GO shares rally by 7.8%

MSE Trading Report for week ending July 7, 2014

The Malta Stock Exchange (MSE) Index finally halted its recent losing streak as it closed 0.53 per cent higher at 3,327.349 points. Activity was spread across 16 equities as gainers and losers tallied at five while six closed unchanged. GO plc (GO) shares posted the most solid gain for the week, while Santumas Shareholdings plc (Santumas) shares were the worst performers.

On Tuesday morning, GO reported that Forthnet S.A. – the Greek telecommunications company in which GO has indirect equity –  issued an announcement notifying the market that it had received a non-binding offer by OTE S.A. for the acquisition of the activity of NOVA ( Forthnet’s pay TV operations), for a consideration ranging between €250 and €300 million, on a debt-free cash-free basis. The offer is based on certain assumptions and is subject to terms and conditions, customary to such transactions. The Board of Directors of Forthnet S.A., following the rules of corporate governance, will evaluate the offer and inform the investing public accordingly. Following this announcement, the share price of GO plc appreciated during every session ending the week with a significant gain of €0.16 or 7.8 per cent as 35 deals of 103,480 shares were struck, closing at €2.20 – a price last reached in February 2010.

In the banking industry, HSBC Bank Malta plc was the only equity to register a change in its share price. A one per cent increase was registered in this equity as 14 trades of 19,792 shares were negotiated, to close at €2.032.

Meanwhile, both Bank of Valletta plc and Lombard Bank Malta plc shares closed the week unchanged at €2.05 and €1.465 respectively albeit on differing volumes. The former witnessed the highest turnover for the week of 136,413 shares, while the latter witnessed a sole transaction of 1,000 shares.

The local airport operator Malta International Airport plc shares fell by 3.1 per cent by Wednesday’s session while a total of 14,960 shares changed ownership, closing €0.07 lower at €2.22. In itstraffic results, released after trading hours on Thursday, the company announced that in 2014 it had already welcomed over 1.8 million passengers – an increase of 7.7 per cent when compared to the same period in 2013. Positive results were registered in all source markets with France registering the highest growth of 17.9 per cent. Meanwhile, the UK remains the largest market maintaining top position with a growth of 6.7 per cent. In June, the number of passengers increased by three per cent in comparison to June 2013. Seat capacity and aircraft movements increased by 4.1 per cent and 5.3 per cent respectively, while seat load factor reduced minimally by 0.8 per cent.

Investors proved bearish towards the I.T. industry as all of the I.T. equities active this week registered a decline. Namely, Crimsonwing plc shares shed 3.6 per cent of its share price as 11,802 shares changed hands across four deals, closing €0.03 lower at €0.81. Likewise, RS2 Software plc shares added on to last week’s declines as it fell by a further €0.051 or 1.9 per cent over three trades of 2,500 shares, to close at €2.599.  Moreover, 6PM Holdings plc shares slipped by 1.3 per cent across two transactions of 2,480 shares, closing at £0.74.

During Tuesday’s session,Santumas Shareholdings plc shares dropped by 7.5 per cent on two deals of 4,205 shares, to close €0.15 lower at €1.85. Conversely, Malita Investments plc shares closed at an all-time high of €0.56. The equity was active on Friday across two trades of 8,910 shares.

Grand Harbour Marina plc shares advanced by €0.05 on a single deal of 1,000 shares negotiated at €1.87, closing 2.8 per cent higher. Similarly, Medserv plc shares edged 2.5 per cent higher over seven transactions of 169,560 shares, to close €0.03 higher at €1.25.

The other non-movers for the week were Middlesea Insurance plc, Simonds Farsons Cisk plc, International Hotel Investments plc and MIDI plc on mixed volumes.

In the corporate bond market turnover amounted to €1.25 million, spread across 21 issues of which nine gained ground, three declined and nine closed unchanged. Mariner Finance plc announced its allocation policy for the 5.3% €30 million (with an over-allotment option of €5 million) bond with a 5.3% coupon maturing on July 3, 2024. The company shall be satisfying all applications under the general public offer for amounts up to and including €5,000 in full and in the case of applications for amounts over €5,000 the company will likewise be satisfying the first €5,000 and allocating a further 19.475 per cent of the remaining balance of all such applications. All amounts being allocated have been rounded to the nearest €100. Refunds of unallocated monies will be effected by not later than next Monday. The bond will be admitted to listing on the MSE on Tuesday and trading will commence on Wednesday. Interest on the Bonds is being accrued as from July 4, 2014. 

Meanwhile, Tumas Investments plc has submitted an application to the Listing Authority requesting the admissibility to listing of €25 million in bonds redeemable in 2024. The new bonds shall have a nominal value of €100 and will be issued at €100 per bond. These bonds will be guaranteed by Spinola Development Company Limited. The net proceeds of the new bonds shall be used by the company to finance the redemption of the €25 million6.25% Tumas Investments plc bonds 2014-2016, which will be redeemed on the first available redemption date, being July 31, 2014. The company will be granting holders of the maturing bonds as at June 30, 2014 preference to subscribe to the new bonds by exchanging their maturing bonds with the new bonds. New bonds applied for by way of exchange offer shall be allocated in full, rounded to the nearest €100, subject to a minimum application of €2,000. Holders of the €25 million 6.2% Tumas Investments plc Bonds 2017-2020 as at June 30 2014 will also be offered the opportunity to invest in the new bonds in respect of the balance unsubscribed to by holders of the maturing bonds. No preference or guarantee of an allotment can be given in respect of applications by holders of the maturing bonds in excess of the maturing bonds held at June 30, 2014 or by holders of the 2017-2020 bonds. Furthermore, any balance of the new bonds which remains unsubscribed to shall be made available to authorised intermediaries through an intermediaries offer. 

Finally, in the sovereign debt market 23 issues were active of which eight decreased and 15 strengthened in value. Turnover amounted to just under €6 million. The recently issued 4.3% MGS 2033 (I) r was the most liquid issue as it witnessed a trading value of €2.6m.