BOV shares partially recoup recent losses
MSE Trading Report for week ending May 23, 2014
The Malta Stock Exchange (MSE) Index registered a decline for the fifth consecutive week as it fell by a further 0.4 per cent throughout this week, closing at 3,406.68 points. Activity was spread across 13 equities of which gainers and losers tallied at five while three closed unchanged. Middlesea Insurance plc shares were the best performers, while Plaza Centres plc shares headed the list of fallers.
Bank of Valletta plc shares ended the week 1.4 per cent or €0.03 higher as 64 deals of 130,501 shares were negotiated. The equity’s share price oscillated between a weekly low of €2.10 and a weekly high of €2.15, at which price it ended the week.
Conversely, HSBC Bank Malta plc shares fell by a minimal 0.1 per cent over 30 trades of 38,007 shares, to close at €2.109. In an interim directors’ statement issued on Monday, the bank reported that during the period January 1, 2014 to May 19, 2014, the bank delivered a result that was below the same period last year. The main factors impacting performance were margin compression, slow loan growth and a reduced contribution from the life insurance business that in the comparative period in 2013 benefitted from a significant one-off gain. There has been a rise in operating expenses as a result of compliance investments and increased regulatory fees. Loan impairments were up on 2013, as the prior year benefited from a number of recoveries, but lower than forecast. Furthermore, the Board of Directors of the bank is scheduled to meet on August 4, 2014 to approve the group’s and the bank’s interim accounts for the half-year ending June 30, 2014 and to consider the declaration of an interim dividend.
FIMBank plc shares slipped by 1.3 per cent across five transactions of 51,654 shares, to close at $0.77. The trade finance bank announced that the Listing Authority has accepted the Bank’s request to remain listed on the MSE notwithstanding that the proportion of the class of ordinary shares in the hands of the public has fallen below the required 25 per cent. Furthermore, the Listing Authority has also indicated that should the level of shares in the hands of the public decrease to 17 per cent as a result of the forthcoming rights issue, this will not prejudice the Bank’s listing on the MSE. This approval is subject to the expectation that the Bank targets the restoration of the shares in public hands to the level of 25 per cent at the first practical opportunity; and the acceptance of the lower threshold is without prejudice to any further measures that the Listing Authority may generally take with regard to listed companies achieving the free float threshold.
On a positive note, Lombard Bank Malta plc shares advanced by 1.3 per cent as 2,248 shares changed ownership across a single deal, closing at €1.51. In its Interim Directors’ Statement the bankannounces that during the period commencing 1 January 2014 to date, no material events and/or transactions have taken place, other than those mentioned in the report and other announcements that would have an impact on the financial position of the Bank or the Group. The bank further statedthat it is expecting to maintain the same levels of its loans and advances portfolio and amounts owed to customers as at the previous year-end. No deterioration of credit quality of its loan book was experienced. Some pressure on interest margins was registered following increased competition in the domestic banking sector. Results from MaltaPost p.l.c. provide encouraging signs of steady development.The bank maintained high liquidity and capital adequacy ratios that exceeded regulatory and prudential requirements. The bank’s business was predominantly based in Malta with no exposure to any overseas sovereign debt. Going forward, the Directors reported that they are satisfied that the Group remains well-positioned to reach the targets set for the first half of this year.
Middlesea Insurance plc (Middlesea) shares appreciated by 2.2 per cent as 3,325 shares changed hands, closing €0.02 higher at €0.92.The company announced that the first quarter of 2014 has been characterised by a satisfactory increase in the group's non-life and life premium volumes and revenues. Performance by the group's investment portfolios, though positive, saw a sharp drop compared to the performance during the comparative quarter of 2013, following modest returns on the international markets and a negative performance by the MSE index during March. Good technical results have been achieved and the Board is confident that these will be maintained as the year develops with group profits remaining susceptible to financial markets movements. The statutory solvency position of Middlesea remains at the levels of December 2013 and in excess of the regulatory requirements.
Similarly, Malta International Airport plc shares fully erased last week’s losses as they strengthened by €0.03 or 1.3 per cent over seven trades of
7,200 shares, to close at €2.28. The local airport operator announced that during the financial year commencing on January 1, 2014 until May 19, 2014, the financial position of the Company has remained sound and the performance has been better than the projected results. Passenger traffic for the first four months of the year reached over 1.03 million movements to achieve an overall growth of 10.3 per cent over the same period last year. This performance was a direct result of a nine per cent increase in seat capacity as aircraft movements reached a total of 8,447. Seat load factor was sustained whilst also registering a one per cent improvement during the first four months to reach an overall average of 74.1 per cent.The outlook for the summer season looks positive albeit at significantly reduced growth rates.
Subject to any unforeseen circumstances, the Directors expect the Company’s financial results for the year will be within the projections made at the beginning of the year.
Plaza Centres plc was the most heavily traded equity for the week in terms of volume as it witnessed a turnover of 138,300 shares. The equity succumbed to selling pressure as it sagged by 5.6 per cent, closing €0.035 lower at €0.59. The company announced that since January 1, 2014 and May 19, 2014, the financial position of the company maintained a satisfactory level of performance. Occupancy during the first quarter increased by 10 per cent compared to the corresponding period in 2013, whilst income and EBIDTA also increased by the same percentage when compared to the first quarter of 2013. The company is presently waiting for MEPA to issue a permit for the refurbishment of the Commercial Centres’ facades in Bisazza Street and Tower Road. Subject to any unforeseen circumstances, the Directors anticipate achieving higher occupancy levels by Q4 in 2014.
On Thursday, International Hotel Investments plc shares traded for the first time since turning ex-dividend. The hoteliers’ equity was active across two trades of 4,650 shares and closed at €0.80, down 4.8 per cent. In the telecommunications industry, GO plc shares decreased by one per cent as 18 deals of 38,478 shares were struck, to close at €1.95. On the other hand, MIDI plc shares appreciated by 0.4 per cent over a single transaction of 5,500 shares, closing at €0.241.
Meanwhile, the non-movers for the week were Medserv plc, RS2 Software plc and Malita Investments plc shares as they all traded flat at €1.30, €2.40 and €0.55 respectively.
In the corporate bond market turnover amounted to €474,896. A total of 18 issues were active, of which two advanced, eight lost ground and another eight closed unchanged. The 5.6% GlobalCapital plc € 2014/16 was the worst performer as it declined by 1.2 per cent, closing at €0.84.
From the sovereign debt front, 24 issues were active, of which five edged higher, 18 fell in value and one closed unchanged. Turnover amounted to over €11.5 million. The long-dated 4.45% MGS 2032 (II) r was the most liquid issue as it reached a turnover of €5.2 million.
On Friday, the treasury announced that it will be issuing new Malta Government Stocks, offering an aggregate of €100 million subject to an over-allotment option of €80 million. The new issue offered to the general public will mature in 2033, having a coupon of 4.3%. The offer price will be announced next Thursday and the applications can be submitted from June 2, 2014 until June 4, 2014 or earlier at the discretion of the Accountant General.