MSE Index maintains negative stance

MSE Trading Report for week ending December 23, 2015

The MSE Index ended the three-day trading week 0.29 per cent lower, closing at 4,416.41 points. A total of 16 equities were active of which 10 fell in value, while six gained ground as turnover reached over €1.2m.

Medserv plc shares headed the list of fallers having stumbled by a significant €0.345 or 16.5 per cent as 30 deals of 88,392 shares were struck, closing at €1.75. The company announced that it has been granted approval by the Listing Authority for the admissibility to listing on the Official List of the MSE of €30,000,000 Unsecured Bonds redeemable in 2026 in any one or a combination of, a 5.75% USD Unsecured Bond redeemable in 2026 of a nominal value of $100 each issued at par (minimum investment and retention amount per investor of $55,000) and a 4.5% Euro Unsecured Bond redeemable in 2026 of a nominal value of €100 each issued at par (minimum investment and retention amount per investor of €50,000). The Bonds shall be initially offered to financial intermediaries for subscription, with any unsubscribed amounts offered to the public. Furthermore, the company is offering 10,000,000 ordinary shares by way of a rights issue on the basis of two shares for every nine shares already held at a share offer price of €1.50 per ordinary share, to shareholders on the Company’s register as at December 29, 2015. The proceeds will be used to fund the acquisition of the METS Group.

In the banking sector, HSBC Bank Malta plc shares increased by 1.2 per cent across 13 trades of 43,902 shares, closing at €1.76. Following its announcement of the cost reduction programme, the bank clarified that applications received for voluntary early retirement are in the process of being reviewed and no decisions have been taken. The Bank will make an announcement on the matter with all the relevant facts in due course according to its market listing obligations.

FIMBank plc shares advanced by 4.7 per cent across three trades of 44,077 shares, to close at $0.67. Conversely, Bank of Valletta plc (BOV) shares slipped by €0.03 or 1.3 per cent as 38 trades of 68,350 shares were negotiated, closing at €2.30.

Meanwhile, Lombard Bank plc announced that during the next board meeting on March 10, 2016, the board of directors shall approve the Group’s and the Bank’s final Audited Accounts for the Financial Year ending December 31, 2015 and consider the declaration of a final dividend to be recommended to the Bank’s Annual General Meeting, to be held on April 28, 2016.

Mapfre Middlesea plc shares were the top performers, having advanced by seven per cent over 11 deals of 6,030 shares, closing €0.15 higher at €2.30. The insurance provider’s equity is, so far, the best performer year-to-date having appreciated by a significant 131.4 per cent.

Malta International Airport plc shares strengthened by €0.10 or 2.6 per cent across 36 transactions of 103,547 shares, to close at €4.On Monday, the company announced that with continuous year on year growth, the company intends to carry on investing in the airport. The company outlined an investment plan of a capital expenditure of €9.8 million for 2016 which include a €6.3 million investment through the rehabilitation of Apron 9, upgrades on Runway 23-05, and the replacement of the instrument landing system as well as a new state-of the art Airport Operational Data Base system. In addition €28 million will be invested in the Terminal Expansion and an estimated €40 million on the development of SkyParks 2.

Simonds Farsons Cisk plc failed to maintain its all-time high share price, having declined by 5.5 per cent and closing €0.35 lower at €6. The equity witnessed two trades of a mere 529 shares. Likewise, RS2 Software plc shares slid by 0.5 per cent as two deals of 7,541 shares were executed, to close at €3.16.

Conversely, 6PM Holdings plc shares edged 1.5 per cent higher as two transactions of 5,873 shares were struck, closing at £0.69. Likewise, GO plc shares increased by a further 1.7 per cent over five trades of 5,122 shares, to close at €3.

MaltaPost plc shares succumbed to selling pressure having declined by €0.17 or 8.6 per cent, to close at €1.80, as it traded for the first time since turning ex-dividend on December 15, 2015. The postal service operator’s shares were negotiated across five transactions of 110,000 shares.  Similarly, Tigne Mall plc shares decreased by 2.6 per cent over six deals of 52,416 shares, closing at €0.94.

Grand Harbour Marina plc shares fell by €0.04 or 3.9 per cent over a sole trade of a scant 500 shares, to close at €1. On a similar note, Malita Investments plc shares inched 0.1 per cent lower as two deals of 10,000 shares were executed, closing at €0.984.

International Hotel Investments plc (IHI) shares declined by 1.3 per cent as 6,306 shares changed ownership across four trades, to close at €0.77. Likewise, Malta Properties Company plc shares fell by 3.9 per cent over 12 transactions of 91,299 shares.

In the corporate bond market, 22 issues were active of which eight increased, seven declined and another seven closed unchanged. Turnover amounted to €247,241. The newly-issued 3.5% BOV € Notes 2030 Series1 Tranche 1 registered the best performance having advanced by five percent on is first trading day, to close at €105. Conversely, the 5.75% IHI Unsecured Bonds € 2025 was the worst performer having declined by 5.2 per cent, closing at €106.15.

In the sovereign debt market turnover totalled €3.5m spread across 19 issues of which 16 decreased and three gained ground. The 4.45% MGS 2032 (II) headed the list of gainers having increased by 1.2 per cent, closing at €134.54, while the 4.1% MGS 2034 (I) was the most liquid issue having witnessed a turnover of €1.6m however registering a loss of 0.9 per cent, to close at €126.70.