MSE Trading Report for week ending January 30, 2015

The MSE Index extended its recent positive streak by a further 0.07 per cent, to close at 3,420.191 points. A total of 18 equities were active of which 12 gained ground, five fell in value and one closed unchanged as total turnover amounted to €1.3 million.

 

Furthermore, a total of five equities closed the week at record highs. Namely, MaltaPost plc shares soared by 6.3 per cent as four deals of 9,387 shares were concluded, closing at its all-time high of €1.31 – €0.078 higher than last week. Likewise, Malta International Airport plc shares advanced by a further €0.05 or two per cent over eight trades of 16,200 shares, reaching a record high of €2.50.

 

Tigne Mall plc shares strengthened by 5.5 per cent as 245,000 shares changed ownership over two trades, closing at its all-time high of €0.65. In the food and beverage sector, Simonds Farsons Cisk plc shares edged 0.7 per cent higher on two deals of 1,166 shares, closing at their record high of €3.09.

 

RS2 Software plc shares added on to last week’s positive performance, having registered a 0.2 per cent increase, to close at its all-time high of €2.98.

 

Meanwhile, 6PM Holdings plc shares traded flat at £0.70 on a sole transaction of 2,000 shares. Conversely, Crimsonwing plc shares declined by 0.7 per cent as two transactions of 10,433 shares were executed, to close at €0.844. After close of trading on Friday, the company announced that in connection with the offer received from KPMG Investments Malta Limited (the offeror) for a voluntary public bid for the acquisition of the entire issued share capital of Crimsonwing, have as at January 20, 2015 (the closing date) received acceptances in respect of 29,506,296 shares in the company, amounting to approximately 97.7 per cent of the entire issued share capital of the company. Trading in Crimsonwing shares shall be suspended upon closing of trading on the February 3, 2015 for the purpose of completing the process of transfer of the entire issued share capital in favour of the offeror. Within a maximum of three months from the closing date of the offer, the offeror is entitled in terms of Listing Rule 11.42 to require all the remaining shareholders to sell and transfer to the offeror the remaining shares in Crimsonwing. The company shall inform the remaining shareholders of further details on the process to be carried out by the offeror for the purpose of acquiring all of the remaining shares in the company in due course.

 

In the banking sector, Bank of Valletta plc shares were the most active as they witnessed 108 deals of 261,589 shares. The equity oscillated between a weekly low of €2.05 and a high of €2.09, at which it closed – marking a two per cent gain. Similarly, Lombard Bank Malta plc shares rallied by 6.1 per cent across 20 trades of 95,959 shares, closing €0.11 higher at €1.92.

Conversely, HSBC Bank Malta plc shares closed at its weekly low of €2 thus closing 1.5 per cent lower as 17 transactions of 44,383 shares were dealt.

 

On a negative note, FIMBank plc shares stumbled by $0.05 or 8.3 per cent over five transactions of 30,851 shares, to close at $0.55. Fitch Ratings has downgraded the bank’s long-term Issuer Default Rating (IDR) and Viability Rating (VR) to BB- from BB, with a stable outlook. Furthermore, Fitch has affirmed FIMBank’s short-term IDR at B. According to Fitch, the long-term IDR and VR have been downgraded to reflect the bank's high risk appetite, which has resulted in a significant deterioration in asset quality, as well as unstable and weak earnings. The asset quality deterioration which has been addressed by Fitch is mainly attributable to severe impairments that have impacted the performance of several entities across the group, in particular India and Russia.

Middlesea Insurance plc shares partially recouped last week’s negative returns as it appreciated by €0.04 or 4.2 per cent on five deals of 3,500 shares to close at €0.99. The Board of Directors of the company is scheduled to meet on March 11, 2015 to consider and approve the company’s audited financial statements for the financial year ended December 31, 2014 and to consider the recommendation of a dividend.

 

Similarly, GO plc shares edged 0.2 per cent higher as 61,672 shares changed hands across 26 deals, to close at €2.60. The other gainers for the week were MIDI plc and Malita Investments plc shares – the former equity gained 9.5 per cent to close at €0.23 while Malita shares gained 1.5 per cent, to close at €0.662. On the other hand, Grand Harbour Marina plc shares fell by €0.07 or 3.9 per cent over two trades of 7,750 shares, closing at €1.75.

 

International Hotel Investments plc shares partially erased last week’s gains as they slid by 4.5 per cent, closing at €0.62. This negative performance shadowed the terrorist attack at the company’s Corinthia Hotel in Tripoli on Tuesday. Meanwhile, Island Hotels Group Holdings plc shares increased by a further three per cent on a single trade of 2,000 shares, to close at €1.02.

In the corporate bond market turnover amounted to €2.08 million. A total of 33 issues were active of which 16 declined, 12 gained ground and five closed unchanged. The 7.15% Mediterranean Investments Holding plc USD 2015-2017 took a 13 per cent hit, as it closed at $87. The same bond denominated in Euro followed suit as it sagged 5.7 per cent lower, to close at €90.50. Likewise, the 5.8% IHI 2021 declined by 4.9 per cent, closing at €98.

Turnover in the sovereign debt market totalled €23.4 million – spread across 27 issues of which short-dated issues yielded to selling pressure, while long-term issues continued to appreciate in value. The 4.1% MGS 2034 (I) r headed the list of gainers with a 2.4 per cent gain, to close at €119.30, while the 6.1% MGS 2015 was the worst performer as it eased 0.2 per cent to close at €102.10.