MSE Trading Report for week ending November 28, 2014

The MSE Index added on to last week’s negative performance as it declined by 0.4 per cent, to close at 3,273.709 points. A total of 13 equities were active throughout the week of which three slipped, six gained ground and four closed unchanged. FIMBank plc (FIMBank) shares were the best performers as they fully recouped last week’s losses, while International Hotel Investments plc (IHI) shares experienced the worst negative movement of the week.

 

Malta International Airport plc shares had a positive week having appreciated by €0.03 or 1.3 per cent as two transactions of a scant 545 shares were executed, again closing at its all-time high of €2.40. Likewise, Simonds Farsons Cisk plc shares maintained their record high of €3.02 as they traded flat across three deals of 2,722 shares.

 

Medserv plc shares also managed to escalate to their all-time high as they advanced by 1.5 per cent, to close at €1.37. On a similar note, Malita Investments plc shares climbed back to their record high of €0.61 as 5,800 shares changed ownership over two deals.

 

In the banking sector, Bank of Valletta plc shares were the only fallers having decreased by 0.5 per cent as 47 trades of 144,101 shares were struck, to close at €2.23. On Monday, the bank announced the appointment of Mr Miguel Borg as Chief Risk Officer, Ms Elvia George as Chief Finance Officer and Mr Kenneth Farrugia as Chief Business Development Officer.

 

Meanwhile, HSBC Bank Malta plc and FIMBank shares both ended the week higher as they appreciated by 0.3 per cent and five per cent respectively. The former witnessed 11 deals of 24,749 shares, to close at €1.905, while the latter was negotiated across a sole transaction of a mere 500 shares, closing at $0.63.

 

Similarly, Middlesea Insurance plc shares oscillated between a weekly low of €0.90 and a high of €0.994 at which it closed, gaining 0.30 per cent. The equity was negotiated across six trades of 10,324 shares.

 

On a negative note, GO plc shares declined by 2.2 per cent over ten deals of 28,390 shares, to close at €2.54 – marking a 3.8 per cent loss in November. Likewise, IHI shares stumbled by 4.5 per cent as six deals of 16,300 shares were processed, closing at €0.535.

 

In the I.T. sector, both 6PM Holdings plc and RS2 Software plc shares closed the week unchanged at £0.70 and €2.93 respectively.

 

Meanwhile, Crimsonwing plc announced that the Directors of the company approved the interim consolidated financial statements for the six months ending September 30, 2014. The company registered a profit before tax of €684,235, compared to €770,365 registered in 2013. Revenue for the period amounted to €10.7 million, an increase of 8.9 per cent from 2013 – this was the company’s highest first half revenue. Sales in two units were particularly strong. The UK revenues grew by 16 per cent, while in Malta revenues grew by 16 per cent.  The revenues, EBITDA and net profit achievements were on budget for the first half year. During this period, the company was heavily involved in some Dynamics solution designs for several global programmes. The company announced that as a result, it will be investing in additional resources in the second quarter and is expecting a stronger second half.

 

In an announcement after trading on Friday, Crimsonwing plc reported that it had received a voluntary offer from KPMG Investments Malta Limited, for a voluntary public bid launched in terms of Chapter 11 of the Listing Rules in respect of all the issued shares in the company as held by the shareholders of the company up until the closing date (as defined in the Offer Document), at an offer price of €0.8327 per share, with the intention of acquiring the entire issued share capital of the company, as further set-out in an offer document issued by the offeror and dated November 28, 2014. The acceptance period for the offer is from December 9, 2014 to January 20, 2015, unless extended further by the offeror as set-out in terms of the Offer Document. The company further announced that a meeting of the board of directors will be held next Wednesday in order to discuss the voluntary bid and the effects of its implementation on the company, on employment, conditions of employment and the locations of the company’s places of business. Following this meeting, the company will make available to the public a document setting out its opinion. The I.T. equity was not active this week.

 

The other non-movers for the week were MIDI plc shares as they closed the week flat at €0.21 – resulting in a monthly loss of 4.6 per cent.

 

In the corporate bond market turnover amounted to €762,811 spread across 25 issues of which eight slid, 11 rose and six closed unchanged. The 6% Mediterranean Investments Holding plc Euro 2021 was the worst performer as it declined by 4.1 per cent, closing at €93, while the 5.35% Izola Bank plc Secured Notes 2015 registered the most substantial gain of one per cent, to close at €101.

 

The €15 million 6% Subordinated Unsecured Bonds 2019-2024 issued by Mediterranean Bank plc were over-subscribed and hence the Issuer elected to exercise the over-allotment option and issued an additional euro equivalent of €10 million in bonds. The issuer reserved up to the euro equivalent of €15 million in bonds for holders of the 6.25% bondsdue in 2015 (the Exchangeable Bonds). The Issuer received from holders of the Exchangeable Bonds €8,604,000, which have been allotted in full. The remaining bonds available for subscription in the Intermediaries’ Offer amounted to the euro equivalent of €16,396,000. The Issuer elected to satisfy in full all subscriptions received for the GBP Bonds, whereas in the case of EUR Bond subscriptions, all amounts received were scaled down proportionately.

 

Finally, in the sovereign debt market activity was spread across 24 issues of which short-dated issues fell minimally, while long-term issues strengthened. The 5.1% MGS 2029 (I) registered the best performance as it rallied by more than one per cent, to close at €128.30. Meanwhile, The 4.1% MGS 2034 (I) was the most liquid issue as it witnessed a turnover of €1.2 million.