversely, MIDI plc drifted 1.56 per cent lower to €0.63. This was the result of five transactions of a combined 43,600 shares.
Malita Investments plc registered contrasting performances, which ultimately cancelled out each other as the share price closed unchanged at €0.87. In total, €24,282 worth of shares traded over four deals.
Trident Estates plc generated a turnover of €13,345 over four transactions, however no change was registered in the closing price of €1.33.
Similarly, two deals of 55,000 Tigne’ Mall plc shares had no bearing on the share price of €0.92
Malta Properties Company plc and Main Street Complex plc also closed unchanged at €0.58 and €0.63 respectively on relatively slim volumes.
Yields in the sovereign debt market drifted further last week, as the MSE MGS Total Return Index was up 0.25 per cent to 1,046.36 points. From the 23 active issues, 16 issues posted gains in price while another six traded lower, mainly in the shorter term issues. The 2.2% MGS 2035 (I) topped the list of gainers with a 0.98 per cent gain, closing at €109.41.
In the corporate debt market, from 37 active securities, 14 posted gains while eight lost ground. Total turnover amounted to €1.7 million over 107 transactions. The top gainer was the 5.5% Mediterranean Investments Holding plc Unsecured € 2020, which climbed for per cent to €104. At the other end of the spectrum, the 6% Pendergardens Developments plc Secured € 2022 Series II plunged 4.52 per cent to close at €105.50.