MSE index up on higher turnover
MSE Trading Report for week ending September 18, 2015
The MSE Index traded between a seven-year high of 4,314.477 points and a weekly low of 4,302.231 points to close the week 0.39 per cent higher at 4,312.696 points. Total turnover stood at €1.1m, an increase of 44 per cent over last week as 14 equities were active, of which, gainers and fallers tallied at six, while two closed unchanged.
Pushing the index higher were FIMBank plc shares as they soared by 11.1 per cent – after four weeks of inactivity – to close at $0.50 as eight transactions of 75,367 shares were concluded. In the same sector, Bank of Valletta plc (BOV) shares also ended the week 2.2 per cent higher to close at €2.31 – a 10 week high. This equity was the most liquid as it recorded a turnover of €262k or 24 per cent of total turnover as 113,235 shares changed hands over 48 trades. Last Wednesday, BOV announced that it had submitted an application for the approval of a Prospectus in respect of a 12-month Subordinated Debt Issuance Programme of a maximum principal amount of €150m. The Notes to be issued will form an integral part of BOV’s capital plan, aiming to strengthen Tier 2 Capital, as required by European regulations. The net proceeds from the issue shall contribute to general financing requirements.
On the other hand HSBC Bank Malta plc ended the week in the red as its share price retracted by 0.3 per cent over high volume worth €241k to close at €1.84 – after three consecutive weeks of gains. The other banking equity to close the week in negative territory was Lombard Bank Malta plc as it shed 0.9 per cent to close at €2.10 after 10 transactions of 67,322 shares were concluded. Meanwhile, Mapfre Middlesea plc maintained last week’s €2.25 price level over low activity as 7,230 shares were traded.
In the IT sector, RS2 Software plc shares continued to push ahead as it closed at an all-time high of €2.52 – a 0.8 per cent increase over last week’s all-time high. Activity in this equity was spread over 16 transactions of 38,216 shares. Meanwhile, 6PM Holdings plc shares closed unchanged at £0.70 over thin volume as two trades of 5,530 shares were executed.
Medserv plc and Simonds Farsons Cisk plc (SFC) shares also ended the week at an all-time high. Medserv topped its previous high for the fifth successive week as it closed 1.7 per cent higher at €3.05 over two trades of 9,987 shares – a year-to-date gain of 110 per cent. The company announced that an Extraordinary General Meeting (EGM) will be held on October 12, 2015 to approve a resolution to authorise the Company to disclose to any bona fide offeror such information in relation to the Medserv group of companies, including unpublished price-sensitive information, as may be necessary to enable any bona fide offeror and its advisers to make, confirm, withdraw or modify any bona fide offer made to Medserv p.l.c.
Meanwhile, SFC gained 0.9 per cent over scant volume worth €2k to close at €5.60. During the week, the company announced that the directors are scheduled to meet on September 30, 2015, to consider and approve the financial statements for the six months ending July 31, 2015 and to consider the payment or otherwise the payment of a dividend.
The other gainer for the week was Malta International Airport plc as it advanced by a mere 0.1 per cent to close at €3.90 as 12,755 shares changed hands over 11 trades.
Conversely, Plaza Centres plc shares headed the list of fallers as it posted at a 6.7 per cent decline to close at €0.98 as three transactions of 83,000 shares were executed. Elsewhere, International Hotel Investments plc nearly wiped out all of last week’s 2.6 per cent gains as it lost 2.5 per cent over nine trades of 45,442 shares to close at €0.78.
The other fallers for the week were GO plc and Malita Investments plc (Malita) shares as they slipped by 1.4 per cent and 0.9 per cent respectively. GO closed at €3.45 as 11 deals of 13,261 shares were concluded while Malita closed at €0.93 as 75,000 shares changed hands over four transactions. GO plc announced that an Extraordinary General Meeting (EGM) will be held on October 29, 2015 to approve two resolutions, namely, authorisation to seek bids for the Company’s entire issued share capital and to disclose information, including price sensitive information, as considered appropriate. Shareholders on the Company's Share Register, as at September 29, 2015, shall have the right to participate in and vote at the EGM.
In the corporate bond market 24 issues were active of which nine gained ground, six decreased while nine closed unchanged. The 4.8% Bank of Valletta plc Sub € 2020 was the top performer as it climbed by 3.6 per cent to close at €108 as three deals of 45,000 nominal were concluded. Conversely, the 5% Hal Mann Vella Group plc Secured Bonds € 2024 declined by 3.2 per cent as two transactions of 84,700 nominal pushed the bond price down to €107. Total turnover for the week amounted to €1.1m, from €465K last week. The most liquid issue was the 5.3% Mariner Finance plc Unsecured € 2024 as it recorded a turnover of €245k or 22 per cent of total turnover to close unchanged at €111.11.
Santumas Shareholdings announced that from May 1,2015 up September 15, there were no material events or transactions that could impact the financial position of the company. The Company reported that there was no movement in its property portfolio and costs remained unchanged from previous years while the equity portfolio increased in line with the rise in value of the MSE index.
MIDI plc announced that it had acquired Siemens' 50 per cent shareholding in Solutions & Infrastructure Services Limited (SIS) for the consideration of one euro. The agreement further contemplated the waiver by Siemens of €350k which was due to it by (SIS) by way of a shareholders loan; and an informal capital contribution made by Siemens to SIS of €1.742m as part of a restructuring exercise. The development currently underway at Tigne Point, were awarded to Siemens with whom an agreement was reached for a credit of €1m. The company believes that this development will turn around the current forecasted losses to be incurred by SIS, for the financial year ending September 30, 2015. Being that SIS is now a wholly owned subsidiary of the MIDI group, the Company shall act as a surety for the repayment of SIS' banking facilities.
Global Capital PLCannounced that EIP plc has informed the Company that since the expiry of the Share Purchase Agreement, on September 10, EIP had received no further communication from BAI Co (Mtius) and that no new agreement has so far been executed between EIP and BAI. The Company is informed that the original transaction has not been completed; however EIP is still intent on acquiring a shareholding in the Company and committed to support any capital increases, up to the sum of €15m. Thus, the Directors consider the going concern basis in the preparation of the Company’s financial reports as appropriate.
Meanwhile, the Annual General Meeting of the Company was held on September 16, 2015 at which the fifth resolution to authorise the disclosure of price-sensitive information, and the seventh resolution to authorise directors to issue and allot new shares, were approved.
It was a negative week on the local sovereign debt front as of the 20 stocks traded 15 closed in the red while five closed higher. Total turnover registered a fourfold increase reaching €34m of which 42 per cent was traded in the 4.5% MGS 2028 (II) having edged lower by 0.1 per cent to close at €128.03. The 5.1% MGS 2022 (I) headed the list of gainers as it drifted 0.2 per cent higher to close at €126.02 as seven transactions of 2.86m nominal were concluded. On the other hand, 12 deals of 1,83m nominal in the 4.3% MGS 2033 (I) dragged the stock price down by one per cent to close at €125.88.
In the European debt market, yields were on the increase until Thursday but registered a sharp decline on Friday following the announcement by the United States Federal Reserve, that it had keep interest rates unchanged.