HSBC and BOV post solid gains to push MSE index up

MSE Daily Trading Report, February 20, 2017

The MSE Equity Total Return Index returned to positive territory as it put on a solid 0.79%, finishing the session at 8,653.764points. Eight equties were active,of which four traded higher and two moved lower. Total turnover in the equity market amounted to €482,676 spread over 53 trades.

The banking sector was the main catalyst for the strong session as two large equities managed to put together some solid gains. Bank of Valletta plc was the most liquid equity as 145,822 shares were exchanged over 18 deals. As a result, the share price managed to break the €1.82 barrier to end the session at €1.83, translating to an upward movement of 1.1%

This morning HSBC Bank Malta plc announced profit before tax of €49.8 million for 2017, which translates to a decline of 19.9% over 2016 when the bank’s financial results included a one-off gain on disposal of the bank’s membership interest in Visa Europe, amounting to €10.8 million. Adjusted profit before tax, which excludes the effect of such notable items, was €55.6 million, still 9.5% down from 2016. Net dividend for the year is 54% higher than the prior year at €40.2 million, €20 million of which is a special dividend to be distributed from surplus retained earnings. A final net dividend of €0.081 per share will be paid on April 19, 2018 to all shareholders as at March 13, 2018. Investor sentiment seems to have been affected positively by this announcement, as the equity posted the strongest gains of the day, climbing 3.85% to close at €1.89.

Malta International Airport plcreversed the losses registered in the previous session as its share price advanced by 0.81% to €4.98. Trading volumes total 3,375 shares across three transactions.

RS2 Software plcwas the worst performer as it was down by 2.29%, closing at €1.28. A couple of deals generated a turnover of €7,400.

In the property sector,Malita Investments plc closed at €0.82, meaning a decrease in value of 1.2%. The equity was traded three times as 3,000 shares changed hands.

In the same sector, Trident plc was also active as 51,601 shares were traded, however its share price closed unchanged.

A sole trade on slim volume in MaltaPost plc shares, pushed the share price up by 0.51%, closing the session at €1.96.

Another single transaction of just 27 shares had no effect on the share price of Simonds Farsons Cisk plc.

In the corporate debt market, out of 20 active issues, five headed north while three closed lower. The 3.75% Premier Capital plc Unsecured € 2026 was the strongest performer, as it closed 1.29% higher, at €105. On the other side of the spectrum, the 5% GlobalCapital plc Unsecured € 2021 registered a fall of 0.38%.

The sovereign debt market, particularly the longer-dated issues, experienced a weak session as out of six active issues, four lost ground while only one advanced. The 2.4% MGS 2041 topped the list of fallers as it depreciated by 0.8%. The only exception was the 4.8% MGS 2028 as it advanced by a minimal 0.07%.


The Equities traded today were:

Symbol Code

Volume Traded

Value Traded

Trades

Closing Price

% Change

BOV

145,822

266,448.83

18

1.830

1.10%

HSB

48,553

89,814.54

17

1.890

3.85%

SFC

27

194.40

1

7.200

0.00%

MIA

3,375

16,708.50

3

4.980

0.81%

MTP

500

980.00

1

1.960

0.51%

RS2

5,723

7,399.90

2

1.280

-2.29%

MLT

3,000

2,460.00

3

0.820

-1.20%

TRI

51,601

98,669.83

8

1.910

0.00%



The Corporate Bonds traded today were:

 

Closing Price

% Change

5% GlobalCapital plc Unsecured € 2021

98.610

-0.38%

4.25% GAP Group plc Secured € 2023

103.000

-0.01%

6% AX Investments Plc € 2024

111.000

0.00%

4.4% Von der Heyden Group Finance plc Unsecured € 2024

99.500

0.45%

5.75% International Hotel Investments plc Unsecured € 2025

108.750

0.69%

5.1% 6PM Holdings plc Unsecured € 2025

99.500

0.52%

4.5% Hili Properties plc Unsecured € 2025

105.000

0.00%

5.25% Central Business Centres plc Unsecured € 2025 S2T1

105.010

0.00%

4.25% Corinthia Finance plc Unsecured € 2026

104.000

0.00%

4% MIDI plc Secured € 2026

103.770

-0.03%

4% International Hotel Investments plc Secured € 2026

104.000

0.00%

5% Dizz Finance plc Unsecured € 2026

109.000

0.00%

4.8% Mediterranean Maritime Hub Finance plc Unsecured € 2026

104.500

0.00%

3.75% Premier Capital plc Unsecured € 2026

105.000

1.29%

4.35% SD Finance plc Unsecured € 2027

104.000

0.00%

4% Eden Finance plc Unsecured € 2027

104.800

0.34%

4.4% Central Business Centres plc Unsecured € 2027 S1/17 T1

103.050

0.00%

4% Stivala Group Finance plc Secured € 2027

104.000

0.00%

3.75% Virtu Finance plc Unsecured € 2027

103.000

0.00%

3.5% Bank of Valletta plc € Notes 2030 S1 T1

100.000

0.00%



The Government Stocks traded today were:

 

Closing Price

% Change

4.6% MGS 2020 (II)

109.560

-0.15%

4.8% MGS 2028 (I)

132.220

0.07%

4.65% MGS 2032 (I)

135.240

0.00%

2.2% MGS 2035 (I)

102.910

-0.61%

3% MGS 2040 (I)

115.140

-0.16%

2.4% MGS 2041 (I)

104.160

-0.80%



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. Jesmond Mizzi Financial Advisors Limited is licensed to conduct investment services by the MFSA and is a Member Firm of the Malta Stock Exchange. 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.

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