Longer-dated Sovereigns continue to tumble
MSE Trading Report for week ending September 15, 2017
The local Sovereign Debt market was in the limelight during the week as longer dated sovereign debt headed the list of the weakest performers. A total of 21 issues were active of which the absolute majority amounting to 16 lost ground, while three shorter-dated issues headed north. Bonds holding a maturity greater than 10 years registered declines of between 0.2% and 1.25%. The 0.14% gain registered last week on the 2.4% MGS 2041 (I) r was fully erased as the bond price lost 1.1% of its value to close at €103.20. Total turnover in this market declined from €4.82 million to €3.98 million.
During a public pre-budget consultation meeting the Minister of Finance, Prof. Edward Scicluna announced that pensions who missed out on the 62+ Government Savings Bond will have a second chance from this scheme as a further €30million will be offered. This was once well received by pensioners.
In the corporate debt market a total of 29 issues were active during the week, as gainers and losers tallied to 12. The 3.75% Tumas Investments plc Unsecured € 2027, curbed almost a quarter of last week’s advancement as the bond price declined by one per cent to close at €103.50. On the other hand, 5% Mediterranean Investment Holdings plc Unsecured € 2022, recovered the majority of last week’s decline, as the bond price increased by 0.9% to close at €104.25.
Last week’s MSE Equity Total Return Index advancement was cancelled out, as the index fell by 0.39% to close the session at 8,914.649 points. A total of 17 equities were active during the week of which eight headed south, while four gained ground. Total turnover almost tripled week-on-week as it spiked from €1.33 million to €3.53million.
In the banking industry, prices remained relatively unchanged with the only mover being Bank of Valletta plc as the equity lost 0.5% of its value to close the week at €2.09. Total turnover amounted to €180,584 spread over 52 transactions.
On July 28, 2017 the companyhad announced that during the Extraordinary General Meeting held on July 27,2017, the shareholders had considered and approved that the authorised share capital of the company be increased from €500million to €1,000million – this has now received the respective regulatory approval issued by the European Central Bank.
Its peers, HSBC Bank Malta plc and FIMBank plc shares remained unchanged, with the latter trading on a slim volume over a single trade. The equities close the week at €1.92 and $0.75 respectively.
Insurance firm Mapfre Middlesea plc traded five times during the week, as 7,400 shares exchanged hands. Despite the activity, the equity closed flat at €1.88.
In the telecommunications sector, GO plc shares fully reversed last week’s gain as the equity lost 1.4 per cent of its value to close at €3.55. A total of five trades managed to generate a turnover of €60,938.
International Hotel Investment plc shares hit its lowest point in almost two and a half years, as the equity hit the €0.58 price level intra-week. Despite this decline the equity rebounded during Thursday’s session to close 1.3% higher at €0.609.
Malta International Airport plcshares swayed between the €4.19 and the €4.28 price level during intra-week trading to close the week at €4.25 on the highest turnover of €1.49million.
In the oil and gas sector, Medserv plc shares dipped by 10.1% to close the week at €1.20 – nearing a six-week low. A total of eight trades managed to generate a total turnover of €57,573.
Maltapost plcshares followed suit as two trades on Wednesday amounting to 4,099 shares saw the price shrink by 4% – hitting a 2017 low, closing at €1.90.
In the food and beverage industry, Simonds Farsons Cisk plc shares reached a fresh all-time high at €8.55.
Last Wednesday, Simonds Farsons Cisk plc announced the basis of acceptance for the €20 million 3.50% Unsecured Bonds 2027. The company received a total of 3,215 applications for an aggregate value of €49.3m, from holders of the maturing bonds. Such holders were given a guaranteed allocation on subscription to the New SFC Bonds by surrendering their respective maturing bonds. Furthermore, holders of the maturing bonds, were given a preference for allocation to any additional New SFC Bonds applied for. The New SFC bonds are expected to be admitted to listing on the Official List of the Malta Stock Exchange on September 18, 2017 and trading is expected to commence on September 19, 2017.
In the retail conglomerate sector, PG plc shares also reached a fresh all-time high during intra-week trading at €1.41, but failed to maintain this price level to close at €1.409, as 11 trades managed to generate a total turnover of €58,163.
On a negative note, RS2 Software plc shares closed the week in the red as the equity lost 2% of its value to close the session at €1.74. A total of 14 trades saw 70,733 shares exchange hands.
Meanwhile, in the property sector the majority of the active issues lost ground, while two closed flat. Malta Properties Company plc topped the list of fallers as the equity closed 2.1% lower at €0.519 on low turnover.
Its peer, Tigne Mall plc shares followed suit trading on abnormal volumes as the nine trades generated a turnover of €1.24million, to close at €0.96.
Property counterpart, Malita Investments plc closed marginally lower as the price declined by 0.1% to close at €0.749.
Meanwhile Plaza Centres plc and MIDI plc failed to veer despite being active to close at €1.05 and €0.31 respectively.