Total Return Index remains relatively flat despite high turnover

MSE Trading Report for week ending October 13, 2017

The MSE Equity Total Return Index increased by a marginal 0.06 per cent to close at 8,988.384 points. A total of 20 issues were active during the week of which eight gained ground, while five closed in the red. Total turnover during the week spiked from €1.41m to €3.54m – with Bank of Valletta plc and Malta International Airport plc generating more than half of the total turnover.

In the banking sector, all the listed banks were active during the week of which the gainers and non-movers tallied to two a-piece. Lombard Bank plc shares registered the weakest performance among its peers as the equity lost 3.5% of its value to close the week at €2.20.

Banking counterpart, Bank of Valletta plc shares followed suit as the equity close the week 0.2% lower at €2.10. A total of 78 transactions managed to generate a total turnover of €963,471.

It’s peer, HSBC Bank Malta plc closed the week flat at the €1.90 price level despite trading 25 times, generating a total turnover of €275,761.

Meanwhile, FIMBank plc traded twice over 10,000 shares to close the week at $0.70.

On Monday, Malta International Airport plc announced that in September there was been a registered increase of more than 89,000 passenger movements over the same month last year, with a total of 626,488 guests welcomed at MIA – translating into an increase of 16.7% over 2016.

The United Kingdom continued to lead Malta International Airport’s list of top markets, contributing 146,160 passenger movements to September’s total traffic, and growing by 4.7 per cent over last year mainly due to an increase in capacity as a result of the Cruise & Fly operation. The equity declined marginally on Monday despite the high turnover, but managed to recover later on during the week, closing 1.1% higher at €4.60. A total turnover of €919,383, was spread over 18 trades.

In the telecommunications sector, GO plc declined further as the equity closed 1.2% lower at €3.472. A total turnover of €44,516 was generated among nine deals.

International Hotel Investment plcshares bounced back into positive territory as the equity advanced by 2.3% to close at €0.614 – nearing an eight-week high. A total of 234,593 shares were exchanged over 17 transactions.

Last Tuesday, MaltaPost plc announced that the board will be meeting on December 11, 2017 to consider and approve the Financial Statements for the year ended September 30, 2017. The equity notched a 4% gain, to close the week at €1.98.

GlobalCapital plcstrongly rebound from last week’s decline as the equity spiked by 15.3% on Friday, closing at €0.37 – as a single deal over a slim volume was executed.

In the oil and gas sector, Medserv plc shares started off the week on a negative note, but managed to recoup its decline on Friday, closing flat at €1.26. Total turnover during the week amounted to €197,693 spread over nine transactions.

Retail conglomerate,PG plc shares headed in negative territory during intra-week trading as the equity declined by 2.7%, managing to recoup this decline on Thursday and Friday, closing the week at the €1.50 price level.

Last Wednesday, Grand Harbour Marina plc announced that an Extraordinary General Meeting will be held on November 14, 2017. A single deal of 2,800 shares managed to drag the price lower by 18.8%, hitting a new 2017 low at €0.726.

RS2 Software plcshares closed in the red for the second consecutive week as the equity declined by 0.7% to close at €1.689 – hitting a 15-week low. A total of five deals were executed between Thursday and Friday’s sessions as 169,452 shares exchanged hands.

Food and beverage firm, Simonds Farsons Cisk plc shares held on to last week’s closing price as the equity closed the week at €9.47. Two trades managed to generate a total turnover of €17,813.

In the property sector, Santumas Shareholdings plc outperformed its peers as the equity gained 2.7% to close at €2.25.

Its peers, Malita Investments plc and Malta Properties Company plc followed suit as the equities closed 1.2% and 0.2% higher at €0.75 and €0.53 respectively.

In the same sector, Plaza Centres plc, MIDI plc and Tigne Mall plc, closed flat at €1.05, €0.31 and €0.96 respectively.

In the Local Sovereign Debt market, longer dated bonds were once again the best performers, particularly those bonds maturing beyond 2028. A total of 23 issues were active of which 15 headed north, while seven lost ground. For the second consecutive week the 2.4% MGS 2041 (I) R was among the best performers during the week as the bond price appreciated by 1.6% to close at €105.20.

In the local corporate debt front, a total of 35 issues were active of which 16 closed higher, while eight declined. The 3.75% Premier Capital plc Unsecured € 2026 recouped the majority of its three-week decline as the bond price increased by 2.5% to close at €102.98.

Last Tuesday, the board of directors of 6pm Holdings plc approved the Company’s audited Financial Statements for the financial year ended December 31, 2016. The Group reported a loss after tax of GBP12.66m compared to the GBP4.76m reported in the financial year of 2015. Total revenue reported during 2016 stood at GBP7.12m, compared to the re-stated €8.36m in 2015. The net liabilities as at 2016 stood at GBP13.8m.

The board has determined that the results in respect of the financial years ended December 31, 2014 and December 31, 2015 were materially misstated, resulting principally from a failure of internal controls and management in the Group operations. 

The restated financial statements show that during the financial years of 2014 and 2015, revenue as well as profit/ (loss) before tax have significantly declined. The restated profit/ (loss) before tax during both reporting periods stood at negative GBP0.1m and negative GBP3.2m, from the previous profit before tax of GBP0.9m and GBP1.6m respectively. The restated net assets/(liabilities) during the financial year ending December 31, 2015 show a net liabilities of GBP0.5million, from the previous reported net assets of GBP15.8million.

The company stated that, the failures resulting in these restatements are deemed to have originated primarily from erroneous and inconsistent application of accounting standards, coupled with the revaluation of some material transactions and revaluations conducted in the financial periods which have been restated.

Furthermore, the company stated that after due consideration of the Group’s and the Company’s profitability, statement of financial position, capital adequacy, solvency and guarantee of support from Idox Group, the directors are satisfied that at the time of approval of the financial statements, the Group and Company have adequate access to resources to continue to operate as a going concern for the foreseeable future.