MSE Index surpasses the 4,000 point level

MSE Trading Report for week ending June 12, 2015

The MSE Index sustained its recent winning streak with another significant 1.8 per cent gain – thus registering its fourth consecutive weekly gain to close at 4,021.758 points. Turnover amounted to €1.2m spread across 15 equities of which seven gained ground, six declined and two closed unchanged.

Mapfre Middlesea plc shares were the best performers for the second consecutive week having rallied by €0.21 or 12.7 per cent across 14 deals of 29,736 shares, closing at a 6-year high of €1.86. The equity has soared by an impressive 87.1 per cent year-to-date.

Investors manifested mixed sentiment towards the banking sector as two equities advanced moderately, one declined, while another closed unchanged. Bank of Valletta plc shares edged 0.4 per cent higher as 45 deals of 73,328 shares were executed, closing at €2.29. Similarly, Lombard Bank Malta plc shares gained 0.1 per cent as 2,828 shares changed ownership to close at €1.821. On a negative note, HSBC Bank Malta plc shares declined by €0.04 or 2.2 per cent over 42 trades of 98,139 shares, closing at €1.80. Meanwhile, FIMBank plc shares closed unchanged at $0.465 as 18,681 shares were dealt. 

The other non-mover for the week was Grand Harbour Marina plc, having recovered from a weekly low of €1.84 to close unchanged at €1.89 as three trades of 20,000 shares were executed. 

A single trade of a scant 118 shares in MaltaPost plc led to a €0.05 or 3.3 per cent gain to close at a record high of €1.55. Meanwhile, International Hotel Investments plc (IHI) shares soared by 11.2 per cent over the highest volume of 127,732 shares, to close at €0.901. Year-to-date IHI shares have gained a staggering 55.6 per cent. 

In an announcement on Wednesday, Island Hotels Group Holdings plc (IHGH) announced that the company has completed the purchase and acquisition of the remaining 50 per cent shareholding in Buttigieg Holdings Limited (BHL). BHL is the parent company of the 100 per cent owned subsidiaries R.J.C. Caterers Limited – operating mainly in the retail and contract catering sector; and The Coffee Company Malta Limited and The Coffee Company Spain –  operating the Costa Coffee franchise in Malta and the Eastern Coast of Spain and the Balearic Islands.

In consideration, the company shall be issuing 2m new shares to the selling shareholders pro rata to the number of shares they transferred to the company. The total issued share capital of the company will therefore increase to 387,583,660 shares of €1 each. This increase will have no dilutive effect on existing shareholders with respect to the proposed transaction with IHI. IHGH shares have not been active since March 25, 2015.

RS2 Software plc shares eased 0.7 per cent over 16 trades of 59,660 shares, closing €0.025 lower at €3.40.

On Monday, the Board of Directors of 6PM Holdings plc announced that it has submitted an application to the Listing Authority of the MFSA requesting the admissibility to listing of €13m in bonds redeemable in 2025. Subject to approval, the Issuer will be granting preference to shareholders listed in the share register as at June 8, 2015. The equity was not active this week.

In another announcement, the company reported that it has entered into a share transfer agreement (STA) to acquire all the issued share capital in Blithe Computer Systems Limited from Mr Peter Wright – the current sole shareholder for the total consideration of £4.2m. The STA is conditional upon the company raising enough funding through the issue of €13m in new bonds redeemable in 2025.

Blithe specialises in the provision of systems and solutions for the management of Electronic Patient Records (EPR) within the healthcare sector, particularly in relation to sexual health and substance misuse. The Blithe solutions are currently being used by more than 10,000 healthcare professionals in more than 700 locations throughout the UK. Through this acquisition, the company aims to enhance its portfolio of solutions in the health sector as well as achieve additional business through cross selling. The total gross assets and profits of Blithe as at June 30, 2014 are £1.3m and £70,509 respectively.  

Malta International Airport plc shares declined by a marginal 0.2 per cent over 21 deals of 48,150 shares, closing at €3.36. The company announced that it has become aware of media reports in connection with an internal investigation report in relation to the former CEO Mr Markus Klaushofer. The investigation report was prepared for the company’s internal purposes and in preparation for legal proceedings which are ongoing with the former CEO. The report was sent to the executive police for them to investigate further the facts outline in the report. 

Meanwhile, GO plc shares advanced by 1.3 per cent across 16 deals of 59,200 shares, to close €0.04 higher at €3.14 – thus registering a year-to-date gain of  23.1 per cent. Loqus Holdings plc shares gained 7.4 per cent to €0.13 on a single trade of 1,750 shares.

Plaza Centres plc shares slipped by 1.1 per cent as 35,000 shares changed ownership to close at €0.969. The other negative performers this week were MIDI plc and Malita Investments plc shares having declined by 1.5 per cent and 1.1 per cent respectively. The former witnessed three trades of 16,000 shares, to close at €0.325, while the latter was dealt across four trades of 13,066 shares, closing at €0.94.

In the corporate bond market turnover amounted to €776,640 spread across 30 issues of which 22 gained ground, three slipped and five closed unchanged. The 5.8% International Hotel Investments plc 2023 was the top-performer having advanced by 3.7 per cent, closing at €112.50. On the other hand, the 4.6% HSBC Bank Malta plc € 2017 headed the list of fallers having declined by 1.9 per cent, to close at €104.

In the sovereign debt market the recent sell-off was extended as turnover totalled €25m spread across 26 issues – 25 of which registered a decline. The 4.45% MGS 2032 (II) suffered the worst loss having stumbled by 2.9 per cent, to close at €130.16. Meanwhile, the 5.25% MGS 2030 (I) was the most liquid issue having witnessed a turnover of €14.6m, closing at €138.72.