Investors’ gain extended hours of trading.

MSE Trading Report for week ending April 21, 2017

The MSE Index closed in the red as a 0.05 per cent decrease was registered over four trading days – in the first week of extended trading hours on the Malta Stock Exchange. The Index settled at 4,702.925 points asatotal of 16 equities were active during the week. Half of these appreciated while another seven registered losses as the other active equity closed unchanged. Total turnover amounted to €902,644.

Bank of Valletta plc was back to levels last seen in January 2008, as the equity’s price increased by 1.4 per cent, to close the week at €2.25. This share featured in 44 separate deals worth almost €212,000. On Thursday, the company announced that its board of directors is scheduled to meet on Thursday, April 27, 2017. The board shall consider and approve the Group's and the Bank's interim financial statements for the six months ended March 31, 2017, and if deemed fit, declare an interim dividend.

Banking industry counterpart – HSBC Bank Malta plc’s shares, failed to hold to the €2.09 intra-week high, as the price at the end of the week read €2.06. This equates to a 1.3 per cent week on week decline. This outcome was achieved via 29 trades worth €131,170.

The equities of Lombard Bank Malta plc and FIMBank plc headed south by 3.1 per cent and 1.4 per cent, respectively. The drop in the share price of Lombard’s to €2.41 resulted from two trades of 2,300 shares, while FIMBank’s equity price read $0.799, following low trading volumes.

FIMBank plc also announced that the Annual General Meeting (AGM) shall take place on Thursday, May 11, 2017. Among the resolutions subject for approval, the board is recommending a bonus issue of fully paid up ordinary shares of a nominal value of $0.50 per share, in the ratio of 1 share for every 80 owned – allotted to those Members on the Register as at the record date April 11, 2017. The directors will also recommend, subject to regulatory approval, that the Company makes one or more rights issues over a period of three years to raise in aggregate a minimum of USD 100 million by the issuance of ordinary shares to its members on such terms and conditions as may be determined by the board of directors.

Mapfre Middlesea plc shares closed at a fresh five month low, as a loss of 0.9 per cent was registered. The price at the end of the final session for the week read €2.10. Total turnover was just below €8,000, spread over two trades.

Simonds Farsons Cisk plc’s equity closed at a fresh all time high of €7.40, as a weekly gain of 2.8 per cent was registered. This positive performance came as a direct consequence of two trades worth €20,000 in total. Similarly, Santumas Shareholdings plc shares surged by 2.9 per cent on a single transaction of 2,000 shares, as the price read €1.75 at the end of the week.

In the telecommunications industry, shares of GO plc experienced a 1.1 per cent decline, to close at €3.45. The equity traded on seven occasions, for a total turnover of €67,000.

RS2 Software plcsuffered a loss of similar magnitude, as the equity’s price declined by 1.3 per cent, to close at €1.58 – the lowest price since December 9, 2016. The company announced that it had registered profits after tax for the year of €453,133 in 2016 from the €4,819,347 reported in 2015. Meanwhile, revenue for the year also decreased from €19,437,614 in 2015 to €17,171,291 reported in 2016.  The earnings per share decreased by €0.026 – from €0.03 in 2015 to €0.004 in 2016. The board of directors pointed out that the decrease in revenue predominantly reflects the Group’s strategy to intensify focus on the managed services business – as a result of the different inherent characteristics of revenue recognition between the license and managed services, until stabilisation occurs. Moreover, the Group continued to invest heavily in human resources and infrastructure, as well as administrative and marketing expenses, which in turn impacted the bottom line of the Group. Adverse movements in foreign currencies (mainly GBP against the Euro) have also negatively impacted the Group’s profits by €1.4m

The board of directors resolved to recommend for approval at the AGM, the payment of a final dividend of €0.01 per share amounting to €1,583,332. This dividend, if approved at the AGM, will be paid on Thursday June 22, 2017 to shareholders who appear on the shareholders’ register as at the close of business on Friday May 19. In addition, it was further resolved to recommend for approval a bonus share issue of one share for every 12 shares held by shareholders on the company’s share register.

Plaza Centres plc’s equity was one of the four to exceed the €100,000 mark, as a week on week leap forward of 7.3 per cent was registered. The closing price of €1.1 translates into a fresh two month high.

Equities of MIDI plc and Malita Investments plc experienced similar fortunes, as the respective prices increased by 1.3 per cent and 1.4 per cent. The former traded on thin volume while the latter traded 16 times, for a total of €144,100. Both prices at the end of the session read €0.319 and €0.75.

On Thursday, MIDI group announced that it registered a loss after tax of €2.515 million during the financial year under review, compared to a profit of €9.920 million registered during the previous financial year. Unlike the previous financial year, the Company had very few apartments which it could deliver to respective owners. Turnover for the year, including revenues from sales of property, amounted to €8.674million (2015 – €41.042 million). Operating profit for the year amounted to €1.631 million (2015 – €13.123 million). The Board resolved to recommend for the approval of the AGM the payment of a final net dividend of €1,499,119, equivalent to €0.007 per share.  

Two equities with identical week on week performances were MaltaPost plc and Malta Properties Company plc, as they both registered a 1 per cent increase in price. MaltaPost plc closed the week at the €2.05 price tag, while the property company closed at €0.52. In total 17,000 MaltaPost plc shares were exchanged across five transactions while Malta Properties Company plc traded on thin volumes.

Tigne Mall plcshares closed off the week at a fresh seven month low, as the price declined by 0.3 per cent to €1.059. Eight transactions worth €35,220 in total, were registered in this equity. On the other hand, 20 deals of 17,520 shares, failed to veer Malta International Airport plc’s share price, having traded slightly higher during the week.

Trading in the corporate debt marketwas negative, as 13 of the active issues traded in negative territory, while nine headed north and six closed unchanged. Total trading in corporate bond issues exceeded €2,500,000. The 5.5% Pendergardens Developments plc Secured €2020 Series 1 experienced the sharpest fall as it declined by 5.1 per cent, to close at €102.50.

Elsewhere, last Tuesday, Hal Mann Vella Group plc presented its Financial Statements for the year ended December 31, 2016. The Group reported a loss for the year of €1.045m in 2016 from the €1.333m reported in 2015 – reflecting any income tax credit. As a result the earnings per share of the Group fell from €0.27 in 2015 to a negative €0.21. The revenue of the group also decreased from €11.682m (2015) to €11.182 (2016). These results had a negative effect on the company’s bond price, as the issue lost 2.4 per cent, to close off the week at €103.50.

Trading in theSovereign debt market followed a very similar trend, as 14of the 24 active issues declined while another 8 gained ground. The remaining two issues closed unchanged. Gains and losses ranged from -0.36 per cent to +0.14 per cent. The most traded stockswere the 4.1% MGS 2034 and the4.45% MGS 2032, as they both exceeded the €1,000,000 mark, from a total turnover of €4.8 million.