MSE Index declines by 1.47% in 2017

MSE Trading Report for week ending December 29, 2017

In a three-day week the MSE Equity Total Return Index ended 2017 on a positive note having advanced by 1.34%.  Despite this performance, the index’s yearly performance remained negative, closing 1.47% lower at 8,669.132 points. A total of 14 equities were active during the week of which nine advanced, while three closed in the red. Total turnover during the week amounted to €1.097 million.

In the banking sector, Bank of Valletta plc (BOV) shares continued where they left off last week depreciating by 2.7% to close the week at €1.80 – with the equity registering a negative performance of 13.9% during the year. A total of 86 transactions managed to generate a total turnover of €484,565.

BOV’s 105,000,000 new ordinary shares, resulting from the Rights Issue, commenced trading on Wednesday, after being admitted to the Official List of the Malta Stock Exchange on December 22, 2017.

Banking counterparts, HSBC Bank Malta plc and Lombard Bank plc shares traded in positive territory. HSBC shares curbed some of its year-on-year decline as the equity appreciated 1.4% to close at €1.784 – registering a yearly decline of 6.1%. Meanwhile, Lombard shares bounced back into positive territory closing the week 2.2% higher at the €2.30 price level – closing flat year-on-year.

In the same sector, a single trade of 14,959 shares in FIMBank plc on Thursday did not manage to veer the equity’s price, closing unchanged at $0.69. The equity was one of the weakest performers during the year as it declined by 22.5%.

Malta International Airport plcshares closed on a positive note as the equity appreciated by 1.3% closing at €4.70. The equity was one of the best performers during the year, having advanced by 16.1%.

In the telecommunications sector, GO plc traded twice on Wednesday as 1,830 shares exchanged hands to close the week relatively unchanged at €3.549. Year-on-year the equity managed to appreciate by 8.5%.

RS2 Software plcshares closed the year on a positive note as the equity managed to add 2.7% to its share price to close at €1.54. A total turnover of €137,116 was spread between 14 transactions. Despite the positive performance, the equity still closed 8.3% lower in 2017.

Retail conglomerate, PG plc hit a 13 week-low on Thursday hitting the €1.40 price level. Despite the decline, the equity managed to notch the second best performance among other listed equities during this year gaining 40% since its listing back in May. This week, eight trades managed to generate a turnover of €54,780.

In the oil and gas industry, Medserv plc shares spiked on Friday as a single trade over a slim volume managed to lift the price by 10.4%. The equity closed the week 10.6% higher at €1.259 as a total turnover of €54,280 was generated between 32 transactions.

In the property sector, Tigne Mall plc, Malta Properties Company plc (MPC) and Malita Investments plc shares spiked registering gains of 8.9%, 11.4% and 9.3%, closing at €1.089, €0.48 and €0.82 respectively. Despite this week’s positive performances, all three equities closed lower year-on-year with MPC registering the weakest performance among the three, being that of 18.6%.

Meanwhile, its peer MIDI plc also traded in positive territory, gaining 0.9% on its price to close at €0.35 and registering a marginal decline of 0.3% in 2017.

Elsewhere, Loqus Holdings plc traded twice on slim turnover, to close flat at €0.175.

On Thursday, Global Capital plc made reference to its half-yearly report for the period ended June 30, 2017 published on August 30, 2017 in which the Company announced the Board’s intention to conduct a rights issue in respect of an amount of shares not exceeding €15,000,000 in nominal value before the end of 2017.

During the last quarter of 2017 the Company continued the process of redefining its business strategy in the context of its plans to strengthen its position in the local insurance market and to passport its insurance products in other EU jurisdictions, while at the same time preparing itself for the implementation of the Insurance Distribution Directive in the course of 2018.

The redefinition of the Company’s business strategy, which is expected to be finalised in the first half of 2018, is likely to affect the Company’s optimum capital levels. As a result, the Board has decided that it is in the best interests of the Company and its shareholders as a whole to postpone the proposed rights issue until such time as the capital plans underpinning its renewed business strategy have been adequately defined in the light of the evolving business and regulatory environment. The Board, therefore, expects that the Company will be conducting the proposed rights issue during the course of 2018 to raise such amount of capital as may be determined to be appropriate by the Board, subject to the approval of the Listing Authority.

In the corporate debt market a total of 25 issues were active of which, nine headed north, while seven headed in the opposite direction. The 4.4% Von der Heyden Group Finance plc Unsecured €2024 registered the highest turnover over 10 transactions of 197,000 shares closing at €99.50.

Meanwhile, in theLocal Sovereign Debt market, a total of 18 issues were active of which the absolute majority amounting to 14 headed lower, while four gained ground. Longer dated stocks having a maturity greater than 13 year experienced the largest declines, with the only exception being the 4.1% MGS 2034 (I) which increased in price by 0.2% to close at €132.64.

We wish our readers a Happy New Year.