MSE Index down 0.89 per cent in April

MSE Trading Report for week ending April 28, 2017

The MSE Index closed in the red for the second consecutive week as it declined by a further 0.6 per cent to 4,676.26 points. The MSE index fell by 0.89 per cent in April. During the week 16 equities were active, three of which closed in positive territory, 11 headed south and two remained unchanged.  In total there were 167 trades that tallied to a turnover of just under €1.3 million.

Despite reporting positive interim results Bank of Valletta plc closed unchanged week-on-week but gained 2.27 per cent in April, in anticipation of these results.  The equity closed at €2.25 but yesterday managed to reach an intra-day high of €2.27. 

The Bank of Valletta Group has announced a profit before tax of €74.0 million for the six months ended on 31 March 2017, an increase of 8% over the €68.5 million reported for the same period last year. This represents a return on equity before tax (ROE) of 20% p.a., which is equivalent to the ROE for March 2016. Earnings per share amount to 12.1 cents (March 2016: 10.6 cents).

An interim dividend of €0.0450 gross per share (€0.0293 net of tax) has been declared by the Board of Directors, representing an increase of 24 per cent over the 3.63 cents declared last year, as adjusted for the bonus share issue last January 2017 – payable to shareholders on the company’s share registrar as at May 11, 2017

The Bank reported that, net interest income amounted to €72.7 million, a decrease of 3 per cent over March 2016.Total operating income, comprising interest margin and non-interest income, amounted to €123.2 million, compared to €134.5 million for March 2016. This decrease is wholly attributable to lower price gains on investment and trading securities.

The Group recorded a net reversal of impairment losses amounting to €5.3 million (March 2016: net charge of €8.1 million), and a positive result of €8.875 million from equity-accounted investees, which positively impacted the bottom line of the company, as profit before tax increased from €68.483 million to €74.030 million.  The Group Core Equity Tier 1 ratio is 13.1 per cent, up from 12.8 per cent in September 2016.

In the same sector, HSBC Bank Malta plc’s shares declined by a marginal 0.5 per cent to close the week at €2.05 –a five week low – spread across 20 trades worth €76,331.

The equities of Lombard Bank Malta plc continued to head south by a minimal 0.4 per cent. This was spread across six deals worth €67,960.  Lombard Bank Malta plc announced that following the Bank’s Annual General Meeting, five of the nine resolutions put forward for consideration have been approved –  mainly related to ordinary business items on the agenda. As per initial announcement dated April 6 2017, items on the agenda with respect to special business, were not carried, except for resolution nine, which was also approved. Resolution nine related to the disclosure of price sensitive information to a prospective bona fide offeror(s) and Cyprus Popular Bank Public Co. Ltd in the disposal of substantial shareholding in Lombard. Resolution six which was related to the acquisition of own shares; resolution seven, based on restriction/withdrawal of statutory pre-emption rights, and resolution eight, which gave the authority to issues shares, were not approved.

In the technological industry, further selling pressure was witnessed in RS2 Software plc,drifting the equity’s price down by 5.1 per cent to €1.50 – a fresh six month low.  On the other hand, GO plc share price appreciated by 1.1 per centto close the week at €3.489 over six deals tallying to €76,505.

Simonds Farsons Cisk plc and Tigne Mall plc closed in positive territory as these two shares closed 0.5 and 3.9 per cent higher respectively.  In turn, the former equity traded four times to reach a market value of €16,858 while the latter traded once on a thin volume of 1,200 shares.

International Hotel Investments plcissued the Group’s financial statements for the year 2016.  The Group registered a loss before tax of €6.763 million, compared to a loss of €349,000 registered in 2015. Revenue for the period under review amounted to €157.9 million, a rise of just under 18 per cent from 2016. Loss per share remained at €0.01.

The Company also announces its intention to issue a 3 per cent bonus share in favour of the shareholders appearing on the register of members of the Company on the Official List of the Malta Stock Exchange as at close of business on 30 June 2017 (the “Eligible Shareholders”), subject to obtaining the necessary approvals. The bonus share distribution is to be made out of capital reserves of the Company, based on the audited financial statements. The bonus shares are to be allotted to all Eligible Shareholders on a pro rata basis and further information on the bonus share issue will be made available at the opportune time. Week-on-week the equity experienced a marginal loss of 0.31 per cent to close at €0.64.

Malta Properties Company plc and Medserv plc alsoexperienced a similar fate as both equities closed 0.6 and 4.3 per cent lower to close the week at €0.517 and €1.45 respectively.

Also ending the week in negative territory were Malita Investments plc and Malta International Airport plc which closed 1.3 and one per cent lower on 105,000 shares and 35,567 shares respectively.

Following suit was Plaza Centres plc whose   share price closed at €1.06, 3.64 per cent lower. €1.10.

The two equities that lost most ground were GlobalCapital plc and MIDI plc as the former experienced the largest loss for the week of 11.8 per cent while the property company closed six per cent lower.

In the corporate debt market, 32 issues were active   reaching a total market turnover of €1.4 million.  Overall it was a positive week, as 13 of the active issues headed north, eight closed in the red while the rest closed unchanged.  The 5.8 per cent International Hotel Investments plc 2021experienced the sharpest fall as it declined by 3.7 per cent, to close at €106.90. The, 4 per cent International Hotel Investments plc Unsecured € 2026 generated the best performance as the price increased by 2  per cent to close at €102 – as five trades generated a total turnover of €30,455.

On the contrary, theSovereign debt market closed in negative territory, as out of 25 active issues 21 declined, three experienced a marginal gain while one remained unchanged. The percentage losses ranged from 0.01 to 1.6 per cent. The negative movements were registered in longer dated bonds that have a maturity date after than 2029.  The most traded stock wasthe 2.4 per cent MGS 2041 (I)as the bond nearly reached €5.6 million from a total turnover of €11.36 million.