Positive announcements push index to a fresh nine year high
MSE Trading Report for week ending February 24, 2017
As a direct consequence of positive published results by three listed companies with a considerable market cap, the MSE Index gained 0.13 per cent, to reach a fresh nine year high at 4,747.812 points. Furthermore, most of the other shares which closed higher registered solid gains. Trading in the equity market was spread across 17 equities of which seven headed north, six headed south and four closed unchanged as total turnover reached €1.7m.
All banking shares other than Bank of Valletta plc performed positively. Lombard Bank Malta plc experienced a 4.9 per cent price appreciation across eight transactions of a combined value of €93,870. This sharp increase pushed the equity to the €2.35 price tag – a fresh one year high.
Bank of Valletta plc (BOV)and HSBC Bank Malta plc (HSBC) experienced the exact opposite performance. The former declined by 0.1 per cent to close at €2.19 while the latter registered a fresh three year high by increasing by the same margin, to close at €2.05. Trading volumes were however significantly different as almost double the value traded in HSBC was traded in BOV. In fact, trading in the former equity amounted to €237,751 while trading in BOV surpassed the €415,000 mark.
On Tuesday, prior to trading, HSBC Bank Malta plc announced its financial results for the year ended December 31, 2016. The company reported a profit attributable to shareholders of €40.2m, resulting in earnings per share of 11.2 cent when compared to the 8.5 cent reported in 2015. The Board recommends the payment of a final gross dividend of 4.1 cent per share (2.7 cent per share net of tax). Together with the interim dividend paid in September 2016, the total gross dividend for the year will be 11.2 cent per share (7.3 cent per share net of tax), which represents a 45% increase compared to the 2015 dividend. The final dividend will be paid on April 20, 2017 to shareholders on the bank’s register of shareholders at March 14, 2017.
The gain registered in the share price of FIMBank plc was in the same territory as that of HSBC as the price rose by 0.6 per cent. The closing price at the end of the week read $0.90 trading four times as 54,532 shares changed hands.
Simonds Farsons Cisk plc shares registered a price decline of 1.4 per cent as it closed at €7.20. A total of 5,000 shares were traded across three deals. A price decline, although of a smaller magnitude, was also registered in Plaza Centres plc shares, which closed at €1.09, on six deals of a combined trading value of €75,106.
On Tuesday, GO plc announced that the board of directors approved its preliminary statement of annual results for the financial year ended December 31, 2016. The Group’s revenue increased by €33.3m to €157m. Profit before tax amounted to €28.1m compared to €34.2m in 2015 resulting in an earnings per share (EPS) of €0.182 compared to €0.261 in 2015. Cost of sales, administrative and related costs amounted to €131.9 million compared to €97.5 million in 2015. The main increase of €29.7 million is the result of the consolidation of the results of Cablenet and amortisation charges that result from the intangible assets created as a result of the acquisition of both Cablenet and Kinetix. The acquisitions concluded during the year had a positive effect on Group Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) which grew by 19.4% to €61.6 million, an increase of €10 million over the comparative year.
Furthermore, the board resolved to recommend that the Annual General Meeting approves the payment of a final net dividend of €0.11 per share which will be paid on May 5, 2017 to all shareholders on the company’s register as at April 3, 2017.
This week, GO traded 25 times as its share price settled at €3.55, after reaching its highest level since May 2016 intraweek. This closing price resulted in a 1.5 per cent increase from last week’s closing price.
Although trading on thin volumes, Santumas Shareholdings plc shares were the week’s top performers following a gain of 10 per cent. The equity closed at €1.54 – a fresh all-time high.
Last Wednesday, the Board of Directors of Malta International Airport plc announced the company’s financial statements for the year ended December 31, 2016 wherein it was reported that profits for the year increased from €19.3 million to €21.0 million. Increases in revenues were registered by both the company’s aviation and non-aviation segments. The global sum of Group revenues for the year was €73,064,828, up from €66,965,843 in 2015. Aviation revenues, which grew by 10.9% to €51.5 million, are largely attributable to a new traffic milestone achieved with over 5 million guests welcomed at the airport last year.
The Board of Directors is recommending the payment of a final net dividend of €0.07 per share (gross €0.107692) on all shares settled as at close of business on April 10, 2017, payable by not later than May 26, 2017.
These positive results were reflected in shares traded as a total of €187,223 was negotiated across 18 deals. This heavy trading had a positive effect on the equity’s price having increased by 1.2 per cent, to settle at €4.20. The equity also reached the highest recorded levels since October 2016 as the price hit the €4.25 price level intraweek.
Both GlobalCapital plc shares and Malta Properties Company plc shares depreciated by 3.7 per cent. The former traded on low volumes to close at €0.395 while the latter traded on 43 different occasions, to settle at €0.52 – the lowest closing price in the last six months. Total turnover in this equity was just below €165,000.
On the contrary, Medserv plc shares rallied by 3.6 per cent as the closing price read €1.658. This fresh 10 week high was obtained over seven transactions of 40,258 shares.
The recent slump of RS2 Software plc shares continued as the price decreased by 2.9 per cent to hit €1.649. This meant a fresh two month low for the equity as a total of 17 deals of a combined value of €91,473 were registered.
On Thursday, Loqus Holdings plc announced the approval of the directors’ half-yearly report for the six months ending December 31, 2016. The Group registered an overall profit for the period due to improvements in cost management however reported a reduction in revenue. Despite this announcement, the equity failed to register any trades.
Active equities which failed to experience any changes in price were International Hotels Investments plc, Mapfre Middlesea plc, Malita Investments plc and MIDI plc.
The sovereign debt market and the corporate bond market experienced opposite fortunes. In the corporate debt market a total of 40 issues were active of which the majority closed in the red, 11 headed north while another 12 closed unchanged. Total trading in corporate bond issues amounted to almost €2m. The 6.8% Premier Capital plc € Bond 2017-2020 headed the list of gainers as it rose by 2 per cent, to close at €100.5. The company announced that, in accordance with the announcement published on October 7, 2016, it will be redeeming the 6.8% Premier Capital plc 2017-2020 bond on March 16, 2017 at par. On the contrary, the 5.25% Central Business Centres plc Unsecured € 2025 S2T1 continued on a negative trend as it registered a 3.8 per cent decline, to close at €101.
On Wednesday 22 February 2017, the Board of Directors of Eden Finance p.l.c. announced that it has submitted an application to the Listing Authority requesting the admissibility to listing of €35,000,000 Eden Finance p.l.c. Unsecured Bonds 2027. Subject to regulatory approval of this new bond issue, the issuer has resolved to redeem the 6.6% Bonds 2017-2020 on June 16, 2017, this being the first early redemption date provided for in the prospectus. The cut-off date for eligibility is March 27, 2017.
In the sovereign debt market, total trading amounting to €5.2m was spread across 23 active issues, with 14 registering gains and the remaining 9 declining.