MSE Index at a seven-year high

The MSE Index built on last week’s 2.2 per cent rise to close 0.49 per cent higher at 4,228.224 points, thus reaching a seven-year high. A total of 14 equities were traded – four gained in value, five dropped out of favour while another five closed unchanged. Total turnover stood at €1.1m.

In the banking industry, HSBC Bank Malta plc rebounded from last week’s 1.6 per cent loss to close five per cent higher as 135,413 shares were exchanged over 36 deals. This upward trend followed the announcement of the payment of an  interim gross dividend of €0.051 per share (€0.033 net of tax) compared to €0.0405 – readjusted to reflect the bonus issue of one is to nine – distributed in the comparable period in 2014. This dividend is payable to shareholders on the bank’s register of shareholders as at August 14, 2015. In its interim financial results the bank reported that it registered a profit before tax of €36.3m, compared to €39.6m registered in the comparable period ending June 30, 2014. Net interest income for the period under review amounted to €60m, a rise of 2.95% from the comparable period of 2014 while an increase in compliance and regulatory costs had a negative impact on profitability

Lombard Bank plc shares registered a late push, as the share price increased by 2.5 per cent during Friday’s session to close at €2.10, a 41-month high.  On the other hand, Bank of Valletta plc (BOV) shares traded flat throughout the week at the €2.30 level to close marginally lower at €2.299. BOV shares registered the largest turnover for the week of €299k, representing 28 per cent of total turnover, as 38 deals of 130,179 shares were concluded.

Heading the list of fallers was FIMBank plc as its shares stumbled by 9.1 per cent as 25,390 shares changed hands, closing at a three-week low of $0.45. This reflected the negative results that were published by the Group as it reported a loss after tax of $8.64m compared to a profit of $1.45m registered in the comparable period ending June, 2014- which were restated for discontinued operations. Net interest income for the period under review amounted to $16m, a rise of 16.7 per cent from 2014.

The other gainers for the week were Mapfre Middlesea plc and Malita Investments plc. Mapfre Middlesea plc sharesclimbed by 0.9 per cent to reach a six-year high, closing the week at €2.03.  Activity in this equity was spread over eight deals of 7,117 shares. Meanwhile, Malita Investments plc shares continued to build on last week’s 3.3 per cent increase as they rallied by a further 2.2 per cent to close at €0.95.

On the contrary, RS2 Software plc shares fell by a further 2.3 per cent to close at €2.14 after 28,580 shares were traded over 12 deals. Its peer, 6pm Holdings plc reported that the Group registered a profit before tax of £413,199, compared to £385,263 registered in the comparable period ending June 2014. Revenue for the period under review amounted to £4.4m, a decline of 8.3 per cent from 2014. Meanwhile, earnings per share increased to £0.02.

Meanwhile, MIDI plc pared last week’s gain to close 1.5 per cent lower at €0.34. This week’s other faller was GO plc as it retracted slightly following last week’s 11.1 per cent gain to close 0.1 per cent lower at €3.498.

The non-movers for the week were, Simonds Farsons Cisk plc, Malta International Airport (MIA), Santumas Shareholdings plc, Tigne Mall plc and Maltapost plc. Their equities closed at €5.25, €3.95, €2.05, €0.87 and €1.60 respectively. MIA published the traffic results for the month of July and reported an increase of 7.1 per cent in passenger traffic, hosting 547,970 passengers at the airport. To date, traffic through Malta International Airport in 2015 increased by 6.9 per cent when compared to the same period last year.

GlobalCapital plcreported that the Group registered a profit aftertax of € 222K for the financial year ending December 31, 2014 -compared to loss after taxation of €3.7 registered in2013. This turnaround was derived from a substantial growth in the Group’s life insurance businessas the life company recorded a profitafter taxof  €2million  in 2014compared to alossof €505kinthe previous year. Meanwhile,the health insurance agency’s profit after taxation amounted to €574k in 2014, a decline from €931k reported in 2013. The company reports smaller impairments in itsproperty portfolio in 2014, amounting to €323k, a substantial decline when compared to 2013. Similarly, the losses incurred in the Group’s investment company have declined to€464kin 2014,compared toa loss of €1.1m, incurred in the previous financial year. The earnings per share increased to €0.02.

In the corporate bond market turnover amounted to €2.6m.  A total of 32 issues were traded of which 14 gained in value, seven lost ground and 11 closed unchanged.The newly listed 5.5% Mediterranean Investments Holdings plc Unsecured € 2020 recorded a six per cent increase to close at €106.01 in its first week of trading. Meanwhile, the 4.25% Bank of Valletta plc € Notes 2019 Series 2 Tranche 1 faltered by 2.8 per cent to €105.01.

In the sovereign debt market 25 issues were active of which 11 advanced, 10 declined while four did not change value. The 2.3% MGS 2029 (II) registered the highest gain of 1.9 per cent closing at €104. On the other hand, the 3.4% MGS 2040 lost 0.6 per cent to close at €108. Meanwhile, the 3.2% MGS 2019 (V) registered the highest turnover of €2.17m – 25 per cent of total turnover which stood at €8.8m.