Banking stocks drag index lower
MSE Trading Report for week ending May 02, 2014
The Malta Stock Exchange (MSE) Index extended last week’s loss by a further 1.21 per cent to 3,451.611 points – over a higher, but more concentrated, turnover. On Wednesday, the index ended the month of April up 0.79 per cent on the previous month, and just a few points shy from its one-month low of 3,443.023 points reached on Tuesday. Contributing to the index’s negative performance over the week, were shares in the banking sector. Primarily, trading in Bank of Valletta plc (BOV) shares accounted for most of the loss, as it headed the list of fallers following the issuance of its interim six-month results last week. On the other hand, MaltaPost plc rebounded from its eight-month low, whereas RS2 Software plc (RS2) traded just below its all-time high.
Activity was spread over nine issues, of which gainers, losers and non-movers tallied at three. Turnover more than doubled to €911.9k, as investors’ attention shifted primarily to BOV shares.
In fact, BOV shares witnessed two bouts of selling pressure on Monday and Tuesday, dragging the banking equity’s price down to its one-month low of €2.181. This followed the bank’s announcement after trading hours on Friday that a 21 per cent decline in pre-tax profit was reported to €50.7m. Over the month of April, BOV closed marginally up by 0.05 per cent. However this week, the equity fell 4.4 per cent, to the €2.2 price level. Trading in BOV accounted for 74 per cent of total turnover, as 97 deals of 306,162 shares were negotiated.
Shares of Lombard Bank plc witnessed a three per cent decline in price to €1.63 – a price not seen since November 2012 – albeit such a decline was noted on thin volume, in which four trades of just 1,100 shares were struck.
The other faller for the week was HSBC Bank Malta plc, whose shares eroded all of last week’s 0.4 per cent gain, as 32 trades of 70,954 shares led to a 0.4 per cent decline to its five-year low of €2.141. Over the month of April, HSBC’s share price balanced off any gains and losses witnessed throughout the month.
On a more positive note, MaltaPost plcshares rebounded from their eight-month low of €1.02, closing two per cent higher over a single deal of 2,000 shares. The postal services firm’s share price plunged by 9.6 per cent during the month of April.
In the IT sector, RS2 was the only equity to register any movement, whereby an initial loss on Tuesday, was more than reversed by the end of the week. The IT stockedged 0.4 per cent higher to close just €0.01 shy of its all-time high closing price of €2.43. Total trading was noted over 10 transactions of 20,625 shares. During the week, the company announced that it has concluded and signed an agreement with the Government of Malta with regards to the company’s new investment in Gozo – which entails an initial investment of €1m, and shall serve as an extension to the company’s works and services currently provided from its Mosta office.
Its peer, 6PM Holdings plc was active on four trades of 6,116 shares, which left no impact on the equity’s price, as it closed unchanged at its all-time high of €0.755.
Trading in Malta International Airport plc shares led to a minimal 0.04 per cent appreciation in price, as it failed to sustain intra-week highs of €2.26. Trading activity took place over 13 deals of 7,350 shares, in which the stock price closed at the €2.241 price level.
Island Hotels Group Holdings plctraded flat at €0.85, on two transactions of 5,000 shares. On Tuesday, the company announced that it has submitted an application to the Listing Authority requesting the admissibility to listing of 350,000 Bonds 2024 of a nominal value of €100 per Bond issued at par for an aggregate of €35m. The proceeds will mainly be used by the company for the refurbishment and construction works at the Radisson Blu Resort in St. Julians; the development and operation of the COSTA Coffee brand – both locally and in Spain; and for other general corporate funding purposes.
The other non-mover for the week was Malita Investments plc at €0.54, whereby one trade of 10,000 shares was struck.
On Wednesday, Simonds Farsons Cisk plc (SFC) approved its financial year-end statements for the year-ended January 31, 2014. The Group registered a profit before tax of €6.85m, compared to €6.48m registered in 2013. Revenue for the period under review amounted to €78.6m, a rise of 1.9 per cent from 2013. EPS increased to €0.211. Furthermore, the board of directors also resolved to recommend for the approval of a final net dividend of €0.05 per share to the company’s annual general meeting – payable to shareholders on the company’s share register on May 19. Despite these positive results attained, no trading has taken place throughout the week. On a year-to-date basis, the stock has gained 5.3 per cent, and has maintained its all-time high closing price of €3.
On Tuesday MIDI plc announced that on April 28, 2014, the company's board of directors have resolved to approve the audited consolidated financial statements for the financial year ended December 31, 2013. The Group registered a loss before tax of €1.57m, compared to a loss of €3.57m registered in 2012. Revenue for the period under review amounted to €7.8m , a decline of 15.7 % from 2012. Loss per share from continuing operations stood at €0.007. The significant decline in revenue is primarily explained through the limited number of apartments available for sale during the year. Not trading in the company’s shares has taken place during the week
On the corporate bond front, turnover rose by 75 per cent to €392k, in which 17 issues were active – seven gained in value, three retreated, while 10 closed unchanged. The 7.5% Mediterranean Investments Holding Plc € 2015 headed the list of gainers, with a 1.5 per cent advancement to €102, whereas the 6% AX Investments Plc € 2024 was once again the most traded issue, with a turnover of €117k. Meanwhile, in the sovereign debt market, turnover shrunk from €27m the prior week, to €12.8m over 25 traded issues – out of which 18 inched higher, six slipped, while one closed unchanged. The 4.65% MGS 2032 (I) was the only long-dated issue to retreat – to €105.42; while the 3.75% MGS 2015 (VI) was the most liquid issue, over a turnover worth €4.2m.