MSE Trading Report for week ending July 25, 2014

The MSE Index extended last week’s positive performance as it gained a further 1.42 per cent, to close at 3,391.085 points. Activity was spread across 13 equities of which five advanced, three fell in value and five closed unchanged. International Hotel Investments plc (IHI) shares headed the list of gainers, while MaltaPost plc (MTP) shares were the worst performers.

 

GO plc shares rallied by a significant €0.06 or 2.6 per cent across 17 deals of 53,332 shares, to close at €2.36 – a price last reached in July 2008. The telecommunications equity has registered a gradual gain over the past five weeks following various announcements issued by the company regarding its foreign investment.

 

In the banking sector, Bank of Valletta plc shares fully erased the previous week’s losses as they advanced by 1.5 per cent across the highest turnover for the week of 218,972 shares spread across 57 deals, to close €0.03 higher at €2.10. The equity traded at a low of €2.07 and a high of €2.12. Conversely, HSBC Bank Malta plc shares declined by 1.4 per cent as 20 trades of 44,877 shares were struck, to close at €2.07, having traded at a high of €2.14 and a low of €2.06. Investors are eagerly awaiting the half yearly financial results which are to be reported on Monday August 4, 2014.

 

On the other hand, Lombard Bank Malta plc shares appreciated by 2.4 per cent to €1.50 while FIMBank plc shares closed the week unchanged at $0.748. The former witnessed six transactions of 16,026 shares, while a single deal of 2,107 shares was executed in FIMBank.

 

RS2 Software plc shares rallied by two per cent as 11 trades of 59,470 shares were negotiated, closing €0.05 higher at €2.55. On the other hand, Crimsonwing plc shares traded flat at €0.82 on a single deal of 6,621 shares on Thursday. This week the company reported that for the first quarter of its financial year (April 1, 2014 to June 30, 2014), it is maintaining its good progress. Like-for-like first quarter revenues are marginally higher than last year at €5.3 million. During the specified quarter, the company made excellent progress on new business sales across the Dynamics (ERP) and the eCommerce propositions. The company also stated that the trading outlook for the next quarter remains positive.

 

In the hoteliers industry, IHI soared by an impressive 8.6 per cent or €0.06 as two trades of 5,209 shares were executed, to close at €0.76. Meanwhile, Island Hotels Group Holdings plc shares closed the week unchanged at €0.82. Throughout the week, the equity witnessed three trades of 7,000 shares.

 

On Thursday, ten transactions of 33,963 shares led to a 2.6 per cent decrease in MaltaPost plc’s share price – to close the week at €1.12. Likewise, Malita Investments plc shares fell by 1.8 per cent over four trades of 98,500 shares, closing at €0.55.

 

The local airport operator Malta International Airport plc traded flat   at €2.30 as 3,600 shares changed hands across three deals.  Similarly, Middlesea Insurance plc shares traded unchanged at €0.88 on one transaction of 5,000 shares.

 

On Wednesday, the Board of Directors of Plaza Centres plc (PZC) approved the company’s interim unaudited financial statements for the six months ending June 30, 2014. The company registered a profit before tax of €714,929, compared to a €605,474 registered in 2013. Revenue for the period under review amounted to €1.15 million, an increase of 10.7 per cent from 2013.  Despite the positive results the equitywas not active this week.

 

In the corporate bond market turnover amounted to €889,388 spread across 23 issues of which gainers and losers tallied at seven and nine closed unchanged. The 6% Mediterranean Investments Holding plc Euro 2021 headed the list of fallers as it declined by 2.9 per cent, closing at par.

 

Meanwhile, in the sovereign debt market 25 issues were active of which 14 slipped and 11 gained ground. Total turnover amounted to €31.2 million. The 4.3% MGS 2033 (I) r was the most liquid issue as it witnessed a turnover volume of just under €8.95million.

 

On Thursday, the Treasury announced the prices and hence the yield to maturity (YTM) of the newly issued Malta Government Stocks (MGSs). The 2% MGS 2020 has been priced at €101.75 per nominal €100, corresponding to a YTM of 1.699%; while the 4.1% MGS 2034 has been priced at €100.75 per €100 nominal, corresponding to a YTM of 4.045%. Applications can be submitted from next Monday till Wednesday – or earlier at the discretion of the Accountant General.

 

The Legal Notice in respect of the Investment Registration Scheme (IRS) launched by the Government of Malta last month has now been published. Interested applicants can now regularise their position through authorised agents until the end of September 2014. The IRS will provide Maltese residents and companies the opportunity to register undeclared assets, located both locally and abroad. Assets will be regularised against a registration fee of 7.5% of the value of the asset, while a rate of 5% will apply in the case of assets held abroad which are repatriated and invested locally.