The MSE Equity Total Return Index continued to build on the previous week’s recovery, as it posted a minimal gain of 0.053 per cent to close at 8,930.851 points. An unimpressive turnover of €0.8 million was generated, down from the previous week’s €2.5 million. Investor participation was spread across 19 equities, of which gainers and fallers tallied at five.
Performances in the banking industry were mixed, as two appreciated in value while Bank of Valletta plc drifted marginally lower. The latter closed at a price of €1.33, translating to a 0.75 per cent loss in value. A total of 79,229 shares changed hands across 32 transactions.
Its peer HSBC Bank Malta plc moved in the opposite direction having appreciated by 1.12 per cent, to reach €1.80. Trading volume totalled 29,792 shares over five deals.
FIMBank plc was the top performer in the sector with a 1.27 per cent increase in value, to close at $0.80. The equity traded three times, as 20,000 shares were exchanged.
Meanwhile, Lombard Bank Malta plc recorded a single transaction on slim volume, at an unchanged price of €2.40.
In the telecommunications sector, GO plc (GO) was down by 1 per cent to settle at €3.96. This was the outcome of six deals of a combined 6,567 shares.
On Wednesday, GO provided a presentation with details regarding the IPO of BMIT Technologies plc (BMIT), further to a stockbrokers’ meeting held earlier this month. BMIT, which is being valued at €100 million, is the largest data centre operator in Malta, having always functioned separately from GO, in terms of operations.
BMIT plans to develop a new data centre in Żejtun, which would increase the company’s capacity by nearly 30 per cent.
EBITDA is expected to increase from €7 million back in 2015, to €11.4 million in 2020, while the projected net dividend yields are 4.4 per cent in 2019, and increasing to 4.9 per cent in 2020.
The rationale behind the IPO is to deliver shareholder returns and to raise the profile of the BMIT group, while giving it access to the capital markets. This move will also enhance both companies’ management focus and improve their governance. The process of the IPO is expected to be concluded by February 2019.
International Hotel Investments plc, closed unchanged at €0.60 despite a sizeable turnover of €77,430, having had a volatile week.
Similarly, MaltaPost plc traded flat at €1.62, across two deals of a combined 3,767 shares.
On Monday, Malta International Airport plc issued an Interim Directors’ Statement providing an update on the company’s performance since the last update provided in July.
The company announced that, during this period, no material events or transactions had taken place that would have an impact on the solid financial position of the company.
The turnover for the first nine months of 2018 was €70.8 million, translating to a 12.2 per cent increase over the corresponding period last year. Expenditure also increased, at a slower pace, as it was 10.9 per cent higher, ultimately resulting in a 16.5 per cent growth in profit for the nine-month period, to €24.9m.
The company remains positive with regards to its traffic projections, and thus it expects that the last quarter to follow the positive trend registered so far, and is expecting to be in line with the financial targets set out earlier this year.
During the week, four transactions of 2,800 shares were concluded, pushing the share price 0.8 per cent to an all-time high of €6.30.
In the retail sector, a marginal gain recorded by PG plc on Tuesday proved unsustainable, as the price retracted to the €1.36 price level. The equity traded heavily as 106,945 shares changed hands across eight deals.
Medserv plc gave up a portion of the previous week’s gain, declining by 1.89 per cent to €1.04. In total, 15,000 shares traded across three trades.
A single transaction of 10,000 Santumas Shareholding plc shares pushed the price 0.71 per cent higher, to reach €1.42.
Most equities in the property sector closed unchanged this week
On the other hand, another sole deal on slim volume in Grand Harbour Marina plc shares, shaved 2.67 per cent off the share price, down to €0.73.
RS2 Software plc extended its positive run to three straight weeks, with a 0.85 per cent rise in price, reaching €1.18. Trading volume amounted to 9,850 shares over four transactions.
In the food and beverage industry, one transaction worth €7,590 in Simonds Farsons Cisk plc shares, had no impact on the price of €8.10.
Likewise, Loqus Holdings plc closed unchanged at €0.085 after trading just once on slim volume.
Most equities in the property sector closed unchanged this week, including Malta Properties Company plc which kicked off the week negatively but eventually recovered, to close unchanged at €0.56. The equity traded rather heavily as 136,180 shares were negotiated over six deals.
The only exception in the sector was MIDI plc as it registered the worst performance of the week with a 2.86% drop in price, down to €0.68. The equity was also the most liquid, as 14 deals of 290,000 shares were struck.
Meanwhile, Trident Estates plc temporarily reached an intra-day price of €1.55, before retracting to the previous week’s closing price of €1.50.
During the week, six trades were executed, in which 26,203 shares were transferred.
A couple of transactions of a combined 15,893 Malita Investments plc shares had no effect on the closing price of €0.90.
In the corporate bond market, 40 issues were active, of which 12 advanced while 11 headed south. Turnover amounted to €1.8 million over 178 deals.
The 5% Hal Mann Vella Group plc Secured Bonds € 2024 registered the best performance, having increased by 2.06 per cent, to close at €106.40.
At the other end of the spectrum, the 5% GlobalCapital plc Unsecured € 2021 headed the list of fallers, as it was down by 2.44 per cent to close at €98.50.
On Monday, D Shopping Malls Finance plc announced that the offer of €7,500,000, 5.35 per cent Unsecured Bonds 2028 has been fully subscribed. The bonds were admitted to trading on Prospects MTF, and trading on the Malta Stock Exchange commenced on Tuesday. D Shopping Malls, is part of Dizz Group which is now the first group to issue a bond on the main market and a bond on the Prospects MTF market.
The proceeds shall be utilised primarily to develop two shopping and commercial centres – D Mall located in Tigne Point, and Center Parc located in Qormi.
Through the proceeds, the company will also acquire property located in Laguna Complex, Portomaso as well as an apartment in Qui-si-Sana, Sliema.
Yields in the sovereign debt market were up, as turnover totalled €5.7 million and was spread across 23 issues, of which 20 declined and only two advanced.
Half of the turnover was generated by the 2.1% MGS 2039(I), which was the only issue to close unchanged at €102. Meanwhile, the 2.5% MGS 2036 (I) was the worst performer, having declined by 0.78 per cent, to close at €106.
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 a member of 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, or on Tel: 21224410, or email info@jesmondmizzi.com.