The MSE Equity Total Return Index returned to negative territory last week, as it was down 0.72 per cent to close at 9,768.332 points. In the equities market, 21 securities were active, as fallers outnumbered gainers by nine to seven. Turnover was significantly lower than the previous week’s figure of €2.2 million, as €1.6 million worth of equities traded over 227 transactions.
The end of the week also coincided with the end of the month of May, during which 11 equities declined, ten gained ground while another one closed unchanged. The MSE Index registered a 2.77 per cent monthly gain, despite posting negative weekly movements in three of the four full weeks of the month. The monthly gain was mainly the result of the impressive performance registered by local equities in the previous week.
Bank of Valletta plc announced that its board of directors has authorised the submission of an application to the Listing Authority requesting the approval for admissibility to listing of €50,000,000 Bank of Valletta plc 3.75 per cent Unsecured Subordinated Bonds 2026-2031. The bonds will form an integral part of the issuer’s capital plan, and will strengthen the bank’s Tier 2 Capital. The proceeds will be used to meet part of the bank’s general financing requirements.
The equity closed unchanged at €1.33, despite generating a substantial turnover of €242,893 over 40 deals.
The banking industry as a whole however was a drag on the index, as two equities posted losses, led by HSBC Bank Malta plc, which declined 2.94 per cent to a price of €1.65. This was the outcome of 19 transactions, in which 31,608 shares changed hands.
Lombard Bank Malta plc followed suit with a 1.74 per cent loss in value to €2.26, over a sole deal of 4,775 shares.
In the same sector, FIMBank plc closed unchanged at €0.60, in spite of five deals of 113,177 shares.
One of the main drivers of the week’s negative performance was Malta International Airport plc, as it retracted 5.06 per cent from the previous week’s record prices, to settle at €7.50. A total of 8,754 shares worth €66,208 were exchanged over 18 deals.
MaltaPost plc published its preliminary statement of half yearly results, for the six-month period ended March 31, 2019. During the period, the company registered a profit before tax of €1.4 million, translating to an eight per cent increase over the corresponding period last year.
Will strengthen the bank’s Tier 2 Capital
Following the publication of its half-year results on Thursday, the share price rallied 6.06 per cent. The equity reached the highest closing price in five months of €1.40, as a result of nine transactions of 39,378 shares.
In the telecommunications sector, GO plc also registered a solid gain of 4.67 per cent to reach €4.48. The equity was the most liquid, as €310,449 worth of shares traded across 23 deals.
The company held its Annual General Meeting on Tuesday. During the meeting, all ordinary resolutions on the agenda were approved. This includes the payment of a net dividend of €0.14 per share and the 2018 Annual Report and Financial Statements.
Its spin-off, BMIT Technologies plc held its Annual General Meeting last Monday, during which all the ordinary resolutions on the agenda were approved, including the annual report and financial statements for 2018. The share price was down 2.78 per cent to €0.525, as a significant volume of 276,307 shares traded over 25 deals.
International Hotel Investments plc climbed 1.23 per cent to reach €0.82. The equity traded six times as 9,479 shares were exchanged.
The worst performer of the week was GlobalCapital plc as its share price plunged 16.67 per cent as a result of just one transaction of 1,040 shares.
Its peer, Mapfre Middlesea plc also traded just once on slim volume, as it lost 1.77 per cent in value to close at €2.22.
RS2 Software plc sustained the previous week’s closing price of €1.40, despite generating a turnover of €118,807 over 14 trades.
In the food and beverage sector, Simonds Farsons Cisk plc surrendered a small portion of the previous week’s gains, as it retracted 1.87 per cent to €10.50. In total, nine deals of a combined 11,640 shares were struck.
A total of 20,250 Grand Harbour Marina plc shares changed ownership over three deals, all of which were executed at an unchanged price of €0.74.
Similarly, retail conglomerate, PG plc traded flat at €1.64 over four deals of 5,740 shares.
Medserv plc held its Annual General Meeting last Monday. Among other resolutions and appointments, the AGM approved the consolidated financial statements for 2018. The share price continued the positive path set in the previous week, as it advanced a further 2.73 per cent to €1.13. The equity traded eight times as 95,044 shares were exchanged.
Performances in the property sector were mixed, as three equities posted gains while two closed in the red. The largest price movement was a 4.76 per cent rise in the price of Trident Estates plc, to close at €1.76. A total of six deals were recorded, as 17,620 shares changed hands.
Similarly, Malta Properties Company plc recorded a 4.07 per cent rise in the price to close at €0.64. Trading volume amounted to 253,251 shares over 20 transactions.
A sole deal of 4,800 Plaza Centres plc shares was executed at €1.00, translating to a 1.01 per cent increase in share price.
On the other hand, MIDI plc fully erased the previous week’s gain, as it drifted 3.33% to €0.58. A turnover of €47,830 was generated over seven deals.
Malita Investments plc also traded in negative territory, as it closed at €0.82. The 2.38 per cent price decline was the result of seven trades of 55,333 shares.
Yields in the sovereign debt were down, as 18 issues headed north, while only six lost ground. In fact, the MSE MGS Total Return Index closed 0.56 per cent higher at 1,060.044. Investor participation eclipsed the turnover figures of recent weeks, as an impressive €14.8 million worth of Malta Government Stocks were exchanged, compared to the previous figure of €2.7 million. The longest-dated issues all posted gains, particularly the 2.2% MGS 2035 (I) which advanced by 1.35 per cent to €111.52.
However, in the corporate debt market, fallers outnumbered gainers, as eight issues gained while 13 traded in negative territory. Activity in the market was slightly higher than the previous week’s turnover figure of €1.7 million, as €1.8 worth of corporate bonds were traded. The MSE Corporate Bonds Total Return Index retracted by 0.25 per cent to settle at 1,070.804 points. The most notable price movement was recorded by the 6% International Hotel Investments plc € 2024, as it was down 2.75 per cent to €106.
This article which was compiled by Jesmond Mizzi Financial Advisors Limited, 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 is 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 Financial Advisors Limited at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email info@jesmondmizzi.com.