Positive sentiment prevails on MSE

MSE Trading Report for week ending March 6, 2015

The MSE Index more than recouped last week’s marginal loss having ended this week with a 2.47 per cent gain to close at 3,532.422 points. Turnover amounted to €2.7 million spread across 18 equities of which 12 equities advanced, five declined and one closed unchanged.

Malita Investments plc shares were the best performers having recorded a 16.9 per cent increase over four deals of 17,495 shares, to close at its all-time high of €0.90 and thus registering a year-to-date rally of 40.6 per cent. On the other hand, FIMBank plc headed the list of fallers as its share price plunged by 4.1 per cent over five transactions of 32,969 shares, to close at $0.47.

HSBC Bank Malta plc shares outperformed other banking equities this week having edged €0.065 or 3.5 per cent higher, to partially recoup last week’s loss of 7.4 per cent. The equity was negotiated across 81 trades of 450,101 shares on a turnover worth €860k and closing at €1.935.

Bank of Valletta plc shares gained a further 1.9 per cent over 48 deals of 99,656 shares, to close at its weekly high of €2.16. Also on a positive note, Lombard Bank Malta plc shares registered a 0.5 per cent gain as a minimal 990 shares changed ownership, closing at €1.93.

Malta International Airport plc witnessed a remarkable performance, as its share price soared by €0.29 or 10.1 per cent on the week. The equity was active across 42 transactions of 310,889 shares, taking the lion’s share of this week’s trading with a turnover of €950k. Intra-week its share price ranged between a low of €2.92 and an all-time high of €3.15, at which it closed – this equity is now recording a year-to-date gain of 34 per cent.

Last Thursday, the company released its traffic results for February 2015 whereby the local airport operator reported that it had hosted 208,896 passengers in February – an 8.1 per cent increase over February 2014. These results were achieved due to an increase in aircraft movements, which translated to a seat capacity increase of 3.1 per cent over last year.  An increase in seat load factor of 3.4 per cent was also registered. Winter traffic from November 2014 to February 2015 has grown by over 43,000 passengers – an increase of 5.1 per cent over the same period last year. Almost half of February’s growth came from traffic to and from Italy, with an increase of 7,046 passengers and a 17 per cent uplift from 2014.

Similarly, GO plc shares recorded a 5.1 per cent gain, having jumped to a 7-year high of €2.81 as 200,667 shares changed hands. The Board of Directors of the telecommunications provider is scheduled to meet next Tuesday to consider and approve the audited financial statements for the financial year ended December 31, 2014 and to consider the declaration of a final dividend to be recommended to the company’s Annual General Meeting AGM.

Meanwhile,Simonds Farsons Cisk plc and Tigne Mall plc shares both closed at record highs of €3.25 and €0.701 respectively. The former witnessed three trades of 2,291 shares, recording a 1.6 per cent gain, while the latter edged 0.2 per cent higher on a sole transaction of 1,200 shares. The Board of Directors of Tigne Mall plc is scheduled to meet on April 9, 2015 to consider and approve the audited financial statements for the financial year ended December 31, 2014 and to consider the declaration of a final dividend to be recommended to the company’s AGM.

Medserv plc shares rallied by €0.10 or seven per cent as three deals of 27,000 shares were negotiated, thus closing at their 21-month high of €1.52. The company’s AGM is scheduled to be held on May 28, 2015. Conversely, MIDI plc shares fell by 2.1 per cent across two transactions of 4,200 shares, closing at €0.23.

In the I.T. industry, RS2 Software plc was the only positive performer having edged €0.01 or 0.3 per cent higher on three trades of 3,350 shares, to close at €2.96. On the other hand, 6pm Holdings plc shares declined by 1.4 per cent on a single transaction of 3,400 shares, to close at £0.69.

Meanwhile, Loqus Holdings plc shares traded flat at €0.121 on low volume.

International Hotel Investments plc (IHI) shares failed to sustain last week’s gain as it shed 0.8 per cent on three transactions of 14,690 shares, to close at €0.645. Elsewhere, Santumas Shareholdings plc shares declined by 1.5 per cent, closing at €1.97.

On the other hand, both Middlesea Insurance plc (Middlesea) and Grand Harbour Marina plc (GHM) ended the week in positive territory, registering gains of four per cent and 0.6 per cent respectively.  Middlesea shares were dealt across eight trades of 16,891 shares, to close at €1.05, while five deals of 5,700 shares were executed in GHM.

In the corporate bond market 26 issues were active of which 12 gained ground, eight decreased and six closed unchanged. The 5.6% GlobalCapital plc € 2014/16 was the worst performer with a one per cent decline, to close at €96, while the 6.25% IHI € 2015-2019 recorded the highest gain of three per cent, closing at €103.

In the sovereign debt market activity was spread across 26 issues of which short-term issues declined marginally, while long-dated issues registered significant gains. Worth noting is the 4.1% MGS 2034 (I) r, which soared by 1.7 per cent to close at €123.

On Monday, the Treasury announced the allotment policy of the latest new Malta Government Stock issues. All applications subscribed in the 2% MGS 2020 (V) F.I. will be accepted in full. Applications subscribed in the 3% MGS 2040 (I) up to and including €10,000 in nominal terms shall be met in full, while applications in excess of €10,000 shall receive a minimum of €10,000 per applicant and an additional 12 per cent of the remaining unallocated balance per applicant, rounded up to the nearest €100.