MSE Index turns negative

MSE Trading Report for week ending August 14, 2015

The MSE Index failed to sustain the initial upward rally witnessed earlier in the week having ended the week down by 0.44 per cent, to close at 4,209.482 points. Total turnover for the week stood at €1.3m, spread over 18 equities of which six appreciated, seven declined and five remained unchanged.

Mapfre Middlesea plc shares headed the list of gainers having rallied by 8.4 per cent – as its share price ended the week €0.17 higher at €2.20. The equity was negotiated across 14 deals of 25,761 shares.

Lombard Bank Malta plc shares added on to its recent winning streak having registered an increase for the fifth consecutive week. The banking equity witnessed five trades of 8,781 shares, closing 0.7 per cent higher at €2.115.

Conversely, HSBC Bank Malta plc shares stumbled by a significant €0.08 or 4.3 per cent as 27,302 shares changed ownership, closing at €1.80 after turning ex-dividend last Thursday.  Meanwhile, Bank of Valletta plc sharesoscillated between a weekly high of €2.30 and a low of €2.275, to ultimately close the week unchanged at €2.299. The banking equity was the most liquid for the week having witnessed a volume of 143,966 shares.

Likewise, FIMBank plc sharestraded flat at its four week low of $0.45 on two deals of 3,200 shares executed during Friday’s session.

After five months of inactivity, Island Hotel Group Holdings plc (IHGH) shares soared by 7.9 per cent to close at €1.101, on a single trade of 2,000 shares. On the other hand, International Hotel Investments plc (IHI) shares slipped by 0.7 per cent as nine deals of 36,722 shares were struck, closing at €0.80.

IHI announced the transfer of 38,457,860 shares from IHGH to IHI, amounting to 99.68 per cent of IHGH issued share capital. IHI will exercise its right to require all the holders of the remaining 0.32 per cent IHGH shares to sell and transfer such shares to IHI. IHI is required to issue and allot 9,195,128 ordinary shares of €1 each in the company in favour of the accepting shareholders.  On Monday, IHI issued 2,687,960 shares in favour of part of the accepting shareholders. The remaining 6,507,168 shares will be issued in favour of the remaining accepting shareholders on a date due 12 months from August 10, 2015, subject to terms and conditions. The remaining issued share capital is required to be sold and transferred to IHI by October 31, 2015. Following this, IHI intends to apply for the delisting of the entire issued share capital of IHGH.

The positive interim results issued by GO plc last Monday strengthened market interest in the telecommunications company, leading the equity to retouch the €3.60 level on Thursday. The company’s share price ended the week €0.072 higher at €3.57. 

The Group registered a profit before tax of €13m for the six-months ended June 30, 2015, compared to €8.5m registered in 2014. Revenue for the period amounted to €60.7m, a minimal decline of €52k from 2014. The Group experienced a marginal decline in revenue from its telecommunications business which was compensated for by growth in its data centre business. Meanwhile, earnings per share increased to €0.088.

MaltaPost plc shares appreciated by 1.3 per cent on a sole transaction of 2,389 shares, to close at a record high of €1.62. Similarly, Simonds Farsons Cisk plc shares maintained their all-time high of €5.25 as a single trade of a mere 583 shares were executed.

The other non-movers for the week were MIDI plc (MIDI) and 6PM Holdings plc (6PM) having traded unchanged at €0.34 and £0.76 respectively. The former equity witnessed one trade of 4,500 shares, while two deals of 2,389 shares were executed in 6PM.

Meanwhile, the share price of RS2 Software plc continued on its downward trajectory having declined by 4.7 per cent over 13 transactions of 64,294 shares, closing at €2.04. After close of trading on Friday, the company announced its interim financial results for the period ended June30,2015. The Group registered a profit before tax of €6.6m compared to €3m registered in the comparable period in 2014. Revenue for the period amounted to €11.5m, a rise of 49 per cent from 2014. Earningsper share increased to €0.053. Such positive results partially reflect the recognition of new license fees and an increase in service fees.

The share price of Tigne Mall plc enjoyed a shallow rally on Monday when it gained one per cent, ahead of the announcement of the company’s half yearly results. The equity then reversed its early gain having slipped by 1.2 per cent on the week as 34,700 shares changed hands, closing at €0.86. The company registered a profit before tax of €1.2m for the six months ended June 30, 2015, compared to €948,999 registered in 2014. Revenue for the period under review amounted to €2.6m, an increase of 6.3 per cent from 2014. Meanwhile, earnings per share increased to €0.012.  The Board of Directors of the company approved an interim net dividend payment of €0.01 per share to be paid on September 10, 2015 to shareholders on the company’s register at close of business on August 10, 2015.

Its peer, Plaza Centres plc recorded a 1.1 per cent increase in its share price as one deal of 10,200 shares was struck on Friday, to close at €0.96. Meanwhile, Medserv plc shares shed 1.3 per cent, shying away from its all time high of €2.37, closing the week at €2.34.

Elsewhere, Malta International Airport plc sharesdeclined by 1.3 per cent during Monday’s session to then maintain the€3.90 level, having turned ex-dividend on Tuesday. The equity was active on 18 trades of 48,600 shares. Likewise, Santumas Shareholdings plc shares declined by 2.4 per cent on thin volume, to close at €2.00. The company is expected to announce the financial results for the year ending April 30, 2015, on August 24.

In the corporate bond market turnover amounted to €2.3m.  A total of 23 issues were traded of which gainers and fallers tallied at 11 while one closed unchanged. Recording the best performance for the week was the newly listed5.1% 6PM Holdings plc Unsecured € 2025issue which moved up by 8.9per cent, to close at €108.90. Meanwhile the 5.35 % Bank of Valletta plc Sub I 2019issue headed the list of fallers as the bond declined by 2.7 per cent, to close at €110.01.

In the sovereign debt market activity was spread over 27issues of which 18gained groundand nine fell. The 3.2% MGS 2019 (V) issue was the most liquid, having witnessed a turnover of €5.12m, closing the week at €110.79 – up by 0.12 per cent. The 5.1% MGS 2022 (I) issue was the best performer over the week as it advanced by 1.35 per cent to €127.20.