Downward trend in Malta Government Stocks persists

MSE Trading Report for week ending November 18, 2016

The MSE Index eliminated last week’s gains, closing the week 1.2 per cent lower at 4,504.469 points. Once again the week was dominated by the volatility in the Malta Government Stocks, as they continued to oscillate between positive and negative territory – with the majority of the twenty-five active issues losing ground, while three closed higher. Total turnover   contracted from €20.2 million to €18.3 million.

The largest declines were registered in the longer dated bonds, with the newly issued 2.1% Malta Government Stock 2039 (i), registering the largest decline of 1.6 per cent, closing the week at €101.90.

In the corporate debt market, a total of 34 issues were active during the week, of which seven gained ground, thirteen lost ground while fourteen closed unchanged.

In the equity market a total of sixteen issues were active of which the majority closed unchanged, San Tumas Shareholdings plc closed higher, while seven lost ground.

Bank of Valletta plc shares declined by 3.2 per cent to close the week at €2.26. The decline was mainly due to the fact that last Monday was the last day for the entitlement to the final net dividend of €0.0554 per share. Total turnover in this equity amounted to €339,683, spread over 58 deals.

In the same industry, HSBC Bank Malta plc shares closed the week unaltered at €1.85, with a total turnover of €116,183, spread over 18 transactions.

Similarly, a single trade of 4,674 shares in Lombard Bank Malta plc failed to veer the equity’s price which closed the week flat at €2.101.

On a negative note, a single trade of 24,000 shares in FIMBank plc managed to drag the price 4.5 per cent lower, to close the week at $0.85.

Elsewhere, a single trade of 144 shares in Mapfre Middlesea plc dragged its price five cents lower, to close the week at €2.20. Meanwhile, Medserv plc shares registered the highest turnover of the week at €399,131, spread over 11 trades, to close the week 0.7 per cent lower at €1.47.

Three trades amounting to 12,014 shares in Plaza Centres plc left no impact on its share price, closing the week at €1.12.

International Hotel Investments plc shares managed to pare losses suffered earlier in the week closing unchanged at €0.65, on a turnover of €25,662, spread across six deals.

Malta International Airport plc shares rebounded from a rough start on Monday, closing the week unchanged at €4.08. Total turnover in this equity amounted €19,949, spread over six trades. In its interim directors’ statement issued on Monday, the company announced that in the first nine months of 2016 it registered an increase in its turnover of 4.5 per cent, to €55.5 million when compared to the same period last year. The company also reported an increase in profits of 10 per cent to €17.1 million over last year. Following a promising start to the winter schedule, the company is optimistic about the remaining period of the year.

RS2 Software plc shares started off the week with a strong start which however eased throughout the week to then close unchanged at €1.55 – total turnover reached €81,114, spread over 10 trades. In the company’s Interim Directors statement issued after close of trading on Friday, the company announced that it has increased its presence through its subsidiaries in the US and the Philippines. Since the start of the year, processing volumes have quadrupled, and the company holds a very healthy sales pipeline across Europe, North and Latin America and in the Middle East, which are being translated into new potential deals. During quarter three, the Group reached agreements with a global third party payment, risk and commerce solutions, to join forces and deliver a one-stop-shop payment processing, securing its first customer in the Thai market, with a global offering. The Group’s revenues remain stable and comparable to 2015. Currency fluctuations have in turn affected the company’s profitability mainly due to global expansion.

In the property sector, Malita Investments plc shareslost ground, to close the week 1.7 per cent lower at €0.85, with a total turnover of €60,493, spread over six trades. On the other hand, the share price of Malta Properties Company plc remained afloat, closing at €0.60 for the third consecutive week.

A single deal of 1,500 shares in MaltaPost plc managed to contract its price by 1.6 per cent, closing the week at €1.85.

On the same note, three transactions amounting to a total turnover of €92,883 in Simonds Farsons Cisk plc pushed its price 0.8 per cent lower to €6.55.

GO plcshares remained unchanged on the week at €3.25, with a total turnover of €11k spread over two deals.