GO shares continue to recoup

August 19, 2016

MSE Trading Report for week ending August 19, 2016

The MSE Index partially erased last week’s gain having declined by a marginal 0.03 per cent, to close at 4,424.983 points. Activity was spread across 15 equities of which gainers and losers tallied at six and three closed unchanged. Turnover amounted to €794,545.

GO plc (GO) shares appreciated by a further 1.7 per cent to last week’s 3.6 per cent gain as 12 deals of 41,700 shares were struck, closing €0.05 higher at €2.97. GO announced that as part of a restructuring process, which will include the voluntary liquidation of Forgendo and Giradena, Forgendo Limited has transferred its entire shareholding in Giradena Limited, equivalent to a 50% shareholding to its shareholders GO and EITML on a 50:50 basis; who have also acquired the remaining 50 per cent from Massar Investments LLC. As a result of the above, GO and EITML are the direct owners of 50% each in Giradena.

Giradena has further transferred its entire shareholding in Forthnet to its shareholders GO and EITML for no consideration. Moreover, GO acquired an additional direct shareholding in Forthnet to own a total direct shareholding in Forthnet of 22.605 per cent. This will ensure that GO will be able to manage and take all decisions with regard to its investment in Forthnet entirely independently of EITML. In a separate announcement last Wednesday, GO announced that Tunisie Telecom has issued a press release stating that all the conditions to TT ML Limited’s Offer for shares in Go plc have now been satisfied.

Malta Properties Company plc shares extended their recent winning streak by 1.9 per cent over seven deals of 10,200 shares, closing at its weekly high of €0.535. The company announced that the Board of Directors of the Company is scheduled to meet on August 25, 2016 to discuss the Group Interim Unaudited Financial Statements for the six-month period up to June 2016.

Malta International Airport plc shares advanced by €0.03 or 0.7 per cent across 13 transactions of 18,971 shares, to close at €4.25. The Group registered a profit before tax of €12.7 million, compared to €11.4 million registered in 2015. Revenue for the period under review amounted to €31.4 million a rise of 5.1 per cent from 2015 – of which €21.8 million were generated from the Airport segment, whereas the remaining €9.5 million were generated from the Retail and Property segment. Earnings per share increased to €0.0603. The directors approved a net dividend of €0.03 per share on all shares settled as at close of business on August 24, 2016.

Bank of Valletta plc (BOV) shares appreciated by 1.4 per cent as 36,840 shares changed ownership over 24 trades, closing €0.03 higher at €2.23. This positive performance followed BOV’s statement that Insight Investment Management Limited (IIM) entered into a tri-partite Share Transfer Agreement with BOV and Valletta Fund Management Limited (VFM) to sell and transfer to BOV its 40 per cent shareholding in VFM, for a total consideration of €5 million and subject to the terms and conditions set out in the Share Transfer Agreement. Settlement of the transaction took place immediately and therefore, BOV is now the sole shareholder of VFM. All other service agreements between IIM and VFM will continue in accordance with their respective terms following the transaction.

HSBC Bank Malta plc shares slipped by a minimal 0.1 per cent as six transactions of 7,497 shares were negotiated at €1.56. Meanwhile, Lombard Bank Malta plc shares declined by €0.049 or 2.2 per cent over the highest turnover of the week of 103,578 shares, to close at €2.20.

FIMBank plc shares traded flat at $0.98 across two deals of 11,430 shares. On a positive note, Mapfre Middlesea plc shares increased by a marginal 0.5 per cent as a sole trade of 1,000 shares was executed at €2.06.

Plaza Centres plc shares edged 0.9 per cent higher as 9,000 shares changed ownership over a sole transaction, closing at €1.08. Conversely, Tigne Mall plc shares declined by one per cent across two deals of 10,000 shares, to close at €1.04.

Medserv plc shares stumbled by €0.07 or four per cent as 28,400 changed hands, to close at its weekly low of €1.70, having traded at a high of €1.75. On Thursday, Medserv announced that due to unforeseen circumstances, Energy Portugal Unipessoal LDA have been prevented from carrying out exploration activities as planned. This notwithstanding, Medserv continues to operate the base in Portugal and provide related services to ENI.

International Hotel Investments plc shares fell by 4.6 per cent across five deals of 24,380 shares, closing €0.03 lower at €0.62. Similarly, MIDI plc shares edged 2.7 per cent lower as two trades of 6,000 shares were struck, to close at €0.365.

RS2 Software plc shares oscillated between a weekly high of €1.90 and a low of €1.84, to ultimately close unchanged at €1.85. The I.T. equity was active on 37 transactions of 81,914 shares. Similarly, Malita Investments plc shares closed unchanged at €0.851 as two trades of 15,000 shares were negotiated.

In the corporate bond market turnover amounted to €876,952 spread across 34 issues of which nine gained ground, 12 declined and 13 closed unchanged. The recently-issued 4% International Hotel Investments plc Secured € 2026 was the most liquid issue having witnessed a turnover of €296,014, to close 0.2 per cent lower at €103.50.

In the sovereign debt market 23 issues were active of which six declined minimally, 15 appreciated and two closed unchanged. Turnover amounted to €5.8m. The 2.5% MGS 2036 (I) was the most liquid issue as turnover reached €854K closing at €108.19.