Index up 10.2 % year-to-date

MSE Trading Report for week ending November 15, 2013

The Malta Stock Exchange (MSE) Index added 0.18 per cent onto last week’s 1.52 per cent gain, with nine traded equities beating the index’s performance, and the remaining five closing the week in the red. The index’s current level of 3,539.863 points marks a year-to-date gain of 10.2 per cent. The index ended higher primarily as a result of notable gains in GO plc and International Hotel Investments plc (IHI) shares, followed by advances in IT companies, RS2 Software plc (RS2) and 6PM Holdings plc (6PM), as the four companies represent just under 20 per cent of the index in terms of weighted market value.

Declines registered in Malta International Airport plc (MIA) and Bank of Valletta plc (BOV) shares, stymied the index from climbing further, as the latter traded ex-div during Friday’s session.

Turnover increased by just over 60 per cent to €1.6mwhen compared to last week, with a total of 856,768 shares changing hands, with the bulk of trading taking place in BOV and RS2 shares.

In the sovereign debt market, turnover continued to decrease, as the 21 issues active during the week totalled €4.9m compared to last week’s €14.8m. Twelve issues gained terrain, among which was the recently listed 4.65% MGS 2032 (I), closing the week 0.9 per cent higher at €101.15. Another eight issues declined marginally, while one closed unchanged.

On the corporate bond front, 22 issues were active, with volume soaring to €679k – almost three times last week’s €179k. Gainers and losers tallied at seven, while eight issues closed the week unchanged. Following the oversubscription of the €10m 5.8% International Hotel Investments plc Bonds 2013 by applications from holders of the maturing 6.5% Bonds on November 8, the company announced that it will be satisfying all applications received for amounts up to €100k in full, and a further 66.835% of the remaining balance. As a result of the demand from existing bond holders the Intermediaries’ Offer was cancelled.    

Throughout the week, a number of interim directors’ statements were issued, following the publishing of most companies’ interim financial results as at June 30, 2013. In its report, MIA reported that the financial position of the company remained stable, with no material events or transactions taking place. The company is forecasting further improvement in traffic results for the coming two months. MIA shares were traded over 7 deals of 12,300 shares, failing to sustain last week’s all time high of €2.14, as it contracted by 1.9 per cent to €2.10 – albeit the positive traffic results for the month of October.

A similar announcement was made by Tigne Mall plc, with finance costs decreasing by 14 per cent, as proceeds from the IPO held in April 2013 were applied to reduce the company’s bank loans by €6.5m. Its share price started the week 2.3 per cent lower, followed by a one per cent recovery towards the end of the week, to finally close 1.4 per cent lower at €0.505 on a volume of 179,000 shares.

In the IT sector, RS2 Software plc (RS2) traded over 37 transactions of 181,916 shares, representing 21 per cent of total trading volume. RS2’s share price closed the week 2.2 per cent higher at an all-time high of €2.35. The directors’ interim report published on Thursday, inter alia, stated that the company’s prospects with regards to agreements with new clients are expected to be concluded and signed in 2014. The company is also considering the opening of a new business presence – sales and support office – in the Latin American market in the coming year.

6PM Holdings plc (6PM)reported on Thursday that the company’s growth is in line with its projections, and the directors are focused on profits, to be in a position to recommend a dividend in the forthcoming Annual General Meeting (AGM). 6PM’s business plan for 2014 is to take on new investments while infiltrating new markets – and therefore diversifying the company’s overall exposure. These positive comments bolstered its share price, as 9,424 shares dealt on Friday pushed the price 4.1 per cent higher to £0.63 – a 46-month high.

In the banking sector, interest in BOV shares thrived prior to Friday’s session – in time for entitlement to the company’s €0.13 gross dividend per share. The equity’s 1.2 per cent drop to €2.629 was primarily the result of a 1.9 per cent decline registered during Friday’s session, when the equity traded ex-div and therefore with no entitlement to the dividend payment. Trading in BOV shares represented 40.9 per cent of total value – traded over 95 deals of 249,303 shares.

Meanwhile, Lombard Bank plc posted a 1.5 per cent loss to €1.87 on two deals of 4,734 shares. After closing of Friday’s trading session, the company published the interim directors’ statement, pointing out that group results are expected to be impacted by higher credit impairment allowances, resulting from sectorial exposures in view of anticipated changes in local and European regulation.  On the contrary, HSBC Bank Malta plc shares put on 0.4 per cent to €2.66, dealt across 21 trades of 70,270 shares.

Middlesea Insurance plcreversed last week’s 2.4 per cent decline, to return to the €0.85 price level.

The share price of Simonds Farsons Cisk plc (SFC) landed onto new highs, sustaining a steep upward trend since February 2012. The equity saw an increase in price of 1.8 per cent to €2.90 after witnessing 3 deals of 10,000 shares.

GO plc shares marked a three-week winning streak, to close 2.6 per cent higher at €1.58. The stock was active throughout the week, with 104,926 shares changing hands over 18 deals. 

International Hotel Investments plcshares continued to recover some of the losses registered during the months of August to October, as a single transaction struck on Monday pushed the equity 1.3 per cent higher to €0.77.

Substantial gains were also registered in MaltaPost plc, closing 2.8 per cent higher at an all-time high of €1.12 over two trades of 8,000 shares.

Malita Investments plcclosed the week at €0.532 – just shy of last week’s all-time high of €0.533.

Plaza Centres plcrose marginally by 0.9 per cent to €0.565 – dealt over two trades of 4,775 shares.