BOV shares extend gains over positive interim results

Following last week’s decline the Malta Stock Exchange (MSE) Index ended the week in a flat position at 3,325.017 points. Despite investors being more inclined towards a bearish mood, in the last session of the week large caps emerged as a key source of support in pushing the index towards pairing its losses. International Hotels Investments plc managed to close the week on a higher note, notwithstanding the initial dip, while Bank of Valletta plc upheld its rally for the third consecutive week. Conversely, Malta International Airport plc shaved further gains from its recent all time highs, while HSBC Bank Malta plc sustained its recent slacking position.

Weekly trading volume reach over one million shares, which were traded across 18 equities, of which five garnered support, six edged lower, while seven closed unchanged. Surprisingly RS2 Software plc had this week’s lion’s share with a remarkable trading value of Eur391,298.

Meanwhile, from the local sovereign debt market, total turnover for the week amounted to just over Eur7.6m as 17 from the 20 active stocks recorded lower yields following the notable gains within major equity markets and as speculation grew that the European Central Bank will revise interest downwards, investors.

From the financial sector, Bank of Valletta plc edged higher with a 1.3 per cent appreciation to close the week at Eur2.30. Clearly, investors expressed their enthusiasm in Friday’s session, as the encouraging interim results pushed the equity towards a buyers market. In fact, on Thursday afternoon the Bank announced its financial statements for the first six months ending March 31, 2013. The BOV Group recorded a profit before tax of Eur64.6m, an increase of 32 per cent over the same comparable period last year. One should note the increase of Eur13.2m in the fair valuation of financial instruments when compared to the Eur0.5m recorded in the previous year following improved market sentiment. The board of directors also proposed an interim dividend of Eur0.039 net of tax to all shareholders appearing on the Bank’s registrar as at close of business on Thursday, May 9, 2013.

On the contrary, sellers re-affirmed control over HSBC Bank Malta plc, as the banking equity headed lower by just below two per cent for the second consecutive week, thus moving towards the Eur2.66 price level. Lack of conviction pushed the equity towards a wobbly week with a loss of 4.1 per cent in two sessions to touch weekly lows of Eur2.60. However the equity managed to partially recuperate the said loss with a 2.3 per cent appreciation in the last session of the week. Total turnover amounted to 38,838 shares which were executed over 13 transactions.

Meanwhile, from the same sector, both Lombard Bank plc and FIMBank plc closed the week unchanged at Eur1.95 and $1.00 after trading at weekly lows of Eur1.90 and highs of $1.02 respectively. The other non-mover was Middlesea Insurance plc which closed flat at Eur0.895.

From the telecommunications sector, GO plc paired last week’s losses with a gain of 2.3 per cent, thus moving back towards the Eur1.58 price level. A total of 39,500 shares were traded over 20 transactions.

In line with its peer, International Hotels Investments plc captured a weekly gain of just below two per cent, after Monday’s remarkable dip. In fact, the hotelier’s equity managed to rebound swiftly with a notable gain of 6.8 per cent in Friday’s session to close the week at Eur0.79.

Likewise, Malita Investment plc recorded a gain of just below two per cent over a single session of 15,000 shares to end the week at the Eur0.52 price value. 

From the I.T sector 6pm Holdings plc rallied for the second week in a row with an additional gain of 8.2 per cent, thus touching the £0.53 price level and thus registering a year-to-date gain of 71 per cent. Conversely, Crimsonwing plc lurched downwards by 3.5 per cent over 26,100 shares to close at Eur0.55.

Meanwhile, RS2 Software plc closed the week flat at Eur1.00 after shifting from highs of Eur1.02 to lows of Eur0.96. On Tuesday the Software Company announced its financial statements for the year ending December 31, 2012, where profit before tax for the Group increased to Eur3.1m when compared to the Eur2.4m registered in 2011. Furthermore, the Board of Directors is recommending a final net dividend of Eur0.02c5 to all shareholders who appear on the company’s registrar as at May 13, 2013. In addition, the board is also recommending a bonus issue of one share for every 16 held. Both resolutions are subject to approval at the Annual General Meeting.

From the aviation industry, Malta International Airport plc declined by a further 2.1 per cent over 9,100 shares to close at Eur1.88, while Midi plc extended its recent downward trend with a loss of 4.8 per cent, thus edging lower towards the Eur0.295.

The other losers for the week were Simonds Farsons Cisk plc which registered a minimal loss of 0.4 per cent over 3,341 shares and Grand Harbour Marina plc which slipped by 2.6 per cent to close at Eur1.86.  

Simonds Farsons Cisk plc announced that for the year ended January 31, 2013 the Group recorded a profit before tax of Eur6.4m up from Eur5.1m in 2012 after revenue jumped to Eur77.2m from Eur70.8m. A final net dividend of Eur0.07 per share will be recommended for the approval of the AGM.

Finally, the other non-movers were Plaza Centres plc, Santumas Shareholdings plc and Maltapost plc.