Index flat on lower turnover
MSE Trading Report for week ending May 16, 2014
The Malta Stock Exchange (MSE) Index fell by a minimal 0.03 per cent, to close at 3,421.742 points. Activity was spread across 13 equities of which six declined, four appreciated and three closed unchanged as trading value for the week fell by 50 per cent to € 635,107.
The equities within the banking sector witnessed mixed performance as Lombard Bank plc shares stumbled by 4.5 per cent across 13 deals of 20,380 shares, to close at €1.49, while FIMBank plc (FIMBank) shares locked in a two per cent gain as a sole transaction of 4,065 shares was struck, closing at $0.78. In their Interim Directors’ Statement, FIMBank announced that it is in the process of opening a branch in Athens, Greece – focusing on factoring services to corporate clients. Dubai is also being looked at as a test ground for initiating the offering of leasing services later in 2014. Discussions on the potential acquisition of 40% in PRVI Faktor – a Slovenian factoring and finance company – have also continued. Furthermore, the Bank announced a first rights issue of $50 million for next month and another issue of a similar size shall follow – potentially as early next year. The bank reported that across the Group, recovery efforts with regard to last year’s impairments continue, but have not yielded the desired results.
Meanwhile, both Bank of Valletta plc and HSBC Bank Malta plc shares declined by a marginal 0.5 per cent and 0.9 per cent respectively. The former was negotiated across the highest turnover for the week as it witnessed a turnover volume of 165,991 shares, to close at €2.12. On the other hand, 48 trades in HSBC shares were executed totalling 65,570 shares, closing at €2.11.
Malta International Airport plc shares slipped by 0.9 per cent as 15,890 shares changed ownership, closing €0.02 lower at €2.25. Similarly, Middlesea Insurance plc shares sagged by 2.2 per cent over three transactions of 5,638 shares, to close at €0.90.
Medserv plc shares fell by 2.3 per cent over a single trade of 3,000 shares, to close €0.03 lower at €1.30. In its interim Directors’ statement the company reported that it has continued to extend its operations and increase profitability. Particularly, the company is providing services to Romania in the form of a mud mixing and supply operation. The company secured a further area outside the Malta base, preparation of this site is in its final stages and is already being filled up with oil field equipment. Meanwhile, the 8,000sqm warehouse on the Malta base -although not yet completed – has also started to be used to store material requiring covered storage. Construction works of the solar farm at the Malta base are well advanced and is due to be completed and provide electricity to the grid from June 26, 2014. Preparation of Medserv (Cyprus) Limited’s base in Larnaca is on schedule for the commencement of the provision of operational support services to ENI on June 1, 2014. It is expected that the financial results for 2014 will be skewed towards the second half of the year as the majority of new contracts commence in that period.
Investors continued to support the equities in the I.T. sector as both 6pm (6pm) Holdings plc and RS2 (RS2) Software plc registered an increase in their share price despite low turnover. 6pm shares increased by 0.7 per cent across two trades of 4,622 shares, closing at £0.755, while RS2 shares rose by a minimal 0.04 per cent over seven deals of 15,686 shares. In its Interim Directors’ Statement, the company reported that during the first quarter of 2014 the group has traded as planned and whilst increasing its engagement with its existing clients, also progressed in negotiations with new clients.
The company further announced that the Group increased its revenue significantly by 38% from €2.1 million in Q1 2013 to €2.9 million in Q1 2014. This resulted in a net profit after tax of €0.47 million in Q1 2014 compared with €0.15 million in Q1 2013, an increase of 205%. The group has through RS2 Smart Processing Limited managed to sign two letters of intent with two prospective clients. Moreover, the company has pending proposals with other prospective clients in Europe and North America.
On a positive note, Malita Investments plc shares appreciated by 1.9 per cent over four trades of 19,107 shares, to close at €0.55. Meanwhile, the non-movers for the week were Simonds Farsons Cisk plc, Tigne Mall plc and GO plc shares as they all closed unchanged at €3.00, €1.969 and €0.525 respectively.
In the corporate bond market 21 issues were active, of which seven decreased, five advanced and nine remained unchanged. Total turnover amounted to €669,082. The 4.6% HSBC Bank Malta plc € 2017 headed the list of fallers as it fell by 1.3 per cent. Meanwhile, in the sovereign debt market turnover totalled to €22.5 million. A total of 26 issues were active, of which the short-dated issues registered a decline, while the long-term issues gained ground. The 4.5% MGS 2028(II) accounted for more than half the transacted value.