RS2 Software rally by 8.7 per cent

Following last week’s minimal gain the Malta Stock Exchange (MSE) Index managed to capture a further 0.13 per cent appreciation to close the week at 3,327.036 points. Due to Monday’s Bank holiday the index was active in four sessions with HSBC Bank Malta plc emerging as the sole gainer among the active financial stocks, while RS2 Software plc promoted itself as the main headliner for the week with a staggering gain, to reach a new all time high. Conversely, GO plc shares edged lower following three consecutive weeks of gains.

Total turnover for the week amounted to Eur 998,278 traded over 12 stocks, of which gainers and losers equalled to three, while non-movers totalled to six. Meanwhile, executed transactions for the week totalled to 136 which consisted of 672,430 shares.

Meanwhile, in line with the previous week, yields within domestic sovereign debt drifted lower. Clear, the touchy situation in Cyprus loomed negatively over investors’ sentiment despite the country being considered as the third smallest economy within the euro zone area. Other than that, investors were also conditioned by the lack of governance in Italy, in addition to less than expected negative figures from the 27 European member state area. Total turnover for the week reached Eur10.3m with long-dated issues returning notable gains.

From the equity segment, HSBC Bank Malta plc advanced by a minimal 0.2 per cent over a single session, in which relatively low volumes of 8,779 changed hands over six trades. The equity closed the week at the Eur2.74 level having traded at a low of Eur2.70.

Meanwhile, Bank of Valletta plc closed the week flat at Eur2.25 after trading at an intra-week high of Eur2.30. Total trading volume reached 198,344 shares which were dealt across 49 trades.

The other active financial stocks were Lombard Bank plc and Middlesea Insurance plc which both closed flat at Eur2.00 and Eur0.86 respectively. In the former’s case volume traded amounted to 18,103 shares, while the insurance operator was active over a mere of 294 shares.

From the I.T. sector, RS2 Software plc shares glittered with a remarkable gain of 8.7 per cent to close the week at the Eur1.00 price level, the highest position since its listing in 2008. The equity displayed impetus through the week as it captured a 5.4 per cent on Tuesday, while registering further gains of over 3.1 per cent in the following sessions. Activity was on high volumes of 144,699 shares. This week, RS2 Smart Processing, the managed services subsidiary of RS2 Software plc, concluded a major, three-year contract with one of the largest payment processors in Europe.RS2 Smart Processing will be supporting this company for its operations in Europe, North America, Latin America and Asia Pacific. The company had already referred to a deal in its Directors Interim Statement but the agreement was signed in March. Separately, RS2 announces that it also successfully concluded another licence agreement of USD1,800,000 with a North American client in the fourth quarter of last year. This was also referred to in the Directors Statement in November 2012.

Meanwhile, from the same industry, 6pm Holdings plc closed the week unchanged at £0.45. The equity touched lows of £0.44 over a single session in which 10,600 shares changed ownership.

On similar lines, the other gainer for the week was Malta International Airport plc which topped its value by a further 2.2 per cent over two sessions to close the week at Eur1.90. The airport operator was active in three sessions in which nine trades worth Eur20,309.20 were executed. Meanwhile, on Friday afternoon the company released its traffic results for both the month of March and for the first quarter period. In the former’s case, passenger movements increased by 12.3 per cent when compared to the same month last year, while for the first three months of 2013 an increase of 8.6 per cent was recorded.

On the other hand, GO plc shares stripped-off last week’s appreciation as it marked a loss of 1.8 per cent. However, one must consider the fact that despite the equity turned ex-dividend on Wednesday, the telecommunications equity traded fairly lower as it gathered just below two per cent in the last two sessions of the week. Total number of shares amount to 172,000 shares which were dealt over 32 deals, thus moving towards the Eur1.57 price level. Meanwhile, on Friday morning the company announced that its Annual General Meeting will be held on May 7, 2013, in which the consideration of its financial statements for 2012 and the payment of a net dividend of Eur0.10 are on the main agenda among other resolutions.

Meanwhile, the other losers for the week were Midi plc and Island Hotel Group Holdings plc which declined by 0.3 per cent and 2.8 per cent respectively. The former slipped over 15,800 shares to close at Eur0.314, while the latter incurred a loss of just below three per cent to close the week at Eur0.63.

Finally, the other non-movers for the week were Plaza Centres plc which closed flat at Eur0.55 and International Hotels Investments plc which was active over a total value of Eur4,391 to close at Eur0.775. Meanwhile, on Thursday the hotels operator disclosed its financial statements for the year ending December 31, 2012, were the Group registered a loss after tax of Eur10.4m when compared to the loss of Eur10.7m registered in 2011. However, the Group registered an increase in consolidated revenue of 14% compared to 2011, with 6.5% of this increase being delivered from the Marina Hotel Malta which was acquired in early 2012. The Group incurred an increase in its net impairment losses on hotel properties of just over Eur5.3m, thus amounting to Eur7.8million. The company stated that although the global economic situation in 2013 remains challenging, there are signs of recovery which should positively impact the Group performance in 2013.