MSE Equity Total Return Index up by 1.7%

MSE Trading Report for week ending September 29, 2017

Equity Total Return Index strongly rebounded from last week’s decline as the index rallied by 1.7% at 9,015.856 points. Malta International Airport plc, HSBC Bank Malta plc andInternational Hotel Investments plc were the major contributors towards this gain. A total of 17 equities were active during the week of which eight headed north, while five lost ground. Total turnover was similar to that of last week, as 161 deals generated a total turnover of €1.33million.

In the banking industry, HSBC Bank Malta plc shares registered the only gain among its peers, as the equity gained by 1.8% to close at €1.935. Total turnover amounted to €109,672, spread over 17 deals.

Its counterpart, Bank of Valletta plc shares lost ground by one per cent to close at €2.07. Total turnover neared €300,000, spread over 44 transactions.

Their peers, FIMBank plc and Lombard Bank plc also closed in the red, having lost 2.1% and 0.7% of their value, closing at $0.71 and €2.20 respectively – with the former trading once on slim volume.

On Wednesday, the board of Directors of Simonds Farsons Cisk plc presented the interim report for the six months ended July 31, 2017.

The Group’s turnover exceeded €49 million, an increase of 7.5% over last year. Operating profit increased by €387,000, whilst profit after tax for the period from continuing operations, at €5.7million, exceeded last year’s figure by 3.9%. Net profit margins have been compressed by extremely competitive market conditions and a very tight labour market.

Earnings per share increased by 4.3% to €0.193 for the mentioned period. The board of directors is recommending a net interim dividend of €1 million (2016: €1 million) to the ordinary shareholders who will be on the Register of Members of the company as at October 4, 2017. The interim dividend will be paid out of tax-exempt profits and is equivalent to €0.0333 (2016: €0.0333) per share.

During the week, SFC traded eight times, generating a total turnover of €232,829. The equity reached a fresh all-time high intra-week at €9.501 to close at €9.50.

Similarly, retail conglomerate PG plc spiked by 6.4% to close at a fresh all-time high at €1.50, as total turnover surpassed the €126,000 mark, over 21 trades.

International Hotel Investments plcshares surged by 6.1% to close at €0.605. A total of seven trades generated a total turnover of €11,425.

In the telecommunications sector, GO plc shares appreciated 2.3% in value to close the week at €3.59. A total of 10,531 shares were dealt over five trades.

Malta International Airport plcshares reached a fresh 18-month high as the equity touched the €4.46 price level, on a total turnover of €223,571, spread over 22 transactions.

Insurance firm, Mapfre Middlesea plc reached a six-week high as the equity closed the week, 3.1% higher at €1.939. A total of 6,805 shares exchanged hands over six deals.

Elsewhere, Maltapost plc and RS2 Software plc shares closed the week flat at €1.98 and €1.735 respectively.

Property firm, Malta Properties Company plc outperformed its peers as the equity gained 3.2%. On the other hand, Tigne Mall plc shares, registered the weakest performance among its peers, as the equity lost 1.8% of its value.

In the same sector, Malita Investments plc shares followed suit as the equity headed south by 1.1% to close the week at €0.741.

Meanwhile, MIDI plc and Plaza Centres plc shares traded on a slim volume over a single deal, to close flat at €0.31 and €1.05 respectively.

In the local corporate debt market a total of 38 issues were active during the week, 11 headed north, while 14 closed in negative territory.  The 6% AX Investments plc € 2024 extended its price gain as the bond price advanced by 2.5% to close at €114.

Further declines were recorded withinLocal Sovereign Debt market, as out of the 22 issues, as17 closed in the red, while five gained ground. Bonds holding a maturity greater than 10 years registered the largest declines ranging from 0.1% to 1.6%, with the exception of four which gained up to 1%.

On Thursday, the allocation for the recent 3% 62+ Malta Government Savings Bond 2022 was announced by the Treasury. A total of €107.20 million worth of applications were received, out of which €70 million were allocated -€50million together with the over-allotment option of €20 million.

Applications up to and including €5,000 in nominal terms have been met in full, while those above €5,000 in nominal terms shall receive a minimum of €5,000 nominal per applicant plus an additional 22% of the remaining unallocated balance per applicant, rounded up to the nearest €100.

The Treasury announced that another opportunity will arise for the applicants of the 62+ Malta Government Savings Bond whose application lodged in September exceeded the amount of €5,000.  These applicants may participate on a voluntary basis in a new issuance scheduled for October 2017.  In the coming days, these applicants shall receive a letter asking them to make a choice whereby instead of receiving a full refund of the amounts not allocated from the first issuance, opt to use these unallocated funds which are currently held at the Treasury, to participate in the second issuance of the 62+ Malta Government Savings Bond. If the applicants of the first issuance whose applications were not accepted in full choose not to participate in the second issuance, they will be refunded for the amount not allocated. Only applicants who applied for more than €5,000 in the first issuance and new eligible applicants who did not participate in the September 2017 issuance can apply. The same terms and conditions of the first issuance will apply.