MSE Trading Report for week ending June 24, 2016

The Malta Stock Exchange (MSE) Index extended its recent winning streak having advanced by 0.45 per cent, despite a marginal fall of 0.5 per cent on Friday following the announced that the United Kingdom had voted to leave the European Union in the referendum. Global equity markets plunged on Friday as investors turned more cautious. The MSE Index closed the week at 4,479.895 points on a turnover worth €2m. A total of 19 equities were active of which gainers and losers tallied at six while seven closed unchanged.

 

MaltaPost plc shares registered the highest gain having increased by 11.1 per cent as three deals of 12,576 shares were struck, to close at €2.

 

HSBC Bank Malta plc (HSBC) shares closed unchanged at €1.60 as 18,253 shares changed ownership across 12 deals. On Thursday, HSBC announced that it has recognised an amount of €7.6m as income, from the cash consideration and preferred stock convertibles into ordinary shares it held in Visa Europe Limited, which was acquired by Visa Inc. on June 21, 2016. This one-off gain will be accounted for in the ‘Net operating income’ in the Income Statement for the period ending June 30, 2016. Another cash payment will be made in 2019, estimated at €1.4m.

Similarly, BOV received total consideration of €29m which will be reflected in the Bank’s financial statements for the financial year ending September 30, 2016, with a deferred cash payment, including interest, to follow in three years’ time.  The Bank will be retaining this consideration within its reserves, in order to strengthen its Core Tier 1 regulatory capital. The banking equity fell by 0.6 per cent throughout the week as 60,786 shares changed hands over 40 transactions, to close at €2.201.

FIMBank plc shares edged 1.1 per cent higher as 14 deals of 511,481 shares were negotiated, closing at $0.92.

On a similar note, Lombard Bank Malta plc shares appreciated by 1.05 per cent across seven trades of 124,269 shares, closing at €2.021.

 

The bank announced that its Board of Directors will meet on August 25, 2016 to approve the Group’s and the Bank’s interim financial statements for the half year ending June 30, 2016.

 

Conversely, Mapfre Middlesea plc shares slipped by 0.5 per cent over five trades of 1,556 shares, to close at €2.19.

 

Elsewhere, GO plc (GO) shares partially erased the previous week’s losses having gained 1.1 per cent as 22 trades of 165,300 shares were executed, closing €0.03 higher at €2.88. The company published the statement of opinion of its board of directors with reference to the offer document published on June 14, 2016 by TT ML Limited, a fully owned subsidiary of Société Nationale des Télécommunications (“Tunisie Telecom”).

GO expressed that the acquisition will be beneficial to the Company as Tunisie Telecom is committed to continue investing in Malta and to support GO’s investments in other segments including 4G, the FTTH roll-out and expansion of data centres. Moreover, the Voluntary Bid should not presently generate any significant changes to the actual employment structure of the company and the conditions of employment of the Company’s employees and management. No opinion is given on the price offered in the Offer Document.

Malta International Airport plc shares stumbled by €0.16 or 3.8 per cent over 13 deals of 11,490 shares, closing at €4.10. On the other hand, International Hotel Investments plc shares recorded an increase for the third consecutive week, closing six per cent higher at €0.689. The equity was active on six transactions of 38,936 shares.

Tigne Mall plc shares closed unchanged at €1.06 as two deals of 1,320 shares were executed. Likewise, Plaza Centres plc (Plaza) shares remained unchanged at €1.07 after a single deal of 1,000 shares was struck on Monday. During the week, Plaza announced that the Board of Directors is scheduled to meet on July 8, 2016 to approve the Company’s Interim Financial Statements for the six months ending June 30, 2016.

Medserv plc shares strengthened by €0.04 or 2.3 per cent across three deals of 43,400 shares, closing at €1.79. On the other hand, Malita Investments plc shares fell by 1.1 per cent across two transactions of 11,200 shares, to close at €0.89.

In the I.T. sector, Loqus Holdings plc shares traded flat at €0.131 over two trades of 3,000 shares. Likewise, RS2 Software plc (RS2) closed unchanged at €3.50 as 16 deals of 117,030 shares were negotiated.  During the week, RS2 announced that during its Annual General Meeting held on June 23, 2016, the shareholders considered several resolutions, including the Financial Statements for the year December 31, 2015 and a net final dividend of €0.0278 per Ordinary Share to be paid on June 31, 2016.

Simonds Farsons Cisk plc shares declined by a minimal 0.3 per cent across six deals of 16,300 shares, closing at €6.28. Similarly, Malta Properties Company plc shares declined by 0.6 per cent over nine transactions of 77,872 shares, to close at €0.507.

Santumas Shareholdings plc shares traded unchanged at €2.35 over a scant 908 shares. Meanwhile, MIDI plc shares also traded flat at €0.38 across two deals of 1,800 shares.

In the corporate bond market 30 issues were active of which eight gained ground, 10 declined and 12 closed unchanged. Turnover amounted to €485,727. The 4.6% HSBC Bank Malta plc € 2017 was the most liquid issue having witnessed a turnover of €65k to close 0.1 per cent higher at €101.60.

After close of trading on Friday, International Hotel Investments plc (IHI) announced that it has submitted an application to list €55 million in Secured Bonds redeemable in 2026. Subject to regulatory approval, IHI shareholders will be given preference to subscribe to the first €30 million of the New Bonds. The Cut-Off Date for such eligibility shall be June 30, 2016.

In the sovereign debt market turnover totalled €24.2m and was spread across 23 issues of which 10 increased and 13 fell marginally. The 3% MGS 2040(I) was the best performer having advanced by 1.5 per cent, to close at €112.