MSE Index halts a six-week losing streak

MSE Trading Report for week ending December 01, 2017

The MSE Equity Total Return Index recouped some of last week’s lost ground as the index closed 0.135% higher at 8,504.792 points. A total of 17 issues were active during the week of which eight gained ground, while five closed in the red. The index made a strong late run, as heavyweights HSBC Bank Malta plc, Bank of Valletta plc, andGO plc ticked higher yesterday, resulting in the index closing in positive territory. Total turnover during the week amounted to €2.02million up from the €1.65 million registered last week.

In the banking industry, Bank of Valletta plc held the lion’s share of the total turnover as €845,138 were generated among 105 transactions – accounting to 41.8% of total turnover. The equity closed the week at the €1.799 price level after reaching highs of €1.83 and lows of €1.75.

Yesterday, the bank announced that it has been informed that the nil-paid rights issued to UniCredit S.p.A. as part of the €150,000,000 rights issue have been duly assigned. The Bank issued this announcement for the purpose of keeping the market informed, following the statement in the prospectus that UniCredit S.p.A. had communicated its intention to the Bank that it would not be exercising its rights to subscribe for its proportionate entitlement to ordinary shares, and that it reserved the possibility to assign its rights.

Meanwhile its peer, FIMBank plc cancelled almost half of last week’s increase as two trades on Monday amounting to 17,209 shares saw the price of the equity decline by 2.4% to close at $ 0.615.

After experiencing two negative sessions on Monday and Thursday, HSBC Bank Malta plc shares managed to fully recoup its decrease on Friday to close the week flat at €1.86. A total turnover of €235,201 was generated among 25 transactions.

In the telecommunications sector, GO plc had a rocky start to the week start but managed to recover from its decline during Tuesday’s and yesterday’s sessions to close the week 1% higher at €3.55.

Malta International Airport plc shares managed to add 1.1% to its share price as the equity closed at the €4.65 price level. A total of 37,153 shares were exchanged across 19 deals.

Maltapost plc shares reached its all-time high at €2.12 on Tuesday, as three trades generated a turnover of €10,421.

On the other hand, Malta Properties Company plc traded at its all-time low levels since its spin-off two years ago. The equity closed the week at the €0.468 as turnover of €44,453 was generated between eight deals.

In the same sector, MIDI plc, Tigne Mall plc, and Plaza Centres plc shares closed higher. MIDI shares added 1.5% to its share price to close at €0.345 – closing at a nine month high. Meanwhile, Tigne and Plaza shares followed suit to close 1% and 0.9% higher at €0.97 and €1.02 respectively.

Its peer Malita Investments plc shares closed flat despite being active during the week as 30,000 shares were exchanged over three transactions to close at €0.751.

On Monday, PG plc announced that on December 4, 2017 the Board will consider, and if thought fit, distribute an interim dividend, with the cut-off date to those eligible for dividend as on December 1, 2017. The interim dividend will be paid on December 11, 2017.

The board will also be convening on December 20, 2017 to approve the Interim Unaudited Financial Statements for the six-month financial period from May 1, 2017 to October 31, 2017.

The equity was active during Tuesday’s and Wednesday’s sessions as a total of three deals saw 7,870 shares exchange hands, closing flat at €1.45.

In the oil and gas sector, Medserv plc shares drifted lower as the equity contracted by 7% during the week to close at €1.121 – hitting a 31-month low. A total turnover of €76,414 was generated between 15 trades.

On Monday, RS2 Software plc published their interim director’s statement. In 2017 the Group continued the implementation of its strategy in terms of geographical expansion and the development of the managed services business. Both offices in Asia and the US are fully operational and working to support the core team in Malta in terms of development and project delivery. The strategy of the Group is to develop these offices to be extended arms to the European operation and will have four main tasks to perform, namely core development, Local and custom development, managed service operation, and sales and marketing.

Over the past year, the Group has continued to build its strong network to implement its global acquiring strategy partnering with Fintech companies and local banks in various jurisdictions throughout Europe, Middle East, Asia Pacific and North America in order to provide banks, PSPs and Multinational merchants using BankWORKS as one single platform to process their businesses around the globe. With this said, the Group managed to form an alliance with a large corporation that provides 42% of the global travel market to offer their client processing services and consolidation of their business.

The Group is diligently working on securing multi-million Euro processing deals for its managed services company in different regions. These deals could be closed by end of Q1 and Q2 2018.

Overall the Group’s revenue for 2017 remains stable and comparable to 2016. Despite the Group’s continued global expansion in the current year, it expects to maintain, and possibly marginally improve its profitability, over the prior year. The Board sustains its confidence in the Group’s strategic business model and development, its underlying technology and product BankWORKS, the resulting revenue pipeline and the global expansionary and growth targets. Sales pipeline across the different regions and across the two business lines is very healthy and conducive to successfully implementing the group’s expansion strategy.

The equity spiked by 10% following the announcement, but erased its gain between Wednesday and Friday, closing 0.2% lower at €1.52.

Insurance firms, Mapfre Middlesea plc and Global Capital plc shares headed in opposite directions. Mapfre Middlesea shares gained marginally on slim turnover over a single deal closing at €1.781. Meanwhile, Global Capital shares plunged on Monday as the equity lost 8.2% of its value to close at €0.312.

Elsewhere, four trades amounting to 25,250 shares in Simonds Farsons Cisk plc saw the equity close flat at €8.76.

In thecorporate debt market a total of 40 issues were active during the week of which 17 gained, while 15 headed south. The 5.35% Bank of Valletta plc € Sub 2019 ended a two-week losing streak as the bond closed 0.5% higher at €101.75.

In theprospects market, two issues were active, both of which closed higher. The 5.5% Anchovy Studios plc Unsecured 2027 recorded its first trade as the bond closed one per cent higher at €101 over a single trade of 5,000 nominal. Meanwhile, 4.75% Orion Finance plc Unsecured 2027 closed marginally higher at €101.01 over a single trade of 8,000 nominal.

In contrast to last week, the sovereign debt market closed lower, as out of a total of 26 issues, the absolute majority amounting to 14 declined, while nine advanced. The 3% MGS 2040 (I) R continued with last week’s positive performance as the bond gained 0.44% to close at €117.82.








This article which was 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

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