Banking equities drag Index into negative territory
MSE Trading Report for week ending February 21, 2014
The Malta Stock Exchange (MSE) halted its four-week gaining streak as it declined by 0.95 per cent this week, to close at 3,684.305 points. Activity was spread across 13 equities of which eight fell, two edged higher and two closed unchanged. Turnover in the equity market remained constant with last week’s level at €696k. Island Hotels Group Holdings plc (IHG) shares headed the list of gainers, while Middlesea Insurance plc (Middlesea) shares were the worst performers.
Investors proved bearish towards the banking industry as three out of four banking equities registered a decline in their share price. FIMBank plc shares plunged by 3.2 per cent or $0.03 across two trades of 3,095 shares, closing at $0.90. The trade finance bank reported that FIMFactors, a wholly-owned subsidiary of the bank, has purchased 2,682,260 shares, equivalent to 40 per cent of the shares in the capital of CIS Factors Holding B.V. FIMFactors now holds 80 per cent of the ordinary shares of CIS Factors Holding B.V. The remaining 20 per cent is held by International Finance Corporation (IFC), part of the World Bank Group. This acquisition forms part of FIMBank’s Group strategy to further develop and strengthen its international network in the factoring business.
Similarly, HSBC Bank Malta plc shed 1.9 per cent of its share price as 30 trades of 39,290 shares were negotiated, to close €0.05 lower at €2.55.The bank announced that regulatory approval for the appointment of Ms Decca Fung-Chu Fan as Chief Operating Officer (COO) of the bank has been obtained. She will be appointed COO of the bank with effect from March 1, 2014. The bank’s financial results for 2013 are due to be announced next Monday February 24, 2014.
Bank of Valletta plc shares slipped by 0.8 per cent over the highest volume this week of 99,472 shares spread across 52 trades to close at €2.46. Meanwhile, Lombard Bank Malta plc was the only banking equity that maintained last week’s share price, as it traded unchanged at €1.85 over a single transaction of 3,000 shares on Friday.
The 5.6 per cent gain registered in Island Hotels Group shares was this week’s main highlight. Five trades of 16,799 shares were dealt on the last two days of the week, closing €0.05 higher at €0.95. On Friday, the company’s board of directors approved the financial statements for the year ended October 31, 2013. The Group registered a profit before tax of €554,719 for the year ended October 31, 2013, compared to a loss of €989,272 registered in 2012. Revenue for the period amounted to just under €35.3 million, a rise of 6.6% from 2012. Earnings per share increased to €0.015. The directors did not recommend the payment of a dividend. Through its joint venture with Buttigieg Holdings Limited, the company has been awarded a tender for the exclusive rights to develop the Costa Coffee brand in Spain –East Coast, the Balearic Islands and the Canary Islands. The agreement allows the company to open and develop 75 shops in Spain over the coming five years. In another announcement on Thursday, the company advised that it has entered into a promise of sale agreement for the sale of its shares in Coastline Hotel Limited to Claret Holdings Limited. The completion of the sale for a gross price of €14 million is expected to be concluded by April 25, 2014 and is conditional on the procurement of bank finance and clearance being received by the Director General under the control of concentrations regulations.
RS2 Software plc shares declined by a slight 0.1 per cent over 11 deals of 32,910 shares, to close at €2.363. On Thursday, the company declared that it has signed a license agreement with OKQ8 in Sweden for an indefinite period, and RS2 will be receiving a monthly fixed fee for granting the use of its BankWORKS system. Meanwhile, Crimsonwing plc shares closed the week unchanged at €0.82, despite having reached a weekly high of €0.84 on a volume of 54,512 shares. The other non-mover for the week was International Hotel Investments plc as it traded flat at €0.88 over four transactions of 5,934 shares.
GO plc shares advanced by one per cent over 25 deals of 41,200 shares, to re-touch the €2.10 price level. Conversely, SimondsFarsons Cisk plc shares dropped by 1.7 per cent as 11,398 shares changed ownership across nine deals, to close €0.05 lower at €2.95. On Friday, the Board of Directors of the company approved the investment of €27 million in a new beer packaging facility. The construction of the facility is expected to commence in April and to be completed by April 2016.
Also on a negative note, Middlesea shares stumbled by a significant €0.063 or 6.3 per cent as four deals of 11,708 shares were struck, to close at €0.937. The local airport operator, Malta International Airport plc’s share price took a 1.2 per cent dip as it closed at its weekly low of €2.15. Trading in this equity reached a volume of 25,745 shares across 14 deals. Likewise, Malita Investments plc slipped by 0.9 per cent over five transactions of 22,170 shares, to close at €0.545. The company’s Annual General meeting is scheduled to be held on April 9, 2014.
In the corporate bond market activity was spread across 21 issues, as total value declined substantially to €291,195 from €1.2m traded last week. The most liquid issue for the week was the 4.25% BOV € Notes 2019 Series 2 Tranche 1 as it witnessed a turnover of almost €70k. On the other hand, in the sovereign debt market turnover soared to €22.9 million over 24 issues, of which 13 decreased, eight gained ground and three closed unchanged. The most liquid issue was the long-dated 4.65% MGS 2032 (I) with €7.5m traded.
Meanwhile, the prices of the new Malta Government Stocks maturing in 2019, 2024 and 2032, having a coupon of 3.2%, 3.3% and 4.45% respectively, have been issued at €105.50, €100.25 and €100.25 respectively. Applications to the public open on Monday and will close on Wednesday or earlier at the discretion of the Accountant General.