Positive MSE Index as gainers outweigh losers

MSE Trading Report for week ending March 30, 2017

The MSE Index halted a three week downturn as it registered a 0.233 per cent gain, to close at 4,718.423 points. In line with last week, a total of 13 equities were active, of which gainers and losers tallied at five each while the remaining three remained unchanged. Total turnover fell some €60,000 short of the €1m mark as trading was spread over a shortened week of four days due to a public holiday.

A new equity is shortly to be listed on the MSE as on Wednesday following regulatory approval, leading entrepreneur, Paul Gauci announced an offer to the public of 27 million shares of a nominal value of €0.25 each in PG plc at an offer price of €1 per share. The offeror has entered into pre-allocation agreements with selected financial intermediaries for subscription amounting in aggregate to 20 million shares. The offeror has also reserved a maximum of 1 million shares to employees of PG Group. The remaining balance of 6 million shares shall be made available for subscription by financial intermediaries through an intermediaries offer.

Malta International Airport plcreached a fresh four week high as the equity traded five times with 8,175 shares exchanging hands. The price per share increased by 2.1 per cent, as it settled at the €4.239 price tag.

Lombard Bank Malta plc shares also had a strong weekly showing, as an increase of 1.2 per cent in its share price was registered, reaching a fresh 15 month high at €2.48.

Mapfre Middlesea plcshares closed 1.9 per cent higher, as four transactions of 3,000 shares were registered. The company also announced that it will be convening its 36th Annual General Meeting on Friday 21, April 2017. The price at the end of this four day week read €2.19 – a fresh two week high.

Shares of Medserv plc and RS2 Software plc depreciated by similar margins. The former declined by 1.3 per cent, to fall to the lowest level since November 2016 of €1.58 while the latter reached a fresh 15 week low by registering a 1.2 per cent decline, to settle at €1.62. The software company’s equity has declined by 11 per cent since end of 2016.

Bank of Valletta plc’s equity featured in 52 separate deals worth €275,500, as it headed 0.5 per cent north, to close at €2.20.

A positive week was also registered by Malta Properties Company plc shares as these appreciated by 0.2 per cent, to close at €0.521. Trading in this equity very low as the equity traded on four occasions for a total value of €3,450.

GO plcshares were the most liquid during the week, as the equity’s price depreciated by 0.6 per cent, to close at €3.499. A possible factor behind this decline is the fact that, on Thursday, the equity fell ex-div, that is, any buyers from now on will not be receiving the next company dividend due on May 5, 2017.

Malita Investments plcshares stumbled, as the equity fell by 0.7 per cent, to €0.75. Turnover exceeded €22,200 spread across four deals. Grand Harbour Marina plc shares were also on the negative end of the spectrum. The price per share declined by 0.2 per cent over mere volumes. Last Wednesday, it was announced that the board of directors of Grand Harbour Marina plc have approved the financial statements for the period ended December 31, 2016 and resolved that they will be submitted for the approval of the shareholders at the forthcoming Annual General Meeting.   The Group results in 2016 showed increases in revenues, EBITDA and profit before tax above the levels achieved in 2015. This was based on continued improvements in the performance at Grand Harbour Marina (“GHM”), and with the support of their joint venture partner, IC Holdings, improved performance at IC Cesme Marina Yatirim, Turizm ve Işletmeleri Anonim Şirketi (“IC Cesme”). A combined profit before tax of €0.92 million for the two businesses was achieved in 2016, compared to €0.53 million in 2015. The Company had paid an interim dividend of €0.48 million during 2016 (2015: €Nil), but the directors of the Company are not proposing the payment of any final dividend.

Following the lack of trading activity registered by 6PM Holdings plc, the company issued an announcement in which it stated that the Paying Agent and Registrar, have notified the Company that the remaining 1.85 per cent of the issued share capital of the Company, not already held by Idox, have been transferred in the name of Idox in the register of shareholders of the Company as registered at the Central Securities Depository of the Malta Stock Exchange.

Furthermore, a cash consideration equivalent to £0.88 per share forming part of the Remaining Shares, has been settled in full in favour of the shareholders of the remaining shares of the Company.

Following the completion of the squeeze-out process, Idox has confirmed that it intends to propose to the board of directors and general meeting of the Company to apply to the Listing Authority for discontinuation of listing of Company shares on the Official List of the Malta Stock Exchange on the basis that the conditions for listing can no longer be fulfilled.

Other active non-moving equities were HSBC Bank Malta plc, Simonds Farsons Cisk plc, and MIDI plc. The closing prices of these equities at the end of the week read: €2.06, €7.20 and €0.33 respectively.Trading in HSBC shares reached just over 96,000 shares spread on 13 deals.

Trading in the corporate debt market was generally negative. From the 33 active issues; 6 gained, 11 declined and 16 closed unchanged. Total trading in corporate bond issues also fell below the €1m mark by €90,000. The 4% MIDI plc Secured €2026 stole the limelight, as it fell by 1.7 per cent, to close at par.

Last Tuesday, following regulatory approval, the Board of Directors of Eden Finance announced the issue of €40,000,000 Unsecured Bonds due in 2027, with an interest coupon of 4% payable annually in arrears (the “Bonds”). Preference is being given to holders of the Existing Eden Bonds who appeared on the register of bondholders as at close of business on March 27, 2017 to subscribe to the Bonds by surrendering their Existing Eden Bonds. The said holders existing Eden Bonds may also subscribe for additional Bonds.

Meanwhile. SD Finance plc announced the issuance of €65 million Unsecured Bonds, with an attached coupon rate of 4.35 per cent maturing in 2027. The issuer has entered into placement agreements with a number of Authorised Financial Intermediaries.

Sovereign debtissues closed positively for the second week running, as 22 of the 25 active issues gained ground. The three issues which declined were two short dated bonds and one of medium term maturity. Heading the list of gainers was the 2.4% MGS 2041, as this gained 1.5 per cent, to close at €99.60.