MSE Index eases lower after seven week positive streak
MSE Trading Report for week ending January 20, 2017
The MSE Index experienced the first negative week in 2017 after seven weeks of gains, registering a 0.23 per cent decline, to close the week at 4,679.298 points. This performance mirrored the performance of the sovereign debt market. On the contrary, the corporate debt market registered overall gains.
Trading in the equity market was spread across 16 equities of which eight closed in the red while gainer and non-movers tallied at four a piece. Total turnover was slightly higher than last week at €1.6m.
Bank of Valletta plc was the only banking equity which registered a gain of nearly one per cent pushing the closing price to the €2.17 level. Turnover in this equity accounted for almost 36 per cent of total weekly turnover in the market and was spread across 112 deals.
Telecommunications company, GO plc, also had a positive week as its share price appreciated by 1.5 per cent, to close at a fresh eight month high of €3.35 as 18,212 shares exchanged ownership across seven transactions.
Malta Properties Company plcheaded the list of gainers for the week as its shares rallied by 5.2 per cent. This increase was triggered by 14 deals worth €38,500.
Another company, whose positive performance also contributed towards a smaller decline in the MSE Index, was Simonds Farsons Cisk plc. Nine transactions worth €68,200 pushed the equity’s price up by 0.6 per cent as it closed at €7.295. The intra-week high of €7.30 reached on Tuesday was a fresh all-time high for this equity.
HSBC Bank Malta plc shares curbed all of last week’s gains as a slump of 1.5 per cent dragged the price down to €1.951. The equity traded 19 times for a total value of €158,200.
A single trade of 2,128 shares resulted in a decline in Lombard Bank Malta plc’s share price as it closed the week at €2.275. This loss wiped off all of last week’s registered gains.
Another single deal of 5,987 shares, caused a sharp fall in value in MIDI plc’s. The closing price read €0.33 which implies a depreciation of 5.7 per cent over the week. Similarly, Tigne Mall plc shares traded in the red resulting in a 5.1 per cent sharp decline, closing at €1.12. A total of two trades were registered on low volumes.
During the week, RS2 Software plc announced that it has concluded three major agreements for its managed services arm, RS2 Smart Processing Ltd. In Europe, one contract has been signed with a global leader and one of the largest acquirers in payment processing and technology A second contract has been signed with a Latin American company, while a third contract has been signed with a Canadian company – the names of which may be communicated at a future time. The benefits of these agreements will materialize in the later part of 2017. The equity traded 24 times for a total value of €214,200, falling 0.6 per cent in value, having closed at €1.799.
FIMBank plctraded on three occasions yet a total of 12,120 traded shares failed to veer the equity’s price from last week’s level of $0.90. The company announced that the board of directors is scheduled to meet on March 14, 2017 to consider and approve the Group’s and the Bank’s Audited Accounts for the financial year ended December 31, 2016; and consider the declaration of a dividend, if any, to be recommended to the Annual General Meeting of shareholders.
On Thursday, 6PM Holdings plc announced that the minimum level of acceptance relating to the conditional voluntary takeover offer by Idox plc has been satisfied – being that of 90 per cent. A further company announcement providing a final update on the percentage of acceptances from Company shareholders in respect of the offer will be made upon the expiration of the Acceptance Period as set forth in the Offer Document.
Although trading on similar volumes and both experiencing downward movements, shares of Medserv plc and MaltaPost plc suffered varying declines. Medserv plc’s share price fell by 3.6 per cent over seven transactions worth €179,000, to close at €1.60, while MaltaPost plc’s equity price declined by 0.5 per cent to close off at €2.05. Seven transactions were also registered for this equity as turnover surpassed the €160,000 mark.
A total of 1,200 Mapfre Middlesea plc shares exchanged ownership over two deals during the week, as the €2.23 closing price led to a 0.9 per cent decline from last week’s price level.
Trading in the shares of International Hotel Investments plc, Malta International Airport plc and Malita Investments plc failed to have any impact on their respective prices.
On thesovereigndebt fronttotal turnover was just short of€5 million,as18 of the 24 tradedissues closed in the redwhile four gained in value.The 4.5% MGS 2028 (II) registered the biggest drop for the week, falling by1.14 per cent to close at€132.51.
In the corporate debt market a total of 28 issues were active during the week with 13issues appreciating, eight declining and another seven closing flat. The 6% Island Hotels Group Holdings plcregistered the biggest gain as a 1.86 per cent increase pushed the price up to €109. Meanwhile, the 6% Pendergardens Developments plc Secured € 2022 Series II lost2.7 per cent to end the week at €110. Total turnover in the corporate debt market for the week exceeded€2.16million.