MSE Trading Report for week ending February 2, 2018

The MSE Equity Total Return Index oscillated between positive and negative territories over the week but ultimately closed at 8,598.897 points, a 0.11% weekly decline. In the equity market, a total of 19 companies were active of which six gained ground, while nine headed south. Total turnover declined significantly from €2.14 million to €1.42 million over 229 deals.

Bank of Valletta plc was one of the only two equities active in the banking sector, with trading value totalling €616,304 across 83 transactions. Despite this activity, the equity closed unchanged at €1.81.

HSBC Bank Malta plc shares bounced back from the previous week’s loss to recapture the €1.79 price level. The increase in value of 1.7% was the outcome of 20 transactions in which 80,733 shares were traded.

In the telecommunications sector,GO plc announced that its Board is scheduled to meet on March 6, to consider and approve the company’s audited financial statements for 2017, and to consider the declaration of a final dividend to be recommended to the company’s Annual General Meeting. The equity posted a gain of 1.14%, closing at €3.56 as a combined 16,791 shares were exchanged over 13 trades.

In the food and beverage industry, Simonds Farsons Cisk plc reversed the marginal gains registered during the previous week as it retreated by 3.85% to close at €7.50. The equity was traded 13 times with volumes totalling 10,792 shares.

With regards to its spin-off company, Trident Estates plc, shares were admitted to listing on the Official List of the Malta Stock Exchange on Tuesday this week and commenced trading on Wednesday. The first week of trading was very encouraging for the company as it posted strong gains of 23.4% over its opening price of €1.24 to close at €1.53. A substantial turnover of 132,789 shares was generated over 29 deals.

As stated in the prospectus dated December 18, the company will be seeking financing through a rights issue of 15 million new ordinary shares of €1 planned for 2019. The company has now announced that its three main shareholders – Farrugia Investments Ltd, M.S.M. Investments Limited and Sciclunas Estates Limited – have signed an undertaking agreement for the subscription of the rights issue proportionate to their shareholding in the company at the time of the rights issue. The company also announced that it has secured loans with a leading local bank, leading the way for the commencement Trident Park Project.

A single deal on slim volume of International Hotel Investments plc shares pushed the share price upwards by 3.23% to reach €0.64.

Malta International Airport plc shares dropped by 2.86% to the €4.76 level as a total of 12,132 shares were exchanged over 11 deals.

MaltaPost plc was also active as a turnover of 5,701 shares was generated over three transactions. As a result, the equity continued on the previous week’s negative trend, as it drifted 4.02% further lower to €1.91.

In the insurance industry, negative sentiment in Mapfre Middlesea plc was predominant as it traded in negative territory for the third week in a row. The equity dropped by 0.56% to end the week at €1.78 after 12,124 shares were traded over eight deals.

Similarly, RS2 Software plc continued its negative start to the year as it extended its losing streak to five successive weeks. The share price declined by 2.1% to €1.40 as a result of 16 transactions in which 48,670 shares changed hands.

A single deal worth just €1,440 dragged the share price of Grand Harbour Marina plc down by 5.26% into record territory, closing at an all-time low of €0.72.

The retail conglomerate PG plc, traded at a 27-week low of €1.34 but it ultimately closed 2.88% lower at €1.35. Trading volumes amounted to 19,100 shares spread across eight deals.

The oil and gas logistics specialist Medserv plc surrendered some of the impressive gains registered last week as it was down by 3.23% to €1.20. This was the outcome of three transactions in which 11,400 shares changed hands.

Santumas Shareholdings plcclosed the week 0.67% higher at €1.51. This was the outcome of five deals in which 18,505 shares changed hands.

In the property sector, MIDI plc advanced by 2.35% to €0.348 as 115,700 shares changed hands over seven deals.

The share price of Malita plc shifted in the opposite direction as a single transaction worth €9,828 caused the equity to edge 0.59% lower, closing at €0.84.

In the same sector, a total of 31,000 Plaza Centres plc shares and 11,000 Malta Properties Company plc shares were exchanged over the week, but both these equities closed unchanged at €1.02 and €0.515 respectively.

Tigne Mall plc also traded flat despite being active on slim volume.

The Prospects MTF market was also active as three issues were active, none of which registered a price movement except for the 5.25% Klikk Finance plc € Unsecured 2027 which was down by 5.66% after a lengthy period of inactivity.

Yields in the localsovereign debt market were up this week, as all 23 active issues drifted lower with the exception of two non-movers. The 2.5% MGS 2036 broke a three-week winning streak to log the worst performance of the week, a loss in value of 1.24%.

The corporate debt posted rather mixed performances as out of 32 active issues, 15 traded higher while 11 bonds lost ground. The most notable price movement was registered by the 5% GlobalCapital plc Unsecured € 2021 which posted a loss of 1.91% this week after trading flat for three weeks in a row.

The gain registered last week by the 5.35% Bank of Valletta plc Subordinated € 2019 proved unsustainable as it surrendered a large portion of these gains, declining by 1.68% to settle at €102.06.

On the positive side, the 4.25% Corinthia Finance plc Unsecured € 2026 put on a solid 1.43% to close at a price of €103.98.

The 5.75% International Hotel Investments plc Unsecured € 2025 continued to trade in positive territory for the third successive week, as it pushed forward by a further 0.82%to close at €108.79.