MSE Index maintains positive stance
MSE Trading Report for week ending September 5, 2014
The Malta Stock Exchange (MSE) Index registered five consecutive days of gains, closing the week 1.88 per cent higher at 3,357.495 points. Activity was spread across 17 equities of which eight gained ground, two fell and seven closed unchanged. Bank of Valletta plc (BOV) shares were the best performers, while Tigne Mall plc (TML) shares headed the list of fallers.
BOV shares witnessed the highest turnover by value over the week, amounting to €242,890. The banking equity added on to last week’s gains as it increased by a further 4.9 per cent having oscillated between a weekly low of €2.15 and a weekly high of €2.265, to ultimately close at €2.26.
Similarly, HSBC Bank Malta plc shares registered a gain for the fourth consecutive week having advanced by a further two per cent over 13 transactions of 30,181 shares, to close at its weekly high of €2.04. Likewise, Lombard Bank Malta plc shares appreciated by €0.04 or 2.6 per cent across four deals of 11,313 shares, closing at €1.60. Meanwhile, FIMBank plc shares closed unchanged at $0.655 as five trades of 25,485 shares were struck.
GO plc (GO) shares rose by a marginal 0.04 per cent across 10 deals of 41,069 shares, closing at €2.49. GO is the best performing equity so far this year having rallied by 36.4 per cent throughout 2014. The telecommunications company announced that it has obtained regulatory approval from the Competition Authority in Cyprus to proceed with the implementation of the share purchase agreement for the purchase of 25 per cent of the issued share capital of Cablenet Communications Systems Limited (Cablenet) from Mr. Shiacolas. In the said share purchase agreement the company agreed to provide a loan to Cablenet for an amount of €12 million convertible into equity at the option of the company so that upon such conversion the total number of shares held by GO will be equal to 45 per cent of the issued share capital of Cablenet. The share purchase agreement also grants GO an option to acquire majority control in Cablenet in the future.
Malta International Airport plc (MIA) shares soared by €0.05 or 2.2 per cent across two transactions of 2,300 shares, closing at €2.30. The local airport operator hosted 8.6 per cent more passengers in August than it did during the same month last year, making this the busiest month in history. In August 2014, MIA welcomed a total of 551,179 passengers, which is equivalent to a 100,000 more people than the entire Maltese population.This growth was the result of an exceptional increase in the number of aircraft seats being taken up, resulting in a seat load factor of 86.5 per cent. The seat capacity, also increased by 6.6 per cent, while flight movements rose by 5.1 per cent. Italy was the highest growth market as it witnessed an increase of 16.5 per cent in passenger traffic. This was due to the new routes added for the summer period. Meanwhile, traffic from Germany and France grew by 10.4 per cent and 9.1 per cent respectively, followed by the UK, which grew by 8.7 per cent. Between January and August, MIA hosted more than 2.9 million passengers marking an eight per cent increase over the same months last year.
In the I.T. sector, RS2 Software plc shares climbed by a further €0.04 or 1.5 per cent over five deals of 5,104 shares, to close at a record high of €2.79. Meanwhile, both 6PM Holdings plc and Crimsonwing plc shares closed the week unchanged at £0.72 and €0.81 respectively. The former was negotiated across a sole transaction of 1,340 shares, while the latter was executed over one trade of 1,100 shares.
The other non-movers for the week were Middlesea Insurance plc, International Hotel Investments plc, GlobalCapital plc and Medserv plc shares as they all closed unchanged at €0.93, €0.64, €0.80 and €1.275 respectively.
On a negative note, Tigne Mall plc shares slid by 1.9 per cent over six trades of 255,000 shares, closing at €0.515. Likewise, a Plaza Centres plc share slipped by 1.7 per cent as a single transaction of 160,000 shares was processed, to close at €0.59.
Simonds Farsons Cisk plc shares partially recouped last week’s losses as they edged 0.4 per cent higher over one deal of a mere 394 shares, to close at €2.71. Similarly, Malita Investments plc shares strengthened by 3.7 per cent across nine deals of 208,500 shares, closing at €0.56.
Santumas Shareholdings plcannounced that the Board of Directors of the company agreed to submit an application to delist the shares of the company from the MSE under its current format as a Collective Investment Scheme and simultaneously apply to the Listing Authority to list its shares as a property holding company in terms of Chapter 7 of the Listing Rules. An Annual General Meeting shall be convened on September 24, 2014, at which, the following resolutions will be considered and if thought fit approved, the profit and loss account and balance sheet of the financial year ended March 31, 2014; to re-denominate the nominal value of the share capital of the company from €0.582343 to €0.55 per share and accordingly change the authorised share capital of the company from €2,329,372 divided into four million ordinary shares of €0.582343 each to €2,329,372 divided into 4,235,222 shares of a nominal value of €0.55 each; to increase the share capital from €969,703.59 to €1,007,443.80 through the capitalisation of revaluation reserves in the amount of €37,740.21, and to issue the equivalent number of fully paid up shares of a nominal value of €0.55 per share to shareholders who have last traded on the September 3, 2014 and appear on the register of members of the company as at September 9, 2014 at the ratio of one bonus share for every 10 ordinary shares held. The equity was not active this week.
In the corporate bond market turnover amounted to €1.9 million spread across 24 issues of which ten gained ground, five edged lower and nine closed unchanged. The 5.8% International Hotel Investments (IHI) plc 2021 was the worst performer as it declined by 2.1 per cent. On Thursday, IHI reported that the company repurchased 168,300 of its own 6.25% bond maturing in 2017-2020 from its bondholders.
Meanwhile, in the sovereign debt market 25 issues were active of which 17 rose and eight declined. Total turnover amounted to just under €7.9 million. The recently issued 4.1% MGS 2034 (I) r was the most liquid and best performing issue as it witnessed a turnover volume of €3.7 million nominal and closed the week 0.7 per cent higher at €105.75.