Banking equities drag index lower
MSE Trading Report for week ending August 8, 2014
The MSE Index fully erased last week’s gains as it slipped by 1.91 per cent, to close at 3,331.346 points. Activity was spread across 20 equities of which six advanced, seven lost ground and another seven closed unchanged. Loqus Holdings plc (Loqus) shares declined the most, while GlobalCapital plc shares headed the list of gainers,
Investors proved to be bearish towards shares in the banking sector as three registered a decline in their share price, whilst one minimally gained ground. FIMBank plc shares sagged by 9.1 per cent across a sole transaction of 10,500 shares, closing $0.068 lower at $0.68. The Board of Directors of the trade finance bank approved the consolidated and the bank’s interim financial statements for the six months ended June 30, 2014. The group registered a loss before tax of $342,254 compared to a $7.5 million loss in 2013. Prior to impairment losses, marked-to-market adjustments and share of equity results, the group improved its operating performance by 41 per cent. Net interest for the period amounted to $14.5 million, an increase of 97 per cent from 2013 – principally as a result of lower cost of funding, higher volumes for funded business and the inclusion of results from India and Russia. During the period under review, the Group is recognizing a one-off net fair value gain of $7.83 million on the re-measurement to fair value of the 49 per cent and 30 per cent interest previously held in India Factoring and FactorRus respectively. The Directors did not recommend an interim dividend for the period under review. Net impairment losses increased from $1.81million to $10.19 million due to specific impairment charges taken in the Russia and India entities.
Similarly, HSBC Bank Malta plc shares added to last week’s negative performance as they dipped by a substantial €0.14 or 6.9 per cent over the highest turnover for the week of 156,484 shares, to close at its five year low of €1.90. The Board of Directors of the bank approved the interim financial statements for the period ending June 30, 2014. The Group registered a profit before tax of €39.6 million, compared to €53 million registered in 2013. Net interest income for the period under review amounted to €58.3 million, a decline of 8.2 per cent from 2013. Earnings per share decreased to €0.079. This performance, which was an improvement on the performance in the second half of 2013, was impacted by lower interest earnings as a result of record low European Central Bank rates and muted loan growth, as well as an increase in costs as a result of compliance investment and increased regulatory fees. One must also note that, the 2013 performance benefited from a one-off insurance gain, which was not repeated in the first half of 2014. The Board has declared an interim gross dividend of €0.045 per share – €0.029 net of tax. This will be paid on 4 September 2014 to shareholders who are on the bank’s register of shareholders at 14 August, 2014.
Lombard Bank Malta plc shares partially reversed last week’s impressive gains as they fell by 5.9 per cent across two trades of 11,250 shares, closing €0.10 lower at €1.60. Conversely, Bank of Valletta plc shares were the only gainers in the banking sector having increased by a marginal 0.1 per cent as 41 deals of 111,085 shares were negotiated, to close at €2.101.
RS2 Software plc shares gained a further 1.1 per cent as eight transactions of 49,689 shares were struck, closing at €2.629. In the same industry, 6PM Holdings plc shares slipped by 1.4 per cent across three deals of 8,302 shares, to close at £0.73.
Contrary to the norm,GlobalCapital plc shares were significantly active across 13 trades of 33,735 shares. The equity’s share price hovered between a low of €0.649 and a high of €0.80, at which it closed the week.
On a negative note, Malta International Airport plc (MIA) plc shares fell by €0.04 or 1.7 per cent, as 14 deals of 11,944 shares were negotiated, closing at €2.31, despite having reached a weekly high of €2.34. The local airport operator reported that it had hosted a record 511,243 passengers in July, marking an increase of 8.5 per cent when compared to the same month last year. These figures reinforced the company’s decision to revise its forecast for the rest of the year. Mr Klaushofer – MIA’s CEO announced last week that the airport was now expecting a year-on-year growth of 4.2 per cent, revised from 2 per cent originally forecast in January. This followed six record months which accounted for more than 1.8 million passenger movements. Last month’s figures were due to an overall seat capacity increase of 8.2 per cent and a 0.2 per cent increase in seat load factor, reaching 82.8 per cent for the month. Aircraft movements for July rose by 8.2 per cent.
On Wednesday,Loqus shares dropped by 19.1 per cent in a single trade of 2,135 shares, to close at €0.085. Conversely, Plaza Centres plc shares rose by 5.4 per cent over three deals of 60,906 shares, closing at €0.59.
GO plc shares managed to close the week unchanged at €2.40, despite reaching a weekly low of €2.355. The telecommunications equity was active across 10 transactions of 9,840 shares. The Board of Directors of the company is scheduled to meet on August 13, 2014 to discuss the group interim unaudited financial statements for the six-month period ended June 30, 2014.
Likewise, Santumas Shareholdings plc shares traded flat at €1.99 over three deals of a mere 268 shares. The company announced that the Board of Directors of the company is scheduled to meet on August 12, 2014 to consider and if thought fit, approve the company’s financial statements for the 12 months ended April 30, 2014. Meanwhile, Malita Investments plc shares retained to last week’s price of €0.55, as eight trades of 77,750 shares were processed. The companyreported that Dr John Buttigieg and Mr Eric Schembri have been appointed Directors of the company and Dr Astrid May Grima as company secretary with effect from August 1, 2014.
The other non-movers for the week were Simonds Farsons Cisk plc, Medserv plc, MIDI plc and Tigne Mall plc shares as they all closed the week unchanged at €2.87, €1.30, €0.24 and €0.515 respectively.
MaltaPost plc shares advanced by 1.8 per cent over three transactions of 8,302 shares, closing 1.8 per cent higher at €1.14. Furthermore, Middlesea Insurance plc shares strengthened by 5.1 per cent across ten transactions of 22,860 shares, to close €0.045 higher at €0.92. On the other hand, Grand Harbour Marina plc shares fell by 0.5 per cent as a single transaction of 1,000 shares was executed.
In the corporate bond market turnover amounted to €440,847 spread across 21 issues of which five weakened in value, nine gained ground and seven closed unchanged. The 7.15% Mediterranean Investments Holding plc Euro 2015-2017 was the worst performer as it dipped by three per cent.
Meanwhile, in the sovereign debt market 20 stocks were active, the majority of which increased in value, as the 3.75% MGS 2015 (VI) and the 5.1% MGS 2022 (I) fell in value. Total turnover amounted to just under €42.9 million. On Tuesday, the Treasury announced the allotment policy to be applied for applications received by members of the public with respect to the latest Malta Government Stocks (MGS) issues. All applications subscribed in the 2% MGS 2020 (V) have been accepted in full. On the other hand, all applications up to €70,000 in nominal terms subscribed in the 4.1% MGS 2034 (I) have been met in full. Meanwhile, applications in excess of €70,000 in nominal terms have been allotted €70,000 minimum per applicant plus an additional 40 per cent of the remaining unallocated balance per applicant rounded up to the nearest €100.