MSE Index recoups 0.9%

MSE Trading Report for week ending March 24, 2016

The Malta Stock Exchange (MSE) Index partially erased last week’s negative performance having advanced by 0.87 per cent, to close this four day trading week at 4,508.544 points. Activity was spread across 16 equities of which seven gained ground, six declined and three closed unchanged. Turnover amounted to €1.4m.

Positive sentiment prevailed in the banking sector, as three out of four banking equities registered an increase in value while one closed unchanged. FIMBank plc shares headed the list of gainers having rallied by 6.6 per cent as ten deals of 147,983 shares were struck, closing $0.045 higher at $0.725.

Lombard Bank Malta plc (Lombard) shares advanced by €0.10 or 4.7 per cent across 13 trades of 200,023 shares, to close at €2.25 on the highest turnover for the week worth €430.8k. Last Tuesday, the bank announced that the special administrator of Cyprus Popular Bank Public Co Ltd had approved the disposal of its fully paid up ordinary shares held in Lombard.

Bank of Valletta plc (BOV) shares gained 1.2 per cent as 88,637 shares changed ownership over 31 deals, closing at its weekly high of €2.269. Meanwhile, HSBC Bank Malta plc shares closed unchanged at €1.58 – active on 10 transactions of 14,794 shares.

On a negative note, Medserv plc shares were the worst performers having declined by 2.9 per cent across 11 trades of 77,730 shares, closing €0.05 lower at €1.65. In its financial statements for the year ended December 31, 2015, the Group reported a profit before tax of €6m, compared to €3.1m recorded the previous year. The positive performance for 2015 was a result of strong business flow conducted out of Malta in support of the ongoing operations offshore Libya, the performance of Medserv (Cyprus) Limited and the continued growth in engineering and maintenance services. Revenue for the year amounted to €42.2m – up by 31 per cent from the previous year. The significant revenue growth is attributable to the increase in the volume and portfolio of logistics services being provided to the oil majors and their sub-contractors throughout their drilling programmes. Earnings per share stood at €0.092. Moreover, no final dividend was recommended due to the substantial expansion programme.

The share price of Malta Properties Company plc (MPC) slipped by 2.1 per cent over 15 trades of 112,817 shares, to close at €0.563. The Group reported a profit before tax of €1.4m for the financial year ended December 31, 2015, compared to the €886k recorded in the previous year. However, due to a tax credit of €447k, the profit after tax rose to €1.9m. Rental income for the year rose by 6.8 per cent to €3.2m. Administrative expenses also increased as a consequence of the company's independent operation of the Group and its listing on the Malta Stock Exchange. The Board of Directors recommended to the annual general meeting that no dividend will be paid. 2015 marked a new era for MPC as the company was successfully spun-off from its former parent GO plc and listed as a separate entity on the MSE.

In another announcement, the company reported that it is currently discussing and exploring proposals for a potential mixed-use development which would involve the company’s St. George's Exchange site in St Julians.

On the other hand, GO plc shares appreciated by €0.05 or 1.5 per cent as four deals of 7,400 shares were executed, closing at €3.45.

Meanwhile, Plaza Centres plc shares edged 1.5 per cent higher over three deals of 12,203 shares, to close at €1.045. In the same sector, Tigne Mall plc announced that the Board of Directors of the Company is scheduled to meet on April 15, 2016 to consider and approve the Company's Audited Financial Statements for the financial year ended December 31, 2015 and declare or otherwise the payment of a dividend to the Company's Annual General Meeting. The equity was not active this week.

In the I.T. sector, RS2 Software plc shares partially erased last week’s 12.4 per cent loss, having recovered by 4.2 per cent across 32 trades of 61,960 shares, closing €0.15 higher at €3.70. Similarly, 6pm Holdings plc shares rose by 2.7 per cent as two trades of 25,000 shares were struck on Monday, to close at £0.77.

Conversely, Simonds Farsons Cisk plc shares declined by a marginal 0.3 per cent over two deals of 1,167 shares executed at €6. Likewise, Malita Investments plc shares slipped by 0.5 per cent on Wednesday as two transactions of 10,400 shares were negotiated at €0.95, as the equity turned ex-dividend.

Malta International Airport plc shares eased 0.2 per cent to €4.41 as 5,120 shares changed hands.

International Hotel Investments plc shares fell by 1.5 per cent across 16 deals of 123,550 shares, closing at €0.64. Meanwhile, MIDI plc shares closed unchanged at €0.36 as eight transactions of 193,250 shares were executed.

The other non-mover this week was GlobalCapital plc shares having closed unchanged at €0.40 as four trades of 3,450 shares were negotiated. During the week, the company announced that with reference to the Rights Issue announced on March 4, 2016, the listing authority confirmed to Investar plc, formerly EIP plc, that the exemption from the requirement to make a mandatory bid applies to the taking up by Investar, in the exercise of its rights of pre-emption, of any New Ordinary Shares not subscribed for by Eligible Shareholders under their pre-emptive rights, prior to any unallocated New Ordinary Shares being offered to financial intermediaries in an intermediaries offer.

In the corporate bond market turnover amounted to €669,541 spread across 29 issues of which four gained ground and nine fell. The 6% AX Investments plc € 2024 was the best performer having increased by 1.3 per cent, to close at €117, while the 5.5% Mediterranean Investments Holding plc Unsecured € 2020 headed the list of fallers having declined by 2.8 per cent, closing at €103.

During the week, the BOV announced its allocation policy in respect of Tranche 2 Notes of the €50 million 3.50% p.a. Subordinated Notes 2030 issue. A total of €22,376,200 were applied for by the Scaled Down Applicants, divided into €5,016,500 for Series 1/2016, and €17,358,900 for Series 2/2016 while a further €14,215,500 were received from the general public, with €9,198,200 in Series 1/2016 and €5,017,300 in Series 2/2016. All applications for subscription in Series 1/2016, Tranche 2 Notes and Series 2/2016, Tranche 2 Notes have been allotted in full. Interest on the Notes will start accruing as from March 22, 2016, with the first payment occurring on August 8, 2016. The Notes are expected to be admitted to listing on the Official List of the MSE on April 8, 2016. As the second tranche of Notes will be fungible with the first tranche of Notes already in issue, the consolidation therewith will be effective on the first interest payment date.

Corinthia Finance plcannounced that regulatory approval was obtained for the €40m 4.25% Unsecured Bonds redeemable in 2026. The bonds will be issued at par with a nominal value of €100 per Bond. TheBoard of Directors has resolved to redeem the €39,927,600 6.25% Unsecured Bonds 2015-2019 on September, 24 2016 and holders of the maturing bond as at March 15, 2016 (the Cut-Off Date) were granted preference to subscribe to the new issue, including the option to apply for additional Bonds. Application forms have been mailed to current bond holders of the redeemable bond which must be submitted on pre-printed Application Forms by April 8, 2016. Applications must be for a minimum value of €2,000. An Intermediaries’ Offer will take place on April 12, 2016 in the event that the total amount of applications received from existing bondholders does not exceed €40m.

In the sovereign debt market 25 issues were active of which 21 declined, two increased and two closed unchanged on a total turnover of €6.5m. The recently issued 2.5% MGS 2036 (I) r was the most liquid having witnessed a turnover of €1.8m.

A Happy Easter to all.