MSE registers third week of gains
MSE Trading Report for week ending August 1, 2014
The MSE Index registered a gain for the third consecutive week having gains a further 0.15 per cent, closing at 3,391.085 points. Activity was spread across 13 equities of which four gained ground, six fell and three closed unchanged. Lombard Bank Malta plc (Lombard) shares were the top performers for the week, while Plaza Centres plc (Plaza) shares recorded the worst loss.
Lombard shares spiked by an impressive 13.3 per cent over two trades of 2,830 shares, closing €0.20 higher at €1.70. Conversely, HSBC Bank Malta plc shares slid by €0.03 or 1.5 per cent despite a gain of two per cent during Friday’s session, to close at €2.04. Trading volume reached 121,896 shares on 37 transactions, as investors await the six monthly financial results to be announced next Monday.
Meanwhile, Bank of Valletta plc (BOV) shares oscillated between a weekly low of €2.08 and a weekly high of €2.135, to ultimately close unchanged at €2.10. The banking equity witnessed 42 deals of 84,222 shares. In its interim directors statement the bank reported that from the beginning of April until the end of July, there was weak demand for business credit, which was partly countered by robust demand for home loans. Growth in deposits far exceeded growth in lending – leading to increasing levels of liquidity. The persisting low yields on proprietary investments, coupled with negative rates on overnight deposits with the European Central Bank (ECB), had an adverse influence on the interest margin, which was somewhat mitigated by increased volumes. Fair value movements resulted in moderate price gains over the period. Fees and commission income continued to grow across all key business lines. Costs remained under control and whilst higher than last year, due partly to increased regulatory costs, are in line with forecasts. From November 2014, the bank will come under the direct supervision of the ECB as part of the Single Supervisory Mechanism. In preparation for this transition, the ECB is carrying out an Asset Quality Review and has commenced a stress testing exercise, with the aim of evaluating asset quality, assessing the adequacy of provisions and determining the resilience of the Bank’s capital buffers under extreme conditions. The final outcome of these two exercises is expected to be announced towards the end of October 2014.
Malta International Airport plc shares gained 2.2 per cent closing at a record high of €2.35. The local airport operator’s equity was negotiated across 12 deals of 10,506 shares. On Wednesday, the Board of Directors of the company approved the group’s interim financial statements for the six months ended June 30, 2014. The company registered a profit before tax of €10.4 million, compared to a €8 million registered in 2013. Revenue for the period under review amounted to €28.1 million, an increase of 11.5 per cent on 2013. The Directors also approved a net interim dividend of €0.03 per share (gross €0.0461538) equivalent to €4,059,000 for payment on all shares settled as at close of business on August 18, 2014 and payable by not later than September 12, 2014.
GO plc shares advanced by a further 1.7 per cent as 18 deals of 55,950 shares were struck, to close at a six year high of €2.40. Throughout July 2014, the telecommunications equity rallied by a significant 16.7 per cent.
In the I.T. sector, RS2 Software plc shares added on to last week’s positive performance as they climbed by a further two per cent across the highest turnover for the week of 170,626 shares, to close €0.05 higher at €2.60. Conversely, Crimsonwing plc shares slipped by a minimal 0.6 per cent on a single transaction of 3,500 shares, closing at €0.815.
Plaza shares were the main slackers for the week as they took a 6.7 per cent pounding, to close €0.04 lower at €0.56. Tigne Mall plc shares shed one per cent of their share price as four transactions of 119,800 shares were dealt, closing at €0.515. The Board of Directors of the company is scheduled to meet on August 27, 2014 to consider and approve the condensed interim financial statements for the half-year ending June 30, 2014 and to consider the declaration of an interim dividend.
The other fallers for the week were Middlesea Insurance plc and Simonds Farsons Cisk plc shares having declined by 0.6 per cent and 2.7 per cent respectively. The former was executed across five deals of 10,681 shares, to close at €0.875, while the latter was active over five transactions of 6,967 shares, closing at €2.87.
On Wednesday, Malita Investments plc (MLT) shares traded flat at €0.55 over a single transaction of 9,500 shares. The company announced that the Board of Directors approved the company’s condensed interim financial statements for the six months ended June 30, 2014. The company registered a profit before tax of €8.2 million, compared to a €6.8 million registered in 2013. Revenue for the period under review amounted to €3.4 million, an increase of 0.5% from 2013. The Directors also approved the payment of a gross interim dividend of €450,000 or €0.0150 per ordinary share equating to an interim net dividend of €292,500 or €0.00975 per share. The interim dividend will be paid on September 12, 2014 to the shareholders on the company’s share register at close of business at the MSE on August 11, 2014.
MaltaPost plc shares also closed the week unchanged at €1.12. The postal operator’s equity was negotiated over five deals of 17,990 shares.
In the corporate bond market, turnover amounted to €950,394 spread across 26 issues of which seven decreased, 11 gained ground and eight closed unchanged. The 7.5% Mediterranean Investments Holding plc € 2015 was the worst performer as it plunged by four per cent. Tumas Investments plc announced the allocation policy to be applied to applications received in respect of its €25 million 5% unsecured bonds 2024. A total of 3,370 applications representing a total value of €43,278,600 were received from holders of the maturing bonds (6.25% bonds due 2014-2016) and from holders of the 6.2% bonds 2017-2020. In view of the overwhelming response, the Intermediaries' Offer did not take place. All applications received from holders of the maturing bonds that opted to exchange their maturing bonds were allocated in full. Meanwhile, with regards to the holders of the maturing bonds who wished to increase their investment in the company, the company decided to allocate the first €1,000 in full and applications with amounts in excess of €1,000 have been allocated a further 10.55 per cent of the balance subject to rounding up to the nearest €100. Refunds of unallocated monies will be affected by not later than next Tuesday. The bond was admitted to listing on the Malta Stock Exchange last Thursday.
Finally, in the sovereign debt market 24 issues were active, the majority of which appreciated in value. The 4.5% MGS 2028 (II) was the most liquid issue as it witnessed a turnover volume of just under 5.9 million nominal. Meanwhile, on Thursday, the Treasury announced that due to the high demand for the stocks offered in the latest Malta Government Stock (MGS) issuance, the subscription in the new MGSs closed on Wednesday at 5.00pm shortly after the amount of applications received from members of the public exceeded the amount on issue and the overallotment option, totaling €180 million. The allotment policy will be announced in due course.