Positive week for long-dated sovereign debt

MSE Trading Report for week ending December 08, 2017

In a four day trading week, the Local Market was dominated by the positive performance registered by Malta Government Stocks as some economic data in the Euro area early in the week disappointed while concerns over a possible US government shutdown increased. Local bonds holding a maturity greater than 14 years, registered the strongest performances among the active issues. A total of 22 issues were active of which 18 gained ground, while four headed south. The 2.1% Malta Government Stock 2039 continued to rally for the fourth consecutive week as the bond’s price added 0.3% to last week’s closing at €102.50. Turnover in this market reached €8.6m.

Meanwhile, in the corporate debt market a total of 36 issues were active of which, 13 headed higher, while 14 declined. Two new issues commenced trading during the week being the 3.75% Bortex Finance plc Unsecured Bonds 2027 andthe 3.75% Virtu Finance plc Unsecured Bonds 2027, both of which registered advancements closing at €100.50 and €102 respectively.

The MSE Equity Total Return Index erased last week’s increase as the index closed 0.24% lower at 8,485.097 points. A total of 17 equities were active during the week of which eight headed north, while six headed the opposite direction. The decrease in the index was mainly registered due to negative performances in the major banks; particularly HSBC Bank Malta plc and Bank of Valletta plc, with International Hotel Investments plc, Malta International Airport plc and GO plc easing the downward pressure as all three equities closed higher.

In the banking industry, Lombard Bank plc shares outperformed its peers as a single trade of 5,000 shares on Thursday was enough to push the price 0.5% higher to close at €2.211.

In the same sector, HSBC Bank Malta plc andBank of Valletta plc shares both closed in negative territory. HSBC shares traded 12 times generating a total turnover of €31,450 closing 3.3% lower at €1.799.

Meanwhile, BOV shares closed in the red as 60 trades saw 196,484 shares exchange hands. The equity’s price fluctuated between highs of €1.79 to lows of €1.74, settling at the €1.75 price level

On Thursday, BOV announced that the offer period in respect of its rights issue of 105,000,000 new ordinary shares, which closed on December 6, 2017, was oversubscribed.  The amount of subscription monies received during the offer period in respect of the Offer amounted to over €197 million resulting in an oversubscription of approximately €47 million.

Elsewhere, four trades in FIMBank plc amounting to 245,600 shares saw the price of the equity decline by 0.8% to close the week at $0.61.

In the telecommunications sector, GO plc shares closed the week in the black as the equity gained 0.9% to close the session at €3.58. A total of four transactions managed to generate a total turnover of €16,740.

Heavyweight, International Hotel Investments plc shares spiked mid-week as two trades amounting to 7,236 shares managed to add 6.7% to its price closing at €0.62.

Last Thursday, Malta International Airport plc (MIA) announced that the   company registered solid results for the month, with November becoming the fourteenth consecutive month to achieve double-digit growth in passenger movements. In November, the airport hosted over 55,000 passengers more than it did in 2016, closing off the month with a total of 405,724 passenger movements. This translates into an increase of 15.8% over last year. The month’s top five markets accounted for more than half of the total passenger movements for November. The United Kingdom continued to top the leader board with over 100,000 passenger movements, followed by Italy, Germany, France, and Belgium. While the first four markets all registered varying levels of growth, Belgium lost around 570 passenger movements when compared with 2016.  The biggest spike in passenger numbers in November was observed on the Polish market, which grew by 76.3% over last year.

In terms of secondary market activity a total of 7,900 MIA shares were dealt over four deals as the equity’s price increased by a marginal 0.22%, closing at €4.66.

Insurance firm Mapfre Middlesea plc, registered a single trade over slim volume managing to add 1.1% to its value to close at the €1.80 price level.

The Board of Directors of Simonds Farsons Cisk plc announced that at a meeting held earlier on Thursday, the Board of the Planning Authority had unanimously approved a permit for the creation of a business park along Mdina Road, Mriehel consisting of International Grade A offices with landscaped courtyards and a naturally ventilated multi-level car park for approximately 700 cars which will be known as Trident Park. The development is expected to commence during the first half of 2018, and completed within three years. A total of seven trades were recorded during the week as turnover reached €29,464. The equity recouped 1.6% of its recent declines to close at €8.90 after touching a weekly high of €9.

Over a total turnover of €43,064 spread over 10 transactions, RS2 Software plc closed flat at the €1.52 price level.

In the oil and gas sector, Medserv plc shares lost a marginal 0.1% to close the week at the €1.12 price level. A total of three deals saw 3,740 shares exchange hands.

On Wednesday, the Board of Directors of PG plc resolved to distribute a net interim dividend of €1,700,000, equivalent to €0.01574 net (€0.02422 gross) per ordinary share. This dividend shall be paid on the December 11, 2017 to shareholders who were on the company share register as at December 1, 2017. The equity held firm at its €1.45 price level despite being active six times during the week generating a total turnover of €4,894.

Grand Harbour Marina plcshares surged by 5.1% over a single trade of 1,000 shares on Tuesday closing at €0.763.

Meanwhile, on Thursday, Malta Properties Company plc announced that as per announcement issued on January 31, 2017 outlining the agreement between SLM Property Company Limited and Toncam Properties Limited (“Toncam”) regarding the promise of sale agreement for Toncam to acquire the Sliema Old Exchange. Both parties have entered into an agreement on Thursday to extend the promise of sale agreement to August 1, 2018. The equity closed the week at a fresh all-time low of €0.455. A total of 16 trades managed to generate a total turnover of €39,573.

In the same sector, MIDI plc shares gained 1.5% as a single trade over a slim volume managed to push the price to the €0.35 price level. On the other hand a single trade of 35,000 shares in Tigne Mall plc shares saw the price shrink by 0.5% to close at €0.965.

Elsewhere, three trades amounting to 37,000 shares on Monday were not enough to alter the price of Plaza Centres plc shares to close the week unchanged at €1.02.