Three equities gain over six per cent as index closes up

 MSE Trading Report for week ending June 30 2017

The MSE index extended its positive run for the fourth consecutive week having advanced by 0.339 per cent to close at 4,697.378 points. A total of 15 issues were active during the week of which eight closed higher, four headed south, while the remaining three closed flat – as three of the seven gainers registered gains in excess of 6 per cent. Total turnover in the equity market marginally declines from last week’s €1.77 million to €1.75 million.

Medserv plc managed to recoup some of May’s losses as the equity gained 6.6 per cent, to close at €1.30 – reaching a six-week-high. Total turnover in the equity amounted to €44,370, spread over 15 deals.

A similar gain was registered by RS2 Software plc shares, thus extending its positive run for the eight consecutive session, as the equity managed to notch a 6.2 per cent gain to close at €1.72 – to reach a yearly high. A total of 45 deals managed to generate 24.6 per cent of total turnover in the equity market as 259,228 shares changed hands. 

Meanwhile, Santumas Shareholdings plc reached a fresh all-time high after hitting the €2.00 mark – as five deals generated a total turnover of €27,340.

In the banking sector, Lombard Bank plc shares outperformed its banking peers, as the equity advanced by 2.8 per cent to close the week at €2.365 – reaching a one-month-high, as 11 deals were executed as 30,090 shares changed hands.

On the other hand, banking counterparts Bank of Valletta plc and HSBC Bank Malta plc closed the week in negative territory – with HSBC being the weaker performer.  HSBC shares closed the week 1.4 per cent lower at €2.05, while Bank of Valletta shares declined by 0.9 per cent to close at €2.18. A total of 44 deals were executed on 124,184 shares while 13 deals were executed in HSBC on 30,488 shares.

Tigne Mall plc shares oscillated between negative and positive ground, hitting a 22- month-low intra week at €0.901. A single trade on Friday over a slim volume managed to recoup the majority of the lost ground to close 3.9 per cent lower at €0.98 – as nine trades generated a total turnover of €127,172.

In the same sector, Malta Properties Company plc, closed the week in positive territory as four trades on Monday amounting to 12,500 shares saw the equity gain 1.7 per cent at €0.529.

Last Wednesday, Malita Investments plc announced that it has entered into two credit facility agreements with the European Investment Bank and the Council of Europe Development Bank respectively for the purposes of financing the construction of a number of affordable housing units in Malta. This is expected to provide the Company with a stable return on investment.

The 25 year term facilities are for an aggregate amount of €53.7 million and will finance the construction of circa 680 units.

Despite generating a total turnover of €64,792 spread between nine deals, the equity close flat at €0.74.

A total of 10 trades amounting to 66,514 shares in International Hotel Investments plc saw the shares value appreciate by three per cent to close at €0.62 – after adjusting for the bonus share allocation.

In the telecommunications sector, GO plc shares erased last week’s decline as the equity closed the week 0.4 per cent higher at €3.47, having traded at €3.45. A total of 12 deals generated a total turnover of €153,876.

On the other hand, Malta International Airport plc shares shaved 0.8 per cent of its value to close at €4.115. Total turnover amounted to €103,888, spread over 10 transactions.

Last Tuesday, Simonds Farsons Cisk plc announced that it held is 70th Annual General Meeting on 27th June 2017. The shareholders convened for this event discussed and approved all the resolutions including the approval of a final net dividend of €2,400,000 paid out of tax exempt profits equivalent to a net dividend of €0.08 per ordinary share as recommended by the Directors, be hereby approved

Meanwhile the proposed spin-off resolution was also approved. This resolution stated that the Spin-Off of the Company’s shareholding in Trident Estates Ltd. be effected through the payment, by the Company to its shareholders, of a dividend in kind by way of a distribution of the Company’s shareholding in Trident on a pro-rata basis to its Shareholders and to authorise the Board of Directors of the Company to take all measures that may be necessary or expedient to implement the Spin-Off.

Elsewhere, Plaza Centres plc, and Mapfre Middlesea plc, closed unchanged at €1.00 and €1.90 respectively while PG plc gained a minimal 0.08 per cent to close at the €1.30 price level.

In the corporate debt market, a total of 22 issues were active during the week of which, 11 closed in positive territory, six headed south, while five closed unchanged.

Last Monday, Grand Harbour Marina plc announced that it has received regulatory approval for the issue of €15,000,000 4.50% Unsecured Bonds redeemable in 2027, having a nominal value of €100 per bond, to be issued at par.

Meanwhile, last Wednesday, Tumas Investments plc announced that it received a total of 2,819 applications (including applications under nominee) for a total value of €38,327,100 from holders of Maturing Bonds. In view that the Bond Issue was oversubscribed, hence the Intermediaries' Offer did not take place.

Total Maturing Bonds transferred to the Company in exchange for Bonds amounted to €17,748,900 representing 71% of the Maturing Bonds.  This amount, together with allocating the minimum required application amount of €2,000 for applications whose holding in the Maturing Bond was under this threshold, was allocated in full

Holders of Maturing Bonds that applied for Bonds in excess of their holding in the Maturing Bonds were allocated the first €5,000 in full and 3.665% on the remaining balance rounded to the nearest €100.

The local sovereign debt front curbed this month’s positive streak as out of a total of 25 active issues, the absolute majority amounting to 19 lost ground, four closed higher, while one remained afloat. Despite the negative week mainly experienced in longer dated bonds holding a maturity greater than 15 years, longer dated bonds still managed to register solid gains during the month.