Major banks drag index lower

MSE Trading Report for week endingSeptember 01,2017

The MSE Equity Total Return Index continued to add to last week’s negative performance, closing 0.51 per cent lower at 8,936.276 points – as the performance of the major banks left a negative impact on the index. A total of 17 equities were active during the week of which five gained ground, 9 closed in the red, while three remained flat. Total turnover during the week declined from €1.23m to €944,730.

In the banking industry, both HSBC Bank Malta plc and Bank of Valletta plc shares closed in negative territory. HSBC shares closed the week one per cent lower at €1.92 – as 12 trades generated a total turnover of €49,639.

Meanwhile, Bank of Valletta plc shares followed suit as the equity declined by 1.1 per cent to close the week at €2.097, having recovered from a weekly low of €2.05. A total of 162,766 shares exchanged hands over 62 transactions.

In the same sector, FIMBank plc registered a single trade of 6,000 shares on Thursday to close 1.3 per cent higher at $0.76.

GO plcshares swayed between a low €3.506 and a high of €3.57, at which it closed having decline by 0.8 per cent during the week. A total turnover of €80,460 was generated between seven trades.

Similarly, International Hotel Investments plc closed lower as the equity lost 0.8 per cent of its value to close at €0.61. A total turnover of €12,076 was registered over five trades.

On the contrary, Malta International Airport plc shares closed in the black as its share price increased by 0.72 per cent at €4.20 – despite hitting a six-week low intra-week at €4.16. A total of 16,850 shares changed hands over 11 transactions.

A single deal of 3,000 shares in Mapfre Middlesea plc saw the equity hit a three-week low to close at €1.88.

Despite trading seven times during the week, generating a turnover of €34,463, RS2 Software plc shares failed to veer closing at €1.78.

Last Wednesday, the Board of Directors of GlobalCapital plc considered and approved the half yearly report for the six months ended June 30, 2017.

The company registered a profit before taxation on a consolidated basis for the six months ended June 30, 2017 totalling €2,378,023 compared to the prior period equivalent to €1,878,526.

GlobalCapital Life Insurance Limited contribution towards the consolidated profit before taxation amounted to €1,260,630 compared to a profit of €696,352 for the same period in 2016. The continued efforts to registering sustained levels of new business resulted in an increase in the value of in-force business for the period under review of €1,207,692 (June 2016: €1,244,615).

During the period under review, the GlobalCapital Financial Management Limited registered an improved level of activity and likewise an increase in operational costs. This together with enhancements to the company's provisioning policy led to a profit before taxation to €131,607 compared to €7,169 for the period ended June 2016.

The equity spiked by 32.9 per cent to €0.40. The equity traded twice during the week over a slim volume of 4,090 shares.

Simonds Farsons Cisk plc shares touched the eight euro mark – reaching a fresh all-time high. A total of 715 shares changed hands between four deals.

On the same note, PG plc shares climbed back to the €1.40 mark and remained stable all through the week as a total of seven deals managed to generate a turnover of €54,551.

On Monday, the board of Directors of MIDI plc approved the half-yearly financial report covering the six months ended June 30, 2017. The company registered a loss before tax amounting to €1.5m compared to the €1.1m registered in the same period under review last year.

The results are in line with the Company’s projections and are a consequence of having practically no apartments which it could handover to their respective owners. Q2 apartments are expected to be delivered during 2018 and hence profits registered from these sales will be accounted for in the Company’s 2018 financial statements. The company is projecting an overall loss for 2017 financial year.

As a result, revenue during the period under review decreased by 52.3 per cent from the €3.91m. Earnings per share decreased from negative 0.004 in the first six months of 2016 to negative 0.0078 in the same period last year.

Despite trading during the week the equity failed to register any price change closing flat at €0.31.

Tigne Mall plcand Plaza Centre plc shares closed the week in the red as both equities declined by 0.2 and 3.5 per cent, to close at €0.975 and €1.04 respectively.

Property counterpart, Malta Property Company plc followed suit as it closed 4.3 per cent lower at €0.51 – as four deals saw 25,023 shares changing hands.

Elsewhere, Santumas Shareholdings plc shares moved away from its all-time high to close the week at €2.141, having decreased by a marginal 0.5 per cent.

On Wednesday, the board of directors of Grand Harbour Marina plc approved the half-yearly report of the Company for the six months ended June 30, 2017.

The combined revenues of Grand Harbour Marina plc and IC Cesme fell slightly from €3.1million in the first six months of 2016 to €2.9million in the corresponding period this year.

Group profit before tax for the period ended June 30, 2017 which includes the 45 per cent share of the profits of IC Cesme, amounted to €0.23 million, compared to the €0.35million reported in the same period last year.

The equity was inactive during the week.

In the sovereign debt front, a total of 27 issues were active, as 15 headed south, ten closed higher, while two closed flat. The 2.1% MGS 2039 (I) r and 3% MGS 2040 (I) recouped last week’s lost ground as both advanced by 0.6 and 0.9 per cent to close at €100.09 and €115.66.

On Monday, applications for the 62+ Malta Government Savings Bond will be received by authorised intermediaries. The bonds will be offered at a coupon of 3% per annum and will be issued at the price of €100 per bond and mature on September 13, 2022.

Eligible investors can apply for a maximum amount of €10,000 and for a minimum of €500 in multiples of €100 thereafter. The offer will close on Wednesday September 6, 2017 or earlier at the discretion of the issuer.

In the corporate debt market, a total of 33 issues were active during the week of which, 11 headed north, eight closed in negative territory, while 14 remained unchanged.