Sovereign debt issues rebound marginally
MSE Trading Report for week ending March 24, 2017
For the third week running, the MSE Index closed in the red. The decline registered during the week amounted to 0.16 per cent, as the index closed at 4,707.432 points – the lowest in seven weeks. In total, 13 equities were active during the week, of which gainers and non-movers tallied at four each while the remaining five lost ground. Total turnover stood at €1.3m.
Almost all sovereign debt issues recouped some of the recently lost ground as out of 22 active issues, 20 headed north while only two declined. The biggest gains were those experienced by the more volatile long dated issues such as the 2.2% MGS 2035. The stock settled at €100.33, outperforming its peers by registering a gain of 1.96 per cent in the process.
The overall picture was also positive in the corporate debt market. A total of 37 issues were active of which 14 gained, 10 declined and 13 remained unchanged. Total trading in corporate bond issues amounted to almost €1.9m. In line with this positive movement was the performance of the 5.8% International Hotel Investments plc €2023, having gained 3 per cent, to close at €110.
On the equity front, Lombard Bank Malta plc and FIMBank plc were in the headlines. The former settled at a fresh 15 month high of €2.45 while the latter slumped to a 5 week low of $0.85. The outlined closing prices of these two equities imply a 2.1 per cent increase for Lombard Bank Malta plc shares and a 4.5 per cent decline for FIMBank plc shares, week-on-week. Total turnover amounted to just under €165,000 for Lombard’s shares and €131,500 for FIMBank plc’s equity.
Bank of Valletta plc shares depreciated marginally, as 49 transactions led to a 0.5 per cent decline in the price for the second consecutive week. The equity closed at €2.19 on the highest turnover of the week worth €337,000.
HSBC Bank Malta plc shares recouped over a third of last week’s losses as the equity appreciated by 0.5 per cent, to close at €2.06. Total turnover exceeded the €184,600 mark across 19 deals.
Plaza Centres plcshares performed negatively once again as these registered a 1.9 per cent fall in price, to settle at the €1.05 price tag – the lowest in 33 weeks. The equity featured in two trades of 6,000 shares in total.
GlobalCapital plcshares registered a 2.9 per cent slump over mere trading volumes. The price at the end of the week’s last trading session stood at €0.34. This decline resulted in fresh 62 week low for the equity.
GO plc’s equity traded 11 times, as a total of 18,703 shares exchanged hands. The closing price read €3.52 – a 0.6 per cent increase from last week’s price.
On Thursday, the company announced that the forthcoming Annual General Meeting of the Company will be held on the May3, 2017.
The equities of Malta International Airport plc and Malita Investments plc experienced contrasting fortunes. The former equity closed in the black by 0.6 per cent, to close at €4.15, while the latter lost 0.7 per cent, to close at €0.755 – the lowest closing price in 25 months. Total turnover stood at €98,000 and €1,500 respectively.
Other active non-moving equities were International Hotel Investments plc (IHI), MIDI plc, RS2 Software plc and Malta Properties Company plc. The closing prices of these equities at the end of the week read: €0.64, €0.33, €1.64 and €0.52 respectively.IHI generated the second largest turnover for the week on only four transactions.
Despite the lack of movement in prices, both MIDI plc and Malta Properties Company plc, made important announcements during the week.
On Thursday, MIDI plc announced an Outline Development Permit for Manoel Island, clearly setting out the parameters of the development and specifies the extent of development permitted including a mix of low rise residential and commercial development, marina, restoration, dredging, land reclamation and infrastructural obligations. The Company is fully committed to the restoration and rehabilitation of the heritage buildings on Manoel Island and the extensive provision of space for leisure and heritage walks and events.
On the other hand, on Tuesday, the board of Directors of Malta Properties Company plc approved the financial statements for the financial year ended December31,2016. The board of Directors recommended to the annual general meeting that no dividend will be paid – which will be held on May 25, 2017.
The Group delivered a solid financial performance in 2016. During the financial year under review, the Group’sprofit before tax increased by €2.03 million over that of the previous year and amounted to €3.45 million (2015: €1.42 million)– predominantly reflecting an adjustment of €1.7 million on fair valuation of property. Revenues from rental income increased by two per centand stood at €3.24 million (2015: €3.17 million). Revenues are expected to increase gradually in line with inflation. It was also stated that the long term leases in place on the various properties secure the Group’s revenues at these levels for the foreseeable future. In 2016, administrative expenses amounted to €0.71 million (2015: €0.54 million). This increase was in line with expectations as this was MPC’s first full year of independent operations and as the Group is undertaking its planned redevelopment projects.