SFC, MIA & RS2 shares at all-time highs

MSE Trading Report for week ending March 14, 2014

The Malta Stock Exchange (MSE) ended the week in the red as it stumbled by a significant 1.27 per cent, to close at 3,550.529 points. Selling pressure pushed 12 equities lower, one equity remained unchanged while four equities garnered support – three of which reached new highs. A total of 332 deals were executed in the equity market reaching a value of €1.9m.

Simonds Farsons Cisk plc shares advanced by €0.04 or 1.4 per cent over three deals of 3,935 shares, to close at its record high of €3.00. Malta International Airport plc shares rallied 3.7 per cent across 19 trades of 32,115 shares – closing €0.08 higher at a new high of €2.25. Similarly, RS2 Software plc shares advanced by €0.03 over 25 transactions of 71,009 shares, to reach a new all-time high of €2.41.

Investors extended their recent bearish view towards banking equities. Bank of Valletta plc shares took a 3.4 per cent pounding as they plunged by €0.08, to close at €2.25. The banking equity experienced the highest turnover for the week as 153 deals of 397,011 shares were struck. HSBC Bank Malta plc share price fell 0.4 per cent over 32 deals of 100,088 shares, closing at €2.44 – the equity turned ex-div on Thursday.

Lombard Bank Malta plcshares also lagged behind shedding 1.7 per cent of its share price as 12 trades of 19,263 shares were negotiated, to close €0.03 lower at €1.77.  The Board of Directors of the bank approved the audited financial statements for the financial year ended December 31, 2013 and resolved that these financial statements be submitted for the forthcoming Annual General Meeting (AGM), on April 24, 2014. The Group registered a profit before tax of €7 million, compared to €9.4 million registered in 2012. Net interest income for the period under review amounted to €15 million, a rise of 9.2 per cent from 2012. The Board also approved the payment of a final ordinary net dividend of €0.026 per share. This will be paid on April 30, 2014 to shareholders on the company’s registrar of shareholders as at March 25, 2014.  Furthermore, the Board approved a bonus share issue of one share for every 20 shares held, which will be allotted on May 28, 2014 to shareholders on the company’s register of shareholders as at close of business on May 27, 2014. The bonus issue will be funded by a capitalisation of reserves amounting to €0.5 million.

Meanwhile, FIMBank plc share price dropped 5.4 per cent across seven trades of 59,636 shares, closing $0.048 lower at $0.84. On Tuesday, the Board of Directors of the trade finance bank approved the consolidated audited financial statements for the financial year ended December 31, 2013, to be submitted for approval by the shareholders at the AGM scheduled on May 8, 2014. At the meeting, the Board of Directors will not be recommending a dividend, they will however be recommending a one for 10 bonus issue of ordinary shares by way of capitalisation of the share premium account. Shareholders on the registrar at the Central Securities Depository (CSD) of the MSE on April 8, 2014 will be entitled to receive notice of the AGM and the bonus issue. The Group registered a loss before tax of $4.2 million, compared to a $8.8 million profit registered in 2012. Net interest income for the period under review amounted to $15.9 million, a rise of 22.9% from 2012.

On Tuesday,a single transaction of 6,000 shares inIsland Hotels Group Holdings plc declined by 11.1 per cent to close €0.10 lower at €0.80. Meanwhile, MIDI plc shares tumbled by ten per cent across four trades of 18,500 shares, to close at €0.26.The Board of Directors of the company is scheduled to meet on April 28, 2014 to consider and approve the audited financial statements of the company and the group for the financial year ended December 31, 2013.

Conversely, Medserv plc shares advanced by 1.6 per cent across 21 deals of 95,103 shares, closing at €1.30. The company reported that its subsidiary Medserv (Cyprus) Ltd has been awarded a contract for the provision of operational support services to ENI – an Italian oil company – for their forthcoming drilling programme offshore Cyprus. These will be provided from Medserv’s new base at the port of Larnaca in Cyprus. The contract is effective from June 1, 2014 and covers a three year period, with the option to extend for a further two year period.

On Friday,Middlesea Insurance plc shares edged one per cent lower as 4,300 shares changed ownership, closing at €0.99. The Board of Directors of the company approved the audited financial statements for the financial year ended December 31, 2013, to be submitted for the approval of the shareholders at the AGM scheduled for April 29, 2014. The Board of Directors will also recommend the payment of a gross dividend of €0.045 per share which will be paid on May 28, 2014 to the shareholders on the company’s share register at the close of business as at May 6, 2014. The Group registered a profit before tax of €17.3 million, compared to €18 million registered in 2012. Total income from insurance activities for the period amounted to €13.4 million, a decline of 9.4% from 2012. Earnings per share decreased to €0.066.

Crimsonwing plc shares were the only non-movers as they traded flat at €0.81. The I.T. equity was negotiated over 12 deals of 131,410 shares. On the negative side, MaltaPost plc shares shed 1.8 per cent as 5,641 shares exchanged hands, to close at €1.10. Similarly, Plaza Centres plc shares slipped 1.7 per cent across a single deal of 2,000 shares, closing at €0.59.

Grand Harbour Marina plc shares lost 0.1 per cent over three transactions of 9,600 shares, to close at €1.818. The Board of Directors approved a net interim dividend of €0.084 per share equivalent to €840,000 for payment on all shares settled as at close of business on March 21, 2014 and payable by not later than April 15, 2014.

GO plcshares declined by a marginal 0.2 per cent across 22 trades of 72,682 shares, to close at€2.09. Meanwhile, 10 transactions of 59,000 sharesin Malita Investments plc led to a slight drop of 0.4 per cent to close at €0.54.

In the corporate bond market turnover amounted to €566,722 spread across 22 issues, of which six decreased, seven edged higher and nine closed the week unchanged. Meanwhile, activity in the sovereign debt market was spread over 23 issues, of which 13 fell in value while ten gained ground. The 4.5% MGS 2028 (II) was the most liquid issue for the week as it witnessed a traded value of €745k. Total trading in this market dropped to €2.8m from €21.7m traded last week.