Index succumbs to selling pressure

March 18, 2016

MSE Trading Report for week ending March 18, 2016

The MSE Index registered a 1.8 per cent decline, to close at 4,469.453 points as turnover amounted to €3.1m spread over 19 equities of which 10 declined, four gained ground and five closed unchanged.

RS2 Software plc shares were the most active having witnessed a turnover of €1.16m. The shares oscillated between an all-time high of €4.04 and a low of €3.28, to ultimately close 12.4 per cent lower at €3.55. On the other hand, 6pm Holdings plc shares traded flat at £0.75 on a sole transaction of a scant 800 shares.

In the banking sector,FIMBank plc shares were the only positive performers having advanced by 4.6 per cent as 11 trades of 244,685 shares were struck, to close at $0.68. Last Tuesday, the bank announced its preliminary statement of annual results for the year ended December 31, 2015. The Group reported a loss after tax of $7.1m up from the loss of $45.2m reported in 2014. Net interest income for the year amounted to $29.6m, 4.3 per cent higher from the previous year despite a number of non-recurring operating expenses that pushed operating costs higher.

The board of directors resolved not to recommend a dividend payment but subject to Regulators’ approval, will be recommending a 1 for 25 bonus issue of ordinary shares, to shareholders who are listed on the shareholder register as at April 10, 2016.

HSBC Bank Malta plc shares declined by 2.5 per cent across 25 deals of 114,260 shares, closing €0.04 lower at €1.58. Similarly, Bank of Valletta plc shares fully erased the previous week’s gains having declined by 1.2 per cent as 176,785 shares changed ownership, to close at €2.242.

Lombard Bank Malta plc shares slipped by 1.4 per cent over nine trades of 65,317 shares, closing at €2.15. On a similar note, Mapfre Middlesea plc shares eased 0.4 per cent to €2.49 as two trades of 2,235 shares were negotiated.

GlobalCapital plc shares declined by €0.05 or 11.1 per cent across six transactions of 18,028 shares, closing at €0.40. Conversely, Medserv plc shares appreciated by 3.3 per cent over 23 trades of 104,083 shares, to close at €1.70.

Plaza Centres plc shares edged 1.9 per cent lower as 80,927 shares changed hands, closing at €1.03. During the week, the company announced its financial results for the year ended December 31, 2015. The company reported a profit before tax of €1.6m, in comparison to the €1.5m recorded in 2014. Revenue for the year amounted to €2.4m, up by two per cent from the previous year and a higher earnings per share of €0.0358. The company reports an average occupancy rate of 96 per cent despite the addition of seven new retail outlets throughout the year.

The board of directors have also resolved to recommend the payment of a final net dividend of €0.0286 per share to shareholders on the company’s register as at April 30, 2015, which will be paid on June 3, 2016.

Tigne Mall plc shares declined by €0.101 or 8.78 per cent over nine trades of 89,516 shares, closing at €1.049. Similarly, Malta International Airport plc shares fell by 1.8 per cent as 17 transactions of 19,326 shares were struck, to close €0.08 lower at €4.42.

GO plc shares edged 0.3 per cent higher over 21 deals of 55,205 shares, closing at €3.40. The telecommunications company announced that its forthcoming Annual General Meeting will be held on May 11, 2016.

Simonds Farsons Cisk plc shares recouped by 0.3 per cent as five trades of 5,340 shares were negotiated, to close at €6.02. Conversely, Malita Investments plc shares fell by a further 1.3 per cent over eight deals of 171,800 shares, closing at €0.955.

Malta Properties Company plc shares closed unchanged at €0.575. The equity was active on 16 trades of 157,025 shares. The company announced that the Board of Directors is scheduled to meet on March 21, 2016 to consider and approve the audited financial statements for the financial year ended December 31, 2015 and to consider the recommendation of a final dividend at the Annual General Meeting.

The other non-movers for the week were International Hotel Investments plc, MaltaPost plc and MIDI plc having closed unchanged at €0.65, €1.98 and €0.36 respectively.

In the corporate bond market,29 issues were active of which seven declined, 11 increased and another 11 closed unchanged. Turnover totalled €1.5m. The 6% Pendergardens Developments plc Secured € 2022 Series II was the worst performer having slipped by 3.5 per cent, to close at €110, while the 4.5% Medserv plc Unsecured € 2026 headed the list of gainers with a 0.5 per cent gain and closing at €105.

In the sovereign debt market,turnover totalled €10.5m spread across 24 issues of which four short-term issues fell marginally, while 20 medium and long dated issues gained ground. osed unchanged.