MSE Index maintains positive stance

MSE Trading Report for week ending May 6, 2016

TheMalta Stock Exchange (MSE) Index extended last week’s gain by a further 0.48 per cent, to close at 4,568.514 points. Activity was spread across 19 equities of which 11 increased in value, six fell and two closed unchanged. Turnover amounted to €1.4m.

In the banking sector, HSBC Bank Malta plc shares registered a 1.9 per cent gain as four deals of 9,729 shares were struck to close €0.03 higher at €1.65. Meanwhile, Bank of Valletta plc (BOV) shares fully erased last week’s 0.4 per cent loss having gained 0.9 per cent, to close at €2.27. BOV shares were the second most active equity throughout the week, having witnessed a turnover of €357,806.

FIMBank plc shares advanced by a further 1.3 per cent over nine trades of 75,072 shares, closing at a two-year high of $0.775. Conversely, the share price of Lombard Bank Malta plc registered a 0.2 per cent decline as six transactions of 9,327 shares were executed, to close at €2.13.

Elsewhere, Malta International Airport plc shares edged 0.5 per cent higher across 12 trades of 16,392 shares, closing at €4.37. The local airport operator announced its traffic results for the month of April – the company recorded a 5.7 per cent increase in passengers compared to April 2015, mainly as a result of the launch of new routes, airlines, and an increased flight frequency. The United Kingdom, Italy, Germany and France remain the top destinations followed by Poland which has recorded a 27.3 per cent growth over 2015. During its Annual General Meeting held on May 4, 2016, all the resolutions were approved, including the payment of a final gross dividend of €0.1538463 per share (net €0.10).

The share price value of Plaza Centres plc rose by 3.9 per cent across three transactions of 1,689 shares, closing €0.04 higher at €1.08. On Thursday, the company announced that it has entered into a preliminary agreement for the acquisition of a 3,288 s.m. commercial real estate in Sliema, including 100 car spaces. The preliminary agreement is subject to a number of conditions precedent that need to be satisfied before closing, on or around October 31, 2016.

Tigne Mall plc shares dipped by a minimal 0.1 per cent over three deals of 14,300 shares, to close at €1.149. Similarly, Medserv plc shares registered a 0.4 per cent decline as 42,614 shares changed hands, closing at €1.784.

6pm Holdings plc headed the list of gainers for the second consecutive week as its share price soared by £0.045 or 4.7 per cent across four trades of 4,600 shares, closing at an all-time high of £1. Meanwhile, RS2 Software plc shares gained a marginal 0.1 per cent as 128,502 shares were negotiated, closing at €3.798.

Elsewhere, GlobalCapital plc shares traded flat at €0.40 as 8,214 shares changed ownership. Last Monday, the company announced its annual financial results for the period ended December 31, 2015. The Group reported a profit before tax of €5.6m, compared to €811k, reported in 2014. The Group’s results include net fair value gains on its financial and property investment portfolios amounting to €7.2M which were partially compensated by an increase in technical reserves. Earnings per share stood at €0.312 cents. Due to the lack of distributable reserves at the end of the reporting period, the Board of Directors has resolved not to recommend the payment of a dividend for 2015.

Simonds Farsons Cisk plc shares increased by €0.18 or 2.9 per cent as 1,383 shares changed hands, closing at €6.30. The company announced that its 69th Annual General Meeting will be held on June 28, 2016.

Mapfre Middlesea plc shares recovered by 2.3 per cent across three deals of 1,500 shares, to close €0.05 higher at €2.25.

Meanwhile, the share price of Santumas Shareholdings plc registered a €0.03 or 1.3 per cent gain on a sole transaction of 1,095 shares executed at €2.38.

On the down side, the share price of International Hotel Investments plc plunged by 4.6 per cent as 23 deals of 117,660 shares were executed, to close €0.03 lower at €0.62. Likewise, Malita Investments plc shares fell by 2.3 per cent over six trades of 27,500 shares, closing at €0.899.

GO plc shares ended the week 0.6 per cent higher across 17 transactions of 49,140 shares, to close at €3.50. In the company’s Interim Directors’ Statement released after close of trading on Friday, the Board updated shareholders on its ongoing sale process as approved during the Extraordinary General Meeting (EGM) on October 29, 2015.  Following this EGM the company released initial information about the GO Group to various potential investors. There was a positive response and several investors pursued the initiative further, signed the necessary non-disclosure agreements and received an extensive information memorandum enabling them to submit nonbinding offers. In February, GO received a number of non-binding offers and after careful evaluation by GO and its advisors, bidders were then granted access to the data room. Following this, a number of binding offers have been received and these are being evaluated with a view to selecting the preferred bidder later this month.

Malta Properties Company plc lost further territory, having slipped by 1.4 per cent over nine deals of 30,350 shares, closing at €0.56.

The other non-moving equity this week was MaltaPost plc having closed unchanged at €1.98 over a single trade of 1,000 shares.

In the corporate bond market 30 issues were active of which 11 declined, 13 advanced and six closed unchanged as turnover totalled €865,984. The 5.75% Central Business Centres plc Unsecured €2021 S1T1 headed the list of gainers having increased by 3.4 per cent, to close at €106, while the 4.25% Corinthia Finance plc Unsecured € 2026 was the most liquid having witnessed a turnover of €291,422.

In the sovereign debt market turnover dropped from €7.4m to €4.3m spread across 22 issues of which 13 declined and nine strengthened. The 5.25% MGS 2030 (I) was the best performer having increased by 0.3 per cent, to close at €144.32, while the 3% MGS 2040 (I) headed the list of fallers having declined by 0.7 per cent to close at €110.30. On the other hand, the 2.5% MGS 2036 (I) r was the most active issue having witnessed a turnover of €1.1m.