BOV scrip dividend price set at €1.667

MSE Trading Report for week ending April 13, 2018

The MSE Equity Total Return Index posted marginal gains this week, despite the fact that the prices of eight equities closed lower, and only one traded in positive territory. In fact this week’s turnaround was the result of the Index taking account of Bank of Valletta plc (BOV) and GO plc turning ex-dividend. The index advanced by 0.285% to end the week at 8,580.659 points. A total of 15 issues were active during the week, generating a total turnover of €1.8 million spread over 202 transactions.

In the banking industry, Bank of Valletta plc provided information to the market on Thursday regarding the Scrip Dividend Programme. Subject to approval at the Annual General Meeting, shareholders on the register as at April 10, 2018, have the option to receive their dividend either in cash, or by the issue of new shares at a price which has now been established at €1.667. The attribution price was calculated by applying a 5% discount on the three-day trade weighted average share price, based on trading effected between April 9 and April 11, 2018. The equity turned ex-dividend on Monday, and as a result, the share price dropped significantly on Monday, before recovering to a more modest loss of 1.39% to a price of €1.77. Trading volume amounted to 268,957 shares spread across 67 transactions.

Its peer, HSBC Bank Malta plc held its Annual General Meeting on Thursday, in which all resolutions on the agenda were approved. The Chief Executive Officer, Mr. Andrew Beane gave an overview of the results of 2017 and explained the bank’s strategy to grow the business in Malta, as approved by the Board of Directors in February. Mr. Beane also clarified that the bank is operating on a business as usual basis, in spite of the recent media reports suggesting that HSBC Holdings plc is considering exiting the Maltese market. He also reiterated that in line with the bank’s policy, the board does not comment on media speculation. The equity was traded heavily as 230,036 shares changed hands over 62 deals. The outcome was a 0.58% price decline to €1.71, having traded at a low of €1.64.

In the same sector, FIMBank plc was the only positive mover on the Malta Stock Exchange, putting on 2.8% to close at $0.55. The equity was traded twice as 50,520 shares traded. By Wednesday eligible shareholders have to decide whether to participate in the rights issue and thus subscribe for their entitled 2 new ordinary shares for every 3 ordinary shares held in their possession at a subscription price of $0.55. Lapsed rights will be offered through an Intermediaries offer thereafter.

Malta International Airport plc moved in the opposite direction, falling by a minimal 0.41% to close at a two-month low of €4.88. A volume of 24,659 shares was transacted over 11 deals.

The telecommunications company, GO plc, which turned ex-dividend on Thursday, traded eight times as 31,923 shares were exchanged. The equity was the worst performer this week as it slumped 2.78% to close at €3.50.

On Tuesday, International Hotel Investments plc announced that it has completed the acquisition of the Corinthia Palace Hotel located in Attard. The 50-year old hotel is currently undergoing an extensive refurbishment process on its 150 rooms, the back-of-house areas and the spa and gym facilities. Eight deals of 115,227 shares struck on Monday and Wednesday cancelled each other out as the equity ultimately closed unchanged at €0.62.

MaltaPost plc traded seven times, albeit on slim volumes, closing 0.54% lower at a price of €1.85.

In the insurance industry, Mapfre Middlesea plc traded rather heavily as 44,139 shares were exchanged over a couple of deals. Both deals were executed at last week’s closing price of €2.10.

Retail conglomerate PG plc closed unchanged at €1.31 despite a traded volume of 96,900 shares over nine transactions.

Medserv plc surrendered most of the previous week’s gain as it fell 2.63%, down to €1.11 over a single trade on slim volume.

In the food and beverages sector, Simonds Farsons Cisk plc was down by 0.72% to €6.85 as a result of 10 deals of a combined 17,273 shares.

In the property sector, Malta Properties Company plc extended its negative streak to three successive weeks as it fell by a further 0.87% to end the week at €0.458. A total of three deals of 31,560 shares were registered.On Thursday, the company announced that its forthcoming Annual General Meeting will be held on June 13, 2018.

A single transaction of 500 Plaza Centres plc shares had no impact on the equity’s price of €1.02.

Similarly, Trident Estates plc closed unchanged at €1.90 as two trades of 10,000 shares were recorded.

Opposing performances on Wednesday and Friday were registered by Malita Investments plc, which ultimately also closed unchanged at €0.84 despite trading heavily. In fact, a considerable 224,550 shares changed hands over nine transactions.

In the corporate debt market, a total of 33 issues were active during the week, generating a turnover of €1.2 million over 169 deals. Gainers outweighed fallers as 15 bonds registered an increase in value, and only eight edged lower.

The 6% Medserv plc Secured & Guaranteed Notes 2020-2023 S1 T1 headed the list of fallers as a negative price movement of 1.39% was recorded, closing at €106.01.

On a positive note, the 5% GlobalCapital plc Unsecured € 2021 recovered almost all of the previous week’s loss as it soared 2.81% to €99.73.

Similarly, the 4.4% Central Business Centres plc Unsecured € 2027 S1/17 T1 enjoyed a strong week as it was up by 2.33% to a price of €103.10.

Yields in the sovereign debt market were up as from the 25 active issues, 23 issues traded lower while the rest headed north. A total turnover of €2.5 million was generated over 118 transactions in the Malta Government Stocks market.

The longer dated issues posted the largest losses in value, particularly the 4.3% MGS 2033 (I) which drifted 1.05% lower to €132.02.

The most liquid issue was the 2.3% MGS 2029 as it generated a turnover of €452,110 over 11 trades. The outcome was a price decline of 50 basis points.

The 1.5% MGS 2027 (I) and the 5.5% MGS 2023 (I) were the only two exceptions having gained 1.34% and 0.2% respectively.