Local Sovereigns rally in line with European counterparts

MSE Trading Report for week ending May 19 2017

The MSE index closed the week marginally lower following strong sessions on Thursday and Friday – managing to recoup the lost ground incurred earlier in the week to close at 4,631.853points.

Government stocksstood in the limelight, due to uncertainty in the United States, causing European Government debt prices to increase, particularly on longer dated bonds. Out of total of 22 Malta Government Stocks which were active during the week 18 gained ground – with gains ranging from 0.10 per cent to 1.35 per cent. On the other hand, four issues experienced marginal declines with the 4.25% MGS 2017 (III) registering the weakest performance to close 0.24 per cent lower at €101.95.

In the corporate debt market 34 issues were active during the week of which 17 closed higher, seven lost ground while 10 remained afloat. The 4.5% Hili Properties plc Unsecured € 2025 registered this week’s strongest performance as the bond price increased by 1.8 per cent to close at €104.49.

Last week, the Prospects Committee of the Malta Stock Exchange approved the application for admission to Prospects of the proposed issue of €1,000,000 Anchovy Studios plc 5.5% Unsecured Bonds 2027. Anchovy Studios plc carries on the business of performance marketing and lead generation services to clients operating across a spectrum of sectors – it specialises in attracting users from a diversity of online and mobile channels and directing them to its customers.

In the equity market, a total of 17 equities were active during the week of which four headed north, eight closed lower, while five closed flat. Total turnover for the week declined from €3.56 million to €1.82million.

In the banking sector, Lombard Bank plc outshined its peers as three transactions amounting to 4,171 shares managed to lift the equity’s price by 3.9 per cent to close at €2.39. On the other hand, HSBC Bank Malta plc shares closed the week in negative territory, as 13 trades generating a total turnover of €45,821 erased 0.6 per cent of its value to close at €1.988.

In the same sector, Bank of Valletta plc shares had the lions share of total turnover amounting to 46 per cent. Despite the high turnover the equity  declined by 0.7 per cent to close at €2.19, having traded at a low of €2.15.

On the same note, FIMBank plc shares started off the week on a negative note, but managed to recoup the majority of its decline in the following session to close the week at $0.775. Total turnover during the week ammounted to $34,691, spread over four deals.

Last Tuesday, Malta International Airport plc announced that during the period January 1 to March 31, 2017 the financial position of the company has remained sound and the performance is superior to Q1 2016.

Passenger numbers in this period grew by 22.2 per cent, resulting in a 15.8 per cent increase in turnover, equivalent to €13.4 million. Total expenditure was €7.6 million, an increase of 5.3 per cent. Meanwhile, profit before taxes increased by 64.1 per cent from €2.54m in Q1 2016 to €4.17m in Q1 2017.

The positive results had a ripple effect on the equity as it advanced by 0.6 per cent – recouping the majority of last week’s decline to close at €4.12. A total of 25 transactions managed to generate a total turnover of €169,019.

In the oil and gas industry, Medserv plc shares hit its lowest level since June 2015 as the equity lost 10 cents of its value on Monday to close at €1.25 – as six trades generated a total turnover of €51,122.

PG plc shares traded in negative territory for four consecutive sessions, but was halted on Friday, erasing half of this week’s decline. The equity closed 1.2 per cent lower, as 43 trades managed to generate a total turnover of €482,651.

In the property sector, 17,000 shares spread over four trades in MIDI plc saw the price close 3.2 per cent higher at €0.32 – as the equity fell ex-dividend last Thursday.

Similarly, RS2 Software plc shares fell ex-div/Ex-bonus last Thursday as in an announcement dated 18 April 2017, it was announced that the payment of a final dividend will be of €0.01 per share. In addition to the cash dividend, a bonus share issue of one share for every twelve shares held by

Shareholders on the Company’s share register as at close of business on Friday 19 May 2017. The equity advanced by 4.9 per cent to close at €1.55 – as 14 transactions generated a total turnover of €62,699.

In the telecommunications sector, GO plc shares oscillated between positive and negative territory to close flat at €3.48. A total of nine deals saw 8,125 shares changing hands.

International Hotel Investments plcfell to its lowest level since February 2016 on Wednesday, recouping a small fraction during the following session to close at €0.606 – as five trades generated a total turnover of €15,404.

Three trades amounting to 4,194 shares in Maltapost plc managed to erase 2.5 per cent of its value to close at €1.95. On the same note, Malta Properties |Company plc fell 5.4 per cent closing at €0.511 – its lowest level since August 2016.

Elsewhere,Mapfre Middlesea plc, Plaza Centres plc, Malita Investments plc, Tigne Mall plc closed unchanged despite being active during the week, closing at €2.01, €1.04, €0.72 and €1.00 respectively.