Turnover up as investors’ sentiment improves
The MSE Index closed the week in the red as it eased a mere 0.1 per cent over the week to close at 4,322.691 points. Activity was spread over 16 equities of which half closed in positive territory, five lost in value while three closed unchanged, with turnover amounting €1.1m – a 45 per cent increase over the previous week.
Pulling the index lower was GO plc as its share price dropped by six per cent, to the €3.25 level, over 37 trades of 82,582 shares. Justifying the decline was the fact that the equity traded cum-div for the last time on Wednesday and consequently investors will no longer be entitled to the company’s net interim dividend. The payment of €0.3313 (€0.5097 gross) per share, will be settled in kind by the distribution of GO’s entire shareholding in Malta Properties Company plc. (“MPC”) to GO’s shareholders pro rata to the number of shares held by them in GO, following the approval of the spin-off of GO’s shareholding in MPC. GO shareholders registered on the Share Register as at the October 23, 2015 are entitled to one share in MPC for every share held in GO. The Company announced that shareholders will be requested to sign a document to effect the transfer of their shares. MPC shares shall be admitted to the Official List of the Malta Stock Exchange on November 23, 2015 and trading is expected to commence the following day.
Furthermore, in its Interim Directors’ Statement, the Company reported that positive trends were maintained throughout the third quarter of 2015 and anticipates closing the current financial year with increased profitability when compared to the previous year. This followed GO’s publication of its half yearly results, ending June 30, 2015 in which the Company reported increased profitability, in spite of stable revenue, when compared to 2014.
International Hotel Investments plc shares recorded a 1.8 per cent decline closing at €0.776 over three deals of 62,200 shares. On Tuesday, the company announced that a circular was issued to shareholders in respect of the recently announced bonus share issue. The Company outlined that every Eligible Shareholder is entitled to one Bonus Share for every 33.33 ordinary shares held as at October 15, 2015 and are expected to be admitted to listing shortlyafter allocation on or around October 23, 2015 and dealings expected shortly thereafter.
Malta International Airport plcshares shaved off one per cent from last week’s 2.4 per cent increase to close at €3.85 over a turnover of €117k.
The worst performer for the week was 6PM Holdings plc as its share price plunged by 7.1 per cent over two transactions of 27,500 shares to close at £0.65.
On a positive note, Bank of Valletta plc (BOV) shares inched 0.9 per cent higher to close at €2.362, partially recovering the two per cent loss registered over the past two weeks. This equity recorded the highest turnover for the week which totalled €322k.
On Friday, BOV announced that the Board of Directors is scheduled to meet on Friday, October 30, 2015 to consider and approve the Group’s and Bank’s Audited Financial statements for the financial year ended September 30, 2015 and to consider the declaration of a final dividend to be recommended to the Bank’s Annual General Meeting.
Moreover, BOV announced that it had been granted approval by the Listing Authority for the admissibility to listing on the Official List of the Malta Stock Exchange (MSE) of a Subordinated Debt Issuance Programme of a maximum aggregate principal amount of €150m. The Notes may be issued in a continuous or repeated manner up to October 15, 2016. The Bank has applied for the admittance of the Notes to the MSE Official List and for trading to commence thereafter. The purpose of the Notes is to strengthen Tier 2 capital requirements as required by European banking regulations and to partially meet general financing requirements.
HSBC Bank Malta plc shares rebounded from last week’s 0.6 per cent loss having gained 2.8 per cent over 14 transactions of 60,972 shares to close at €1.85. The other bank to close the week in the black was Lombard Bank Malta plc as its share price drifted 0.5 per cent higher over thin volume to close at €2.25 – a four-year high.
Conversely, FIMBank plc shares closed at $0.43 having declined by 4.7 per cent over four deals of 17,300 shares.
The other financial equity, Mapfre Middlesea plc gained 1.4 per cent to close at €2.201 as 12 transactions of 13,623 shares were concluded. In its interim directors’ statement Mapfre Middlesea plc announced that during the third quarter, premiums and revenues continued registering volumes beyond forecasts due to recent acquired portfolios and low yields offered in alternative investments in the market. Meanwhile, the Group’s investment portfolio recorded subdued performance in line with the downturn in the financial markets, when compared to the same period in 2014. The company reported that the statutory solvency positions remain strong and in excess of regulatory requirements.
It was a positive week for the property sector, as Malita Investments plc headed the list of gainers as its share price rallied by 6.1 per cent to close at €0.935 over a single deal of 1,100 shares.
Tigne Mall plc shares also registered significant gains as six trades of 24,200 shares pushed the price up by 4.4 per cent to close at an all-time high of €0.95.
In the same sector, Plaza Centres plc shares advanced by two per cent to close at €1.00 over two deals of 5,000 shares. During the week the company reported that since the publication of their half-yearly financial report occupancy levels increased marginally to 94 per cent up to September 2015, and continued to increase in the fourth quarter due to the opening of a new outlet. Revenue and profit before tax were higher when compared to the corresponding period in 2014 while costs also increased. Year-end financial results are expected to be in line with expectations, barring any unforeseen circumstances. The company also announced that Mr. Charles J. Farrugia was appointed Chairman of the Board of Directors, following the recent passing away of Mr. Albert Mizzi.
The other gainer for the week was Maltapost plc as its share price recorded an all-time high for the fourth consecutive week, having appreciate by 1.7 per cent to close at €1.82 as 28,125 shares changed hands over two transactions.
The non-movers for the week were Grand Harbour Marina plc, RS2 Software plc and MIDI plc ending the week at €1.00, €2.49 and €0.36, respectively.
Island Hotels Group Holdings plc announced that as of October 22, 2015, the Company’s issued share capital on the Official List of the Malta Stock Exchange was discontinued.
In the corporate bond market, 27 issues were active of which 15 closed higher, six headed south while another six remained unchanged – amounting to a total turnover of €653k, a marginal increase over the previous week. The newly issued 4.5% Hili Properties plc Unsecured € 2025 bondwas the best performer as it soared by seven per cent to close at €107, recording the highest turnover as 43 trades of 140,000 nominal totalled €150k.
On the sovereign debt front, there was a positive reaction following comments by President of the European Central Bank, Mario Draghi, during a press conference held in Malta. Mr. Draghi indicated that there is a possibility of additional stimulus measures by the end of the year. A total of 23 stocks were traded as 15 traded higher while eight traded lower – with the fallers being the short dated issue. The 2.3% MGS 2029 (II) FI Oct 15 r registered the largest gain as it put on 2.8 per cent on the issue price. Turnover for this stock amounted to €2.1 million, 33 per cent of total turnover which totalled to €6.47m.