The Malta Stock Exchange (MSE) index closed the week flat at 4,469.04 points as gainers and fallers tallied at nine and an equity was unchanged. The local index faired well compared to global equity markets which were hammered by concerns about global growth weakness, lower oil prices and declines in the banking sector.
Solid gains in the share prices of Malta International Airport plc, Santumas Shareholdings plc and Mapfre Middlesea plc were offset by falls in International Hotel Investments plc (IHI) shares and most traded banking equities, primarily HSBC Bank Malta plc.
There was volatile trading on the MSE, which was closed on Wednesday due to a public holiday. But by Friday’s trading session the MSE recovered from the week’s declines. Total turnover reached €1.58 million – a week-on-week drop of 43.6 per cent, spread across 19 equities.
Santumas Shareholding plc was the week’s best performer as its share price rose 22.1 per cent to €2.22 after trading for the first time since its bonus share issue was allotted to registered shareholders as at January 8. There were two deals of 1,436 shares.
Mapfre Middlesea plc shares rallied 8.7 per cent to close the week at nearly a seven-year high of €2.45 after two deals of 4,000 shares.
It was a negative week for the banking equities. A single deal of 1,155 Lombard Bank Malta plc shares wiped out nine per cent of its share value, to close at an 18-week low of €2.185.
HSBC Bank Malta plc’s share price sank by a further 4.1 per cent to a 12-year low of €1.63, as 134,240 shares changed hands in 45 deals.
Bank of Valletta plc retracted by 0.70 per cent to €2.215 on a turnover worth €453,000, the week’s highest.
Fimbank plc shares edged 0.8 per cent higher to close the week at $0.61, as 16 deals of 321,859 shares were negotiated.
Malta International Airport plc’s share price rallied by 4.4 per cent to close the week above its previous high at €4.70. The equity was active in the second highest turnover of €265,000.
Maltapost plc locked in a 5.4 per cent gain, thus recovering from its previous week’s 4.2 per cent fall. The equity closed the week at €1.94, just €0.05c shy of its all-time high of €1.99. There were six deals of 3,698 shares.
Global Capital Plc shares plunged by 10 per cent to close at €0.45 after a thin volume of 2,580 shares traded in two deals.
International Hotel Investments plc shares continued their downward trend over the past 12 weeks. The share price oscillated between a low of €0.662 and a high of €0.73, to close the week down 2.2 per cent at €0.719, as four deals of 7,373 shares upped the selling pressure.
Medserv plc retreated by a further 2.3 per cent to €1.564, as 62,373 shares changed hands in 20 deals. Last Thursday, the company announced that the request put forward by two international oil companies to extend the operating licence granted to Medserv (Cyprus) Ltd to operate out of the Larnaca Port was rejected by Larnaca local council. Medserv will continue to service its clients out of Larnaca as per its current licence, which expires in August 2016. Cyprus Port Authority has informed the oil companies that its operations will be transferred to Limassol Port.
Midi plc shares fell 2.8 per cent on a thin volume of 100 shares, to close the week at €0.35.
Plaza Centres plc shares fell by two per cent to €0.98 as a single deal of 1,000 shares was struck.
Malta Properties Company plc shares gave back some of the previous week’s 5.6 per cent increase as seven deals of 44,050 shares dragged its share price 1.8 per cent lower to close the week at €0.56.
There was no change in Tigné Mall plc’s share price which closed at €0.97 after three deals of 7,284 shares.
6PM Holdings plc’s share price rose 3.6 per cent to £0.725, following two deals of 7,823 shares, and RS2 Software plc’s share price gained 1.2 per cent to close at a new record high of €3.34, as 21 deals of 36,550 shares were struck.
On the back of positive annual financial results, GO plc shares were back in positive territory, appreciating by 2.6 per cent to €3.25 – a level last seen in October 2015.
Last Thursday, the company announced that the group registered a gross profit of €34.2 million compared to €13.7m in 2014. Revenue for the period under review amounted to €123.7 million, a 1.2 per cent rise from the previous year. Operating profit amounted to €27.8 million compared to €21.8m the previous year. Earnings per share soared to €0.261. The board of directors is recommending the approval of a final dividend of €0.10 net of tax per share to registered shareholders as at April 11.
The company also announced that it has received a number of non-binding offers for the company’s entire issued share capital, and is now in the process of evaluating the offers. In the coming weeks, GO will grant all selected offerors access to information placed in the data room in accordance with the authorisation granted by the shareholders.
Simonds Farsons Cisk plc shares rose for the first time this year, closing the week at €6.10, as two deals of 1,000 shares were struck.
In the corporate bond market, total trading value rose from €495,000 to €716,000, spread across 25 active issues, of which 11 gained in value, seven closed lower and seven stood unchanged. The 4.5 per cent Medserv plc unsecured € 2026 issue was traded for the first time last week and notched the week’s best performance, having closed at €104.26 – up by 4.3 per cent. The 4.8 per cent Bank of Valletta plc sub € 2020 issue inched 1.4 per cent lower to €104.51, as three deals of 13,000 nominal were negotiated.
In the sovereign debt market, 22 of the 24 traded issues fell in value while two edged higher. The 4.5 per cent MGS 2028 (II) fell by 1.2 per cent to €130.93 after three deals of 23,500 nominal, while the three per cent MGS 2040 (I) r edged one per cent higher to €109.90. Total turnover amounted to €3.33 million, of which 20 per cent was traded in the 2.3 per cent MGS 2029 (II) issue.
This article, which was compiled by Jesmond Mizzi, managing director of Jesmond Mizzi Financial Advisors Ltd, does not intend to give investment advice and the contents therein should not be construed as such. The company is licensed to conduct investment services by the MFSA and a member of the Malta Stock Exchange and a member of the Atlas Group. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Jesmond Mizzi at 1/2, St Joseph High Street, Ħamrun, or on Tel. 2122 4410 or e-mail jesmond.mizzi@jesmondmizzi.com.