FIMBank plc shares extend winning streak

MSE Trading Report for week ending May 13, 2016

The Malta Stock Exchange (MSE) Index partially shaved off the previous week’s gains, having declined by 0.11 per cent, to close at 4,563.341 points. Turnover amounted to €1.4m spread across 20 equities of which nine fell, six gained ground and five closed unchanged.

FIMBank plc shares registered an increase for the tenth consecutive week, having advanced by 9.7 per cent over 13 trades of 167,876 shares, closing $0.075 higher at $0.85.On Wednesday, the company announced that during its Annual General Meeting, all resolutions on the agenda were approved, including the authorisation of 25 bonus ordinary shares with a nominal value of $0.50 for every share held, to members on the shareholder register as at April 10, 2016.

HSBC Bank Malta plc shares fell by €0.05 or three per cent as 35,201 shares were negotiated, to close at €1.60. Similarly, Bank of Valletta plc shares registered a 1.3 per cent decline as 45 deals of 88,504 shares were struck, closing €0.03 lower at €2.24. The equity started trading ex-dividend on Wednesday. 

GlobalCapital plc shares headed the list of gainers having appreciated by 12.5 per cent as 8,214 shares changed ownership, to close €0.05 higher at €0.45.

Conversely, Tigne Mall plc (Tigne) shares were the worst performers having stumbled by €0.089 or 7.8 per cent across two trades of 48,200 shares. In its Interim Directors Statement released yesterday, the company reported an increase in tenant sales when compared to the first quarter of 2015 as the mall continues to be fully let. The company’s financial position is improving and the outlook for the rest of 2016 remains positive.

In the I.T. sector, 6pm Holdings plc shares fell by £0.05 or five per cent as eight deals of 69,781 shares were negotiated, ending the week at £0.95. On a similar note, RS2 Software plc shares edged 0.2 per cent lower as 154,841 shares changed hands on the highest turnover this week worth €585k, to close at €3.789.

Meanwhile, Loqus Holdings plc shares traded flat at €0.131 over a sole transaction of 1,750 shares.

MaltaPost plc shares registered a €0.06 or three per cent decline over a sole transaction of a mere 100 shares executed at €1.92.On Tuesday, MaltaPost plc announced its Interim Financial Statements for the six-month period ending March 31, 2016. The increase in international mail services, registered mail and parcel activities boosted revenue by five per cent to €14million. However, the company reported a profit before tax of €1.7million – down by 34 per cent from the comparable period in 2015.  The results for this half-year are in line with projections as one-off items recorded in the six months ending March 2015 were not repeated in the period under review. The company remains focused to diversify its revenue stream due to the continued decline in revenue from traditional letter mail. Earnings per share stood at €0.03.

International Hotel Investments plc shares ended the week in positive territory with a 3.2 per cent gain as 10 trades of 58,068 shares were executed, closing at €0.64. Also on a positive note, Medserv plc shares rose by 0.6 per cent across five deals of 20,400 shares, to close at €1.795.

Simonds Farsons Cisk plc shares closed the week unchanged at €6.30 over three trades of a mere 600 shares. On Thursday, the company announced its preliminary financial statements for the year ended January 31, 2016. The Group recorded a profit of €11.2m equivalent to an increase of €3.2m or 40 per cent over the previous financial year. Pre-tax profit from continuing operations was €10.1m – up by 22.8 per cent from the previous year. Revenue for the period under review rose by 7.2 per cent to €84.9m. The positive performance was attributed to new market and sales initiatives, the launch of new products and the robust tourism industry and GDP growth in Malta. Earnings per share stood at €0.374. The board of directors will recommend for approval a final net dividend of €0.0733 per share, which will be paid on June 30 to shareholders on the shareholder register as at May 27, 2016.

The other non-movers this week were Grand Harbour Marina plc, Plaza Centres plc and Malta International Airport plc shares having closed unchanged at €0.90, €1.08 and €4.37 respectively.

GO plc shares strengthened by €0.05 or 1.4 per cent over 12 trades of 22,478 shares, to close at €3.55.  This followed the company’s Interim Directors Statement announcement, outlining the transformations in the GO Group – the spin-off of its property arm, Malta Properties Company plc and the 51% shareholding in both the Cyprus-based Cablenet Communication Systems Limited and Kinetix IT Solutions Limited.

The company reported that in line with clients’ expectations it has invested to deploy fibre to the home and to launch 4G technology. Bundle selling initiatives, upgrades to higher broadband speeds and IPTV and the migration from mobile prepaid clients to post-pay has contributed to a higher average revenue per user. The Board is confident in retaining its position as the leading provider of telecommunication services in Malta and broadening its market share in Cyprus.

Potential investors for the company’s on-going sales process have submitted a number of binding offers which are currently being evaluated. The preferred bidder will be selected later this month.

MIDI plc shares slipped by 2.6 per cent as 16,100 shares were dealt, closing at €0.38. On Thursday, the company announced that during its Annual General Meeting all of the resolutions on the agenda were approved, including the payment of a net dividend of €0.007 per share payable by May 27, 2016.

Mapfre Middlesea plc shares registered a 0.4 per cent decline over a single deal of a scant 500 shares, to close at €2.24. On the other hand, Malita Investments plc shares edged 0.1 per cent higher across four trades of 19,000 shares, closing at €0.90.

Malta Properties Company plc shares fell by three per cent as 13 transactions of 52,471 shares were negotiated, to close at €0.543. During the week, MPC issued its Interim Directors Statement, reporting stable revenue streams in line with the Company’s expectations and continuous efforts to redevelop the Company’s commercial property portfolio, worth €54 million. Current projects include the development of a state-of-the-art Data Centre on the Zejtun Exchange, building alterations and refurbishment of its Floriana property, and the transformation of the existing building in Marsa into a new small exchange which will allow GO to relocate its equipment from the main building. Discussions are also underway regarding the potential development of its St. George's property in St. Julians.

In the corporate bond market 37 issues were active of which 16 increased in value, eight declined and 13 closed unchanged. Turnover amounted to €1.5m. The 6% Island Hotels Group Holdings plc € 2024 was the most liquid having witnessed a turnover of €236,450, to however close 3.5 per cent lower at €111.01.

MIDI plcannounced that subject to regulatory approval, new secured bonds will be issued at par worth €50million, redeemable in 2026 as the 7% MIDI 2016-2018 issue, denominated in EUR and GBP bond will be redeemed.

It is the company’s intention to grant holders of the maturing bonds the opportunity to surrender and cancel all or part of their holding in the maturing bond in exchange for bonds in the new bond and that specific amounts of the new bond will be reserved to holders of the maturing bond and to shareholders of the company.

In the sovereign debt market activity was spread over 25 issues of which 14 gained ground and 11 declined as turnover totalled €5.4m. The 4.65% MGS 2032 (I) was the best performer having appreciated by 0.3 per cent, to close at €138.92.