Equity index marginally lower
MSE Trading Report for week endingJuly282017
The MSE index reversed last week’s gain having closed 0.378 per cent lower at 4,712.325 points. Large capitalised equities were the major contributors towards this decline with; Bank of Valletta plc, GO plc and International Hotel Investments plc losing ground. A total of 18 equities were active during the week of which nine lost ground, eight headed north, while one closed flat. Despite the decline in the index, total turnover more than doubled having increased from €982,042 to €2.44m.
In the banking industry, Bank of Valletta plc closed the week in the red for the second consecutive week as it lost 0.5 per cent of its value to close the week at €2.15.
Last Thursday, Bank of Valletta plc held an Extraordinary General Meeting, during which the Bank's shareholders approved amendments to its Memorandum and Articles of Association and an increase in the share capital of the company from €500 million to €1 billion, subject toregulatory approval. The Chairman announced that the bank intends to offer to existing shareholders a Rights Issue of €150m over a period of 18 months, and provide the opportunity to existing shareholders to acquire new shares in the Bank. The issue will only be opened to the general public if any of the new shares are not taken up by the existing shareholders.
On the other hand, HSBC Bank Malta plc advanced by 0.59 per cent as the equity closed the week at €2.062. The equity hit a two-week high intra-week of €2.08. The bank has previously announced that the Board of Directors are expected to meet next Monday in order to consider and approve the Group’s and the Bank’s Interim Accounts for the half year ending June 30, 2017. The board will also consider, and if thought appropriate, declare an interim dividend.
FIMBank plccompletely erased last week’s positive performance as the bank registered the weakest performance among its peers, as the equity dipped by 6.6 per cent to close at $0.71 – hitting its lowest levels since March 2016.
On a more positive note, Lombard Bank plc registered the strongest performance among its counterparts as the equity advanced by 2.1 per cent at €2.39– as four trades saw 6,000 shares exchange hands.
In the telecommunications sector, GO plc shares moved away from its 17-month high as the equity closed 0.25 per cent lower at €3.59. A total turnover of €171,548 was generated over 17 trades.
Last Thursday, the company announced that the Board of Directors is scheduled to meet on Friday August 4, 2017 to discuss the Group interim unaudited financial statements for the six-month period ended June 30, 2017.
Similarly, three trades amounting to 16,889 shares in International Hotel Investments plc on Friday shaved 3.2 per cent of the equity’s price, closing at €0.60.
Last Wednesday’s Board of Directors meeting, Malta International Airport plc the Group’s Interim Financial Statements covering the six months ended June 30, 2017, were approved. Passenger movements for the first half of the year registered an increase of 20.3 per cent as traffic registered new record figures on each month. This result was achieved following a 19.3 per cent growth in seat capacity whereas seat load factor improved by 0.4 percentage points to reach an overall 80.4 per cent.
The total revenue for the period from January to June increased by 16.7 per cent from Euro 31.4 million in 2016 to Euro 36.7million in 2017. The increase reflects the growth in passenger movement as well as an increase in non-aviation revenue. Turnover from the Airport segment increased by 19.1 per cent to €25.9million, whilst that from the Retail and Property segment increased by 10.7 per cent to €10.5million.
The Directors approved a net interim dividend of €0.03 per share on all shares settled as at close of business on Wednesday August 23, 2017 and payable by not later than Friday September 22, 2017.
Turnover during the week reached a staggering €1.45m executed on 28 deals – as the price rallied by 2.4 per cent to close at €4.20.
Maltapost plcrecovered from a weekly low of €1.98 closing the week 0.5 per cent lower at €2.019 as three trades saw 3,066 shares exchange hands.
Last Monday, Mapfre Middlesea plc announced that on July 21, the Board of Directors considered and approved the unaudited financial statements of the Group for the financial half year ended June 30, 2017. The group’s profit before tax for the first 6 months amounted to €7.02million, compared to €5.67 million registered during the comparative period last year. The increase in profit was derived from improved non-life business and long term business results when compared to the previous year.
The company’s non-life business has registered a marked recovery in results as actions taken by management to address the price deficiency in Motor line business are showing the desired progress in returning this line of business to being profitable again. The improvement in the technical results was augmented by an increase in investment income, derived particularly from the property investment held by the Company.
Mapfre MSV Life continues to have stable results reflecting the annual management charge on assets under management introduced at the beginning of the previous year, which provides stability to the results, shielding them from the impact of fluctuations in the financial markets.
Furthermore, in line with Company policy, the Board of Directors did not propose the payment of an interim dividend. The equity traded all week with a total of 19 trades, generating a turnover of €135,905, to close 1.6 per cent higher at €1.90.
RS2 Software plcshares remained relatively unchanged as the equity closed 0.3 per cent lower at €1.845. A total turnover of €34,278 was generated among eight trades. Meanwhile, four trades amounting to 4,743 shares in Simonds Farsons Cisk plc helped the equity reach an all-time high of €7.76.
Grand Harbour Marina plc shares registered the weakest performance this week as the equity plunged by 8.4 per cent to close at €0.82. On a same note, Medserv plc also closed the week in negative territory as the equity closed the week two per cent lower at €1.25.
In the property sector, Malta Properties Company plc was the weakest performer among its property peers as the equity closed 3.4 per cent in the red to close the week at €0.51. On the other hand, Malita Investments plc closed 6.3 per cent in the black to close the week at €0.765.
Last Thursday, the company announced that the Board of Directors is scheduled to meet on Tuesday August 8, 2017 to consider and approve the Company’s Interim Financial Statements for the six months ended June 30, 2017 and consider the payment of an interim dividend.
On the same note, MIDI plc and Tigne Mall plc also closed the week in positive territory, to close 1.9 per cent and one per cent higher, at €0.32 and €0.97 respectively.
Elsewhere, PG plc shares clinched to their all-time high at 1.34- as four deals generated a slim turnover.
In the corporate debt market, a total of 36 issues were active during the week of which 12 headed south, 10 advanced, while 14 closed flat.
In the sovereign debt front, a total of 26 issues were active of which the absolute majority of the active issues traded amounting to 20 headed south, while six closed higher. Sovereign bonds having a maturity greater than 15 years experienced the largest declines ranging from 0.43 to 1.85 per cent.