MSE Index extends gains as 9 equities trade higher

MSE Trading Report for week ending May 8, 2015

The MSE Index extended last week’s gain by a further 0.6 per cent, to close at 3,790.141 points. A total of 16 equities were active of which nine advanced, five fell and two closed unchanged as turnover amounted to €1.8m.

Medserv plc shares headed the list of gainers having soared by €0.17 or 8.4 per cent as five deals of 16,390 shares were struck. The equity closed at its record high of €2.20. Likewise, Simonds Farsons Cisk plc shares rallied by 5.2 per cent on two trades of 1,800 shares, closing €0.175 higher at an all-time high of €3.525.

MaltaPost plc shares erased last week’s two per cent loss as two transactions of 2,995 shares lead the equity to re-touch its record closing high of €1.45. The Board of Directors of the company is scheduled to meet on May 12, 2015 to consider and approve the interim financial statements for the six months ended March 31, 2015.

In the banking sector, Bank of Valletta plc shares were the only positive performers, having registered a 0.3 per cent gain on the highest turnover for the week of €565,000. The equity oscillated between a weekly high of €2.351 and a low of €2.29, to then close at €2.30.

FIMBank plcregistered the worst loss when compared to its banking peers as its share price fell by 1.1 per cent across four deals of 55,713 shares, closing at $0.45. Meanwhile, HSBC Bank Malta plc and Lombard Bank Malta plc shares declined by 0.6 per cent and 0.5 per cent respectively. The former witnessed 63 trades of 210,162 shares, closing at €1.86, while the latter were negotiated across four transactions of 4,430 shares, to close at €1.89.

Middlesea Insurance plc shares traded flat at €1.22 over two trades of a scant 738 shares. As per approval by shareholders at the AGM on April 24, 2015,Middlesea Insurance plc will change its name to Mapfre Middlesea plc effective as from May 11, 2015.

In its Interim Directors’ Statement, the companyannounced that the first quarter of 2015 saw an increase in the Group’s non-life and life premium volumes and revenues, following another year which showed a good increase in terms of revenue growth. A very positive performance by the Group’s investment portfolio resulted in an increase compared to the modest performance during the comparative quarter in 2014.

The other non-mover for the week was Tigne Mall plc having closed at €0.80 over two transactions of 6,000 shares. On a positive note, International Hotel Investments plc (IHI) shares recouped last week’s loss, having advanced by 1.5 per cent across three transactions of 50,000 shares toclose at €0.69.

Elsewhere, Malta International Airport plc (MIA) shares edged 0.1 per cent higher over 15 trades of 36,905 shares. The local airport operator’s shares swayed between a weekly high of €3.49 and a low of €3.455, to ultimately close at €3.465.

MIA hosted 392,676 passengers last month – a 4.2 per cent increase over Aril 2014. This growth is in line with the increase in aircraft movement of 4.1 per cent, which translated to a seat capacity increase over last year. April also saw growth in the seat load factor, which measures the percentage of filled seats on each flight, to 77.8 per cent – compared to 76.7 per cent during the same period last year. Most of April’s growth came from traffic to and from Italy and Germany.

GO plc shares soared by €0.16 or 5.6 per cent as 173,581 shares changed ownership, closing at €3. TheBoard of Directors of the company has been exploring options that would maximise value for its shareholders in relation to the portfolio of immovable property owned by its subsidiary Malta Properties Limited and its subsidiary companies. The portfolio consists of 11 immovable properties valued at approximately €50m.

In the I.T. sector, RS2 Software plc shares registered an increase for the fifth consecutive week, closing at €3.16, however failing to maintain an intra-week high of €3.20 – after trading ex-dividend on Thursday. Conversely, 6PM Holdings plc shares fell by 2.6 per cent as 19,374 shares changed hands, to close at £0.74.

Santumas Shareholdings plc shares slipped by 0.3 per cent on very low volumes, closing at €1.995. Meanwhile, MIDI plc shares recouped 1.8 per cent over two trades of 135,964 shares, to close at €0.285.

GlobalCapital plc has applied to the Listing Authority to request an extension until May 31, 2015 to consider and approve its annual financial report for the financial year ended December 31, 2014. The delay in the publication of the company’s annual financial report will result in the Listing Authority’s extension of the suspension of the listing and trading in the company’s securities until its annual financial report is made public.

In the corporate bond market 27 issues were active of which 12 gained ground, four declined and eleven closed unchanged. Turnover in this market amounted to €856,554. The 7.15% Mediterranean Investments Holding plc Euro 2015-2017 was the top-performer as it advanced by 4.2 per cent, to close at €96.

The new €45m bond issued by IHI was heavily oversubscribed – the company will announce the basis of acceptance and the allocation policy by not later than May 11, 2015.

On May 1, 2015, Izola Bank plc announced that the Board of Directors of the bank has submitted an application to the Listing Authority of the MFSA requesting the admissibility to listing of €12m in bonds redeemable in 2025. Subject to approval and to their effective admission, the net proceeds from the new bonds will be used by the issuer for the purpose of purchasing the  €9m 5.35% Izola Bank plc Secured Notes due on June 30, 2015 from existing noteholders for cancellation and to meet part of its general funding requirements. The issuer will be granting holders of the maturing notes preference to subscribe to the new bonds by surrendering their respective holding in the maturing bonds.

Investors continued to take profits in the sovereign debt market as all 25 active issues registered a decline in value. Particularly, the 3% MGS 2040 (I) recorded the worst drop of 2.7 per cent to close at €113.19. The said MGS gained one per cent on Friday after trading at a weekly low of €112 on Thursday. Turnover in this bond amounted to €11.9m compared to a €50.9m total turnover in sovereign debt market.