Monthly Round up Report for January 2013 – A good start for most local equities

The Malta Stock Exchange (MSE) Index ended the opening month of the year with a further 0.87 gain following a 0.45 per cent gain in December 2012, to close at 3,239.759 points. The local market shadowed the advances made by overseas markets as all major equity markets registered gains during the month of January. In fact, the DAX in Frankfurt rose by 2.2 per cent, the NIKKEI 225 in Japan soared by 7.2 per cent, the CAC 40 in Paris appreciated by 2.5 per cent, while the FTSE 100 in London put on 6.4 per cent.

In January, turnover in the equity market escalated to over €4.5m, traded across 18 equities in which 12 advanced, four declined and two remained unchanged. The best performer for the month was FIMBank plc, while International Hotels Investments plc (IHI) headed the list of losers. Meanwhile Plaza Centres plc was the most active by volume as a total of 953,070 shares were traded.

From the banking sector, all equities registered an increase in their share price. FIMBank plc was the main headliner, as its share price rallied by an impressive 27.5 per cent across 29 deals of 367,874 shares. The equity managed to reach a monthly high of $1.05 in mid-January, while it closed the month at $1.02.

On the other hand, Bank of Valletta plc (BOV) witnessed the highest trading turnover with regards to the banking industry as 641,158 shares were negotiated across 303 deals. On the January 15, the Bank’s share price adjusted to reflect the bonus share issue of one share for every nine already held. As a result, the Bank’s issued and paid up capital increased to €30m divided into 300m ordinary shares with a nominal value of €1.00. Consequently, as at the end of January, the total number of voting rights has increased to 300m votes. BOV managed to end the month higher at €2.265, resulting in a 4.2 per cent gain when compared to December 2012.

On a similar note, HSBC Bank Malta plc (HSBC) registered a 0.7 per cent increase in its share price as 210,347 shares exchanged hands across 104 transactions, to close higher at €2.72. Likewise, Lombard Bank plc rose by almost 2.2 per cent as 32 trades of 63,699 shares were executed, closing at the €1.90 price level. The Bank’s audited accounts for the financial year ended December 31, 2012, are set to be approved on the March, 14 2013 at the company’s board meeting. At this meeting, the declaration of a final dividend will also be recommended.

From the telecommunications industry, GO plc extended last year’s gain as it pushed ahead by a further 12.2 per cent over 73 deals of 156,280 shares, closing at €1.335 just shy of its monthly high of €1.34. At the end of the month the company forwarded the company announcement of Forthnet S.A. in which GOand Emirates International Telecommunications Malta Ltd have a strategic shareholding through their joint venture company Forgendo Limited, which informed its investors that discussions on potential consolidation of business activities have been inconclusive and therefore have been terminated.

Likewise, the postal service company MaltaPost plc extended December’s gains as it climbed by a significant 20 per cent throughout January, to close at its monthly high of €1.02 as 41 trades of 246,859 shares took place. The company announced that at the Annual General Meeting held on January, 10 2013, all the resolutions on the agenda were approved. Namely, the audited financial statements for the year ended September 30, 2012 and the declaration of a final ordinary net dividend of €0.04 per nominal €0.25 share, representing a final net payment of €1,307,544, either in cash or by the issue of new shares at the option of each individual shareholder.

From the IT sector, both Crimsonwing plc and RS2 Software plc advance sharply by 12.2 per cent and 16.2 per cent respectively. The former witnessed the trading of 739,498 shares across 46 deals to close at €0.55, while the latter was active over 36 trades of 193,403, closing at its monthly high of €0.86. Meanwhile, 6PM Holdings plc despite having reached a monthly low of £0.30, managed to close the month unchanged at £0.31.

On a similar note,Plaza Centres plc closed the month flat at €0.60 after trading at a monthly low of €0.54. Meanwhile, Middlesea Insurance plc strengthened by 6.8 per cent, to close at €0.79. The company announced the appointment of a new Chief Officer who will be responsible for the distribution channels of the company. Similarly, Simonds Farsons Cisk plc also ended the month in positive territory as it closed at its monthly high of €2.58, therefore edging 3.2 per cent higher over last year’s closing price.

The other gainers for the month were MIDI plc and Malita Investments plc as they both strengthened by 1.8 per cent and 5 per cent respectively. The latter announced that the Board of Directors have approved the Interim Financial Statements for the nine-month period ended September 30, 2012. The company registered a profit before tax off €1.6m compared to a €637 loss registered in 2011. Revenue for the period under review amounted to just over €1m.

Conversely, IHI was knocked sharply lower as it plunged by a further 14 per cent as 279,036 shares were dealt across 26 transactions, to close a its monthly low of €0.74, despite having touched the €0.80 price level. From the same industry, Island Hotels Group plc fell by a hefty 13.4 per cent, closing at €0.684. The company’s board meeting is scheduled to be held on the February 22, 2013, to approve the company’s audited financial statements as at October 31, 2012.

Similarly,Malta International Airport plc started the year on a negative note as it shed 1.1 per cent off its share price, to close at €1.78. The company forecasts a 1.5 per cent improvement with regards to passenger numbers for 2013 when compared to the 3.65m passengers achieved in 2012. The board of directors of the company is also scheduled to meet on the March 20, to consider and approve the company’s financial statements for the financial year ended December 31, 2012. Likewise, Santumas plc lurched 0.6 per cent downwards across the lowest trading volume for the month of 1,599 shares.

In the fixed-income market, total turnover amounted to over €88.4m. The Malta Government Bonds were the most liquid as 658 trades worth almost €86m were executed. The 7.8% MGS 2018 was the most active issue for the month as total trading value amounted to over €35.5m. Meanwhile, in the Corporate Bonds Market €2.5m were negotiated across 237 deals.