Treasury announces issuance of New Government Stocks

MSE Trading Report for week ending February 3, 2017

The Accountant General announced the issuance of three new Malta Government Stocks, the 1.4% MGS 2023 (III), 1.5% MGS 2027 (I) and the2.2% MGS 2035 (I) which shall in the aggregate be €130m subject to an over-allotment option of €90m in the event of over-subscription.  The offer price for each of the stocks will be established on February 8, 2017 – applications will open on Monday, February 13, 2017 and close on Wednesday, February 15, 2017 or earlier at the discretion of the Accountant General.

The sovereign debt market performed negatively as almost €12m worth of trades across 26 issues yielded a negative outcome for all of these issues except for 4 short-dated issues which closed unchanged. The 3.3% MGS 2024 (I) experienced the worst fall in price registering a 1.6 per cent decline over last week to close at €116.41.

On the contrary, in the corporate debt market total turnover exceeded €2.1 million, spread across 38 issues – 16 headed north, 13 declined, while nine closed unchanged. The largest gain was recorded in the 5.3% United Finance Plc Unsecured € Bonds 2023 having increased by 3.9 per cent, to close at €108.

The MSE Index failed to sustain last week’s gain having declined by 0.1 per cent, to close the week at 4,715.797 points. Trading in the equity market was spread across 15 equities of which gainers amounted to five, fallers to seven while the remaining three closed unchanged. Total turnover was just short of €1.9m.

Trading in Bank of Valletta plc shares amounted to almost 43 per cent of total trading but this left no effect on its price after closing unchanged at €2.17.On the contrary, HSBC Bank Malta plc shares traded 23 times reaching a total turnover of€120,000 and appreciating one per cent in value, to close at €2.02.

FIMBank plc shares suffered a decline of 1.1 per cent to close at $0.89, as nine transactions saw 168,180 shares push its price down to an intra-week low of $0.86.

Lombard Bank Malta plc’s equity was the other banking industry component to trade during the week. Despite trading on thin volumes spread over two trades, the equity’s price appreciated by 0.2 per cent, to close at €2.28.

On Thursday, Mapfre Middlesea plc announced that the Board of Directors is scheduled to meet on March 8, 2017 to consider and approve the company’s audited financial statements for the financial year ended December 31, 2016. The company will also consider the declaration of a dividend, if any, to be recommended to the Annual General Meeting of Shareholders. Meanwhile, during the week, the equity traded twice for a total value of nearly €20,000 but slipped by 0.2 per cent to close at €2.22.

GO plcshares experienced another positive week having appreciated by 1.5 per cent to close at €3.45 thus again establishing a fresh eight month high. Turnover amounted to €103,500 spread over nine trades.

Malta Properties Company plc shares rebounded timidly after last week’s sharp decline, as the price increased by 0.4 per cent, to settle at the €0.532 price tag. On Tuesday, the company announced that SLM Property Company Limited and Toncam Properties Limited entered into a promise of sale agreement for the sale and transfer of the complex known as Sliema Old Exchange. Upon the final deed of sale, the Property will no longer form part of the property portfolio of MPC and consequently there will no longer be any rental income received in terms of the Property. The proceeds from the disposal of the Property are expected to go towards funding MPC’s development projects and/or any acquisition opportunities.

A single trade of 17,300 shares caused Plaza Centres plc shares to record the largest decline for the week. The price fell by 4.4 per cent to read €1.10 at the close of the final trading session for the week.

Similar turnover was witnessed in Simonds Farsons Cisk plc and Malita Investments plc however yielding different outcomes. The former closed unchanged at its all-time high of €7.30 while the latter declined by 0.8 per cent, to close at €0.843.

In the tourism industry, both International Hotel Investments plc shares and Malta International Airport plc shares headed south. The price of International Hotel Investments plc’s equity declined by 1.5 per cent over ten trades worth slightly less than €64,000 in total. The closing price at the end of the session read €0.65. During the week, the company announced that it has appointed Numis Securities to help the company explore financing options, including potential capital raising to enable IHI and its subsidiary developments and operating companies to take advantage of its growing pipeline of potential development project opportunities.

On the other hand, Malta International Airport plc shares extended last week’s negative trend, having declined by one per cent to €4.03. A total of 36 trades were registered which amounted to €283,000 – 15 per cent of total market trading.

RS2 Software plcshares closed in the red by 1.1 per cent over 15 deals of 75,880 shares. The price at the end of Friday’s session read €1.76.

A total of 257,100 MIDI plc shares changed hands over eight deals during the week. This left a negative impact of 0.3 per cent on its share price to close at €0.33.

Trading was also witnessed in shares of Medserv plc but this failed to veer the equity’s price having closed unchanged at €1.60.