MSE index recovers marginally as gainers and fallers tally

The MSE Equity Total Return Index recovered a portion of last week’s loss as the index closed 0.15% higher at 8,661.208 points, as a total of 19 equities were active during the week of which gainers and fallers amounted to six. In the equities market, a total of 230 deals generated a turnover of €2,666,120.

The banking industry was responsible for over half of the total turnover generated in the equities market this week, as the largest two equities traded heavily.HSBC Bank Malta plc was down by 4.12% to close the week at €1.86 as the equity turned ex-div on Monday. Trading volume totalled 349,474 shares over 38 transactions.

On Thursday, Bank of Valletta plcannounced that the board is scheduled to meet on March 23, 2018 to consider and approve the group and the Bank’s audited financial statements for the 15-month period from October 1, 2016 and December 31, 2017. The board will also consider the declaration of a final dividend to be recommended to the bank’s Annual General Meeting. BOVwas the most liquid equity as 443,055 shares traded over 85 deals. Despite this trading activity however, the equity closed unchanged at €1.83 for the second week running.

On Wednesday, FIMBank plcpublished a preliminary statement of the Group’s results for 2017 which showed a 43.98% increase in profit for 2017 over 2016. This amounts to a profit figure of $7.7 million, compared to a positively restated profit of $5.4 million for the previous year. Operating income before net impairment increased by 12% from $46.1 million to $51.7 million, backed by a rise in net interest income of $3 million, and also a $3.7 million improvement in net fee income. The board will not be recommending the payment of a dividend to the Annual General Meeting of shareholders. The announcement did not have a direct impact on the share price yet, as it closed the week unchanged at $0.605. A total of 23,466 shares were exchanged over four deals.

A single transaction of 505 Lombard Bank Malta plc shares dragged the share price down by a sizable 16.67%, to a 21-month low of €2.00.

In the telecommunications sector, GO plc traded heavily as 168,360 shares changed hands over 12 deals. As a result, the equity drifted 1.11% lower to €3.56.

Malta International Airport also recorded a sizable trading volume of 33,325 shares, but ended the week at the previous week’s closing price of €4.94. In the insurance industry, Mapfre Middlesea plc performed well this week, climbing 3.8% to €1.91 across 15 trades of a combined 56,046 shares.

On Tuesday, GlobalCapital plcannounced that it submitted a binding offer to the Special Administrator of Cyprus Popular Bank Public Co. Ltd. for the purchase of its 49.01% stake in Lombard Bank Malta plc, subject to all necessary regulatory and corporate approvals. Global Capital Life Insurance Ltd, a fully-owned subsidiary of Global Capital plc, is already the second largest shareholder of Lombard Bank, after the Cyprus Popular Bank with a 5.54% stake. In the announcement, the company said that this offer is supported financially by York Capital, a leading private equity fund, however, various local media sources reported that the director of York Capital has since denied that such an agreement had been reached by the time of the announcement. On Friday, the company clarified that York Capital’s relationship with the company has been limited to a proposed financing of the company and it is not presently involved in the bid. The company also confirmed that its binding offer to Cyprus Popular Bank still stands. In terms of trading, the equity was not active during the week.

RS2 Software plc was the best performer this week as it continued its recovery with a 7.69% gain in its share price to €1.40. A total of 89,069 shares traded across 17 deals.

International Hotel Investments plc kicked off the week with a significant loss but eventually managed to bounce back, closing unchanged at a price of €0.62. Six deals were struck as 19,927 shares traded.

A total of 16,334 MaltaPost plc shares were exchanged over five deals but price movements in the last two days of the week cancelled each other out, ultimately closing unchanged at €1.90.

Simonds Farsons Cisk plctraded flat at €6.95, despite recording four deals on slim volumes.

Similarly, a single deal of 9,400 Grand Harbour Marina plcshares had no impact on the share price of €0.73. After market close on Friday, the company announced that the board of directors is scheduled to meet on March 27, 2018 to consider and if deemed appropriate, approve the Company’s financial statements for the financial year ended December 31, 2017.

The retail conglomerate, PG plcreached a one-month high of €1.38, translating to a 2.22% appreciation. Trading volume amounted to 34,350 shares across four deals.

In the oil sector, 26,060 Medserv plc shares traded over five deals. The outcome was a 2.61% decline in share price, settling at €1.12.

On Tuesday, Plaza Centres plcannounced that the board is scheduled to meet on Tuesday March 20, 2018 to consider and approve the group’s financial statements for the financial year ended December 31, 2017. The board shall also consider whether to declare and recommend the payment of a dividend to the shareholders. The equity was not active during the week.

Loqus Holdings plc logged the weakest performance of the week as two transactions of 7,500 shares dragged the price down by a substantial 28.19% to the €0.135 price level.

In the property sector, Malita Investments plc traded in negative territory as it logged a loss in value of 4.09% to €0.82 as 45,500 shares traded over six deals.

On Wednesday, MIDI plcannounced that the previously announced guardianship deed with the Manoel Island Foundation and the Gzira Local Council in respect of Manoel Island is now in effect. The development shall commence once the necessary planning approvals of the Masterplan are received. The terms of the agreement bind MIDI to work in line with certain commitments governing the Manoel Island Public Park, the Foreshore, the swimming zones, Fort Manoel, and building heights on the island. A couple of transactions of a combined 68,600 shares pushed the equity price up by 3.59% to €0.346.

In the same sector, Malta Properties Company posted a modest gain of 0.4% to close at €0.50 as 23,100 shares traded over five transactions.

Trident Estates plc traded twice this week as 3,499 shares changed hands. The result was an advancement in share price of 1.65%, ending the week at €1.85.

In the corporate debt market, gainers marginally outweighed fallers as out of 35 active bonds, 14 traded higher and ten drifted lower.

The 4% Stivala Group Finance plc Secured € 2027 logged the best performance this week as it recovered last week’s loss by climbing 2.21% to €104.25.

At the other end of the spectrum, the 4.5% Grand Harbour Marina plc Unsecured € 2027 dropped 2.33% to €104.51.

With regards to Malta Government Stocks, yields were predominantly down this week, as from 27 active issues, 15 headed north and nine lost ground.

The most notable price movement was that of the longest dated government bond, the 2.4% MGS 2041, as it extended its winning streak to three straight weeks by posting further gains of 0.94%.

Most losses were registered in the shorter-dated issues, particularly the 7.8% MGS 2018 which drifted lower by 0.4% to close at €102.51.