Sovereigns surge in line with European peers
MSE Trading Report for week endingJuly212017
On Thursday, Mario Draghi President of the European Central Bank made dovish remarks, in an effort to convince investors he was in no rush to rein in the European Central Bank’s €60 million per month economic stimulus programme. The President’s remarks left a positive impact on the Sovereign Bond price in European markets.
The local sovereign debt followed its European peers as out of the 22 active issues, the absolute majority amounting to 18 closed higher, while three lost ground and one closed unchanged. Long dated sovereigns holding a maturity greater than 10 year registered the largest gains ranging from 0.41 to 2.57 per cent. The 2.2% MGS 2035 (I) r registered the best performance during the week as the price increased by 2.57 per cent to close at €104.17.
The majority of local corporate bonds closed unchanged as out of 43 issues, 17 closed flat, 15 lost ground, while 11 headed north. The 6% Medserv plc Sec. & Grntd € Notes 2020-2023 S1 T1 3 registered the worst performance during the week as the price of the bond fell by 2.64 per cent to close at €107.
On Wednesday, Simonds Farsons Cisk plc announced that the Board resolved to early-redeem the 6% Simonds Farsons Cisk plc 2017 – 2020 on September 13, 2017, ahead of suspension of trading on July 31, 2017. Furthermore, the Company announces that it has resolved that an application be submitted to the Listing Authority of the Malta Financial Services Authority requesting the admissibility to listing of €20 million Simonds Farsons Cisk plc Unsecured Bonds 2027, and for an application to the Malta Stock Exchange for the new Bonds to be admitted to the Official List of the Exchange.
Meanwhile, in the Prospects market a single trade of 5,000 nominal in Orion Finance 4.75 per cent 2027 Unsecured was registered to close at €101.01.
The MSE index erased last week’s decline as the index gained 0.205 per cent to close at 4,730.203 points. A total of 18 equities were active during the week of which eight headed north, six closed lower and four closed unchanged. Total turnover dipped from €1.705 million to €0.982 million.
In the banking sector, both Bank of Valletta plc and HSBC Bank Malta plc closed the week in the red. HSBC Bank Malta plc shares was the worst performer during the week as the equity hit a 6-week-low intra-week at €2.02 to close the week at €2.05. Bank of Valletta plc shares followed suit as the equity lost 0.69 per cent of its value to close the session at €2.16. The equity registered a turnover of €199,817 during the week spread over 51 transactions.
On the same note, Lombard Bank plc shares was the weeks worst performer in the banking sector as the equity lost 1.06 per cent of its value to close the week at €2.34 – over a single trade on slim volume.
In contrast to last week, FIMBank plc registered the best performance among its banking counterparts as the equity added on two per cent to its value to close at $0.76, as 18,777 shares changed hands.
GO plcshares extended last week’s positive run as the equity climbed to its highest levels since February 2016 as it touched the €3.60 price level intra-week to close at €3.599. Total turnover amounted to €78,471 spread between six trades.
On the same note, International Hotel Investments plc shares started off the week on a positive note as the equity advanced by 3.33 per cent, keeping the same price level throughout the week to close at €0.62. A total of 11 deals saw 63,314 shares exchanged.
Similarly, RS2 Software plc shares fully recouped last week’s lost ground as the equity rose by 0.54 per cent at €1.85. A total of 17 transactions managed to generate €58,439.
Malta International Airport plcshares registered the highest turnover during the week as 24 deals generated a turnover of €251,586. The equity closed the week at a near 4-week-low at €4.10.
On a positive note, PG plc reached a fresh all-time-high at €1.34 – as 11 trades saw 19,500 shares changing hands. Meanwhile, Santumas Shareholdings plc shares also reached a fresh all-time high at €2.149 – on three trades over a slim volume.
In the property sector, Malta Properties Company plc shares outperformed its peers as the equity advanced by 3.53 per cent to close the week at €0.528. MIDI plc shares followed suit as the equity gained 1.29 per cent to close at €0.314.
On Wednesday, the Board of Directors of Plaza Centres plc approved the Group’s Unaudited Financial Statements for the six months ended June 30, 2017. The Group reported a profit before tax of €798,860 during the reported period, a decrease of 2.5 per cent when compared to the same period last year,mainly due to the increase in finance costs attributed to the loan and bond interest to finance the investment in Tigne Place. Meanwhile, profit after tax increased by 16.4% as a result of the fact that the Company is benefitting from better tax regime. As a resultearnings per share (EPS) increased from 1c8 in the first six months of 2016 to 2c1 in the same period this year. In line with the Group’s policy, the Board of Directors does not propose the payment of an interim dividend. Despite the announcement the equity remained inactive during the week.
On Thursday, Tigne Mall plc announced that the Board of Directors is scheduled to meet on Thursday August 10, 2017 to consider and approve the condensed interim financial statements for the half year ending June 30, 2017 and to consider the declaration of interim dividend. The equity traded six times during the week to close two per cent lower at €0.96.
In the same sector, Malita Investments plc shares traded on intra-day lows of €0.68 to highs of €0.72, to close the week 1.37 per cent lower at €0.72.
Elsewhere, Mapfre Middlesea plc, Global Capital plc, Grand Harbour Marina plc and Medserv plc, all closed unchanged at €1.87, €0.34, €0.895 and €1.275 respectively, on low trading volume.