MSE index recovers last week’s losses

MSE Trading Report for week ending August 28, 2015

The MSE Index fully recovered from last week’s 0.26 per cent loss as it closed the week 0.31 per cent higher at 4,211.923 points. Out of the 15 active equities, nine recorded an increase, five lost in value while one closed unchanged. Total turnover amounted to €1.78 million, an increase of 6.8 per cent over last week.

In the banking sector both HSBC Bank Malta plc (HSBC) and Lombard Bank Malta plc (Lombard) recouped last week’s losses to close 2.86 per cent and 0.71 per cent higher respectively. HSBC closed at €1.80 as activity was spread over 26 deals of 86,733 shares. Its peer, Bank of Valletta plc lost further ground as it closed at €2.25, 0.8 per cent lower over the highest turnover for the week which stood at €672K. Meanwhile, Lombard closed at €2.115 as 13 trades of 73,387 shares were concluded. During the week, Lombard announced that it registered a profit before tax of €4.3m for the six months ended June 30, 2015, compared to €3.27m registered in the same comparable period of 2014 – primarily due to an improved performance by Maltapost. Net interest income for the period under review amounted to €6.4m, a decline of 5.8 per cent from 2014. Earnings per share increased to €0.052.

Heading the list of gainers was Medserv plc as its share price soared by 5.5 per cent to close at €2.50 – a new all-time high – after experiencing a late surge during the last trading session of the week as investors reacted to the positive financial results that were published on Thursday. The Group registered a profit before tax of €4.5m, compared to €564k registered in 2014. Turnover for the six month amounted to €26.9m compared to €9.5m in the same period last year. The significant increase in profit margins was mainly due to a decline in the low margin business which formed a substantial portion of last year’s turnover. Earnings per share increased to €0.105.

The other equities which ended the week at an all-time high were Simonds Farsons Cisk plc (SFC) and Maltapost plc. SFC advanced by 4.9 per cent to close at €5.55 over thin volume of three deals of 432 shares while Maltapost closed at €1.636, a rise of 0.4 per cent on 4,986 shares.

In the property sector, Plaza Centres plc shares appreciated by 4.12 per cent to close at €1.01 as 9,500 shares were traded over three deals. Meanwhile, Tigne Mall plc closed at €0.93 as it rallied by 4.5 per cent as 12,175 shares changed hands. Malita Investments plc also recorded an increase as it gained 0.43 per cent to close at €0.94 on 10,638 shares.

Elsewhere, Santumas Shareholdings plc announced that the Company registered a profit before tax of €515K for the year ended April 30, 2015 down by 28 per cent from the €714,569 reported in 2014. Earnings per share decreased to €0.2523. In the upcoming Annual General Meeting the Board of Directors are set to approve a bonus share issue of one share for every ten to shareholders on the company's share register as at close of business on Friday, 8th January 2016. No activity was recorded for this equity.

The other gainer for the week was International Hotel Investments plc which appreciated by 1.2 per cent to close at €0.785 on 46,000 shares – slightly recovering from its recent downward trend. On Friday, the Group announced that it registered a loss after tax of €0.9m, compared to a loss of €7.6m registered in the comparable period of 2014. Revenue for the period under review amounted to €55.38m, a decline of 0.37 per cent from 2014. The increase in revenue generated from hotels in Malta, Prague, Budapest, Lisbon and London was offset by declines in Russia and Libya as a result of political and economic turmoil. Despite this, the Group reported that the devaluation of the Rouble left a negative impact and the hotel in Tripoli was closed for most of the period under review. Loss per share decreased to €0.002 from €0.014.  Moreover, the Group announced that the acquisition of ownership of the remaining 0.32 per cent of the entire issued share capital of Island Hotels Group Holdings p.l.c will be carried out through the company’s right to require all the shareholders of the remaining shares to sell and transfer these shares to IHI. Additionally, PricewaterhouseCoopers have determined that the Fair Price of €1.12,4 per remaining IHGH share is higher than the Equitable Price of €1.00 per share in IHGH. 

IHI continued to state that the transfer of all remaining IHGH shares and the processing of applicable payments shall be completed by no later than September 4, 2015. Once this process is complete, IHI intends to apply for the delisting of the entire issued share capital of IHGH.

Heading the list of fallers were Mapfre Middlesea plc as itsshare price  plunged by 4.4 per cent to close at €2.15 after five consecutive weeks of gains. This equity recorded a turnover of €66k over 9 deals of 30,633 shares. Elsewhere, GO plc closed at €3.48 – 2.5 per cent lower as 21,150 shares were traded over 12 trades. On Friday, Go announced thatits subsidiary companies Mobisle Communications Limited and Worldwide Communications Limited are both to be merged with the Company. 

The other faller for the week was Malta International Airport as it eased 0.3 per cent to close at €3.89 on a turnover of almost €130k.

In the IT sector, 6PM Holdings plc dropped by a further 3.4 per cent to close at £0.71 over low turnover of £2,985. Its peer, RS2 Software plc closed unchanged at €2.30 as 92,946 shares changed hands over 28 deals.

Global Capital plcreporting a profit before tax of €1.2m for the period ending June 30, 2015, compared to a loss of €0.976m registered in 2014. Commissions and fees receivable for the period under review amounted to €1.358m – a rise of 1.96%  from 2014. Earnings per share increased to €0.037.

Additionally the company  updated the circular issued to shareholders which outlined the resolutions that shall be addressed at the next Annual General Meeting, to be held on September 4, 2014. The Circular explained that the Share Purchase Agreement(SPA) and the Placement Agreement entered into by EIP plc are subject, amongst others, to the condition that the MFSA confirms that the Share Purchase and the subscription by EIP to its pro rata entitlement of the proposed Rights Issue shall be considered as one transaction and that accordingly the prohibition shall not exclude EIP from subscribing to its pro rata entitlement of the Rights Issue. Additionally, if EIP acquires a controlling Interest in the Company, due to pre-emption rights in respect of the proposed Rights Issue, EIP is exempted from the obligation to make a mandatory bid. The company also announced that the MFSA has confirmed the two conditions and that both conditions have been satisfied.

In the corporate bond market total turnover was equal to last week’s at €1.75m as 29 issues were active of which seven increased in value, 13 fell out of favour while nine closed unchanged. The 5% Hal Mann Vella Group plc Secured Bonds € 2024  headed the list of gainers as it climbed by 0.9 per cent over thin volume of three deals of 9,700 nominal to close at €111. On the other hand, the 4.8% Bank of Valletta Plc Sub € 2020 lost most ground as it close 4.2 per cent lower at €104. The most liquid issue was the 5.1% 6PM Holdings plc Unsecured € 2025 as it recorded a turnover of €600k, 34 per cent of total turnover, closing at €108.80.

The sovereign debt bonds recorded significant losses as all of the 17 stocks closed in the red. The 4.65% MGS 2032 (I) and the 4.1% MGS 2034 (I) both decreased by 2.2 per cent closing at €130.86 and €124.99 respectively. Total turnover stood at €2m, 50 per cent lower than the previous week.