Negative investor sentiment drags MSE Index down

MSE Trading Report for week ending April 6, 2018

The MSE Equity Total Return Index extended its negative trend as it fell by a significant 1.4% to end the week at a 15-week low of 8,556.237 points. A total of 20 issues were active during the week of which ten closed lower, while five posted gains. Total turnover during the week was slightly higher at €1.87 million, spread over 252 transactions.

More than a third of this turnover was generated by Bank of Valletta plc as 379,520 shares traded over 109 deals. The outcome was a minimal loss in value of 0.28%, closing at €1.795.

On Wednesday, various media sources reported that HSBC Holdings plc CEO, John Flint, and chairman, Mark Tucker are considering the possibility of an exit or sale from the group’s smaller consumer operations, such as Bermuda, Malta and Uruguay. In response, HSBC Bank Malta plc issued an announcement on Thursday, stating that at this stage the company has no information to announce to the market as it is company policy not to comment on speculative stories. In the aftermath of this announcement, the equity posted successive losses, ultimately closing 7.53% lower at a price of €1.72, the lowest price recorded in almost a year and a half. Trading volume amounted to 141,077 shares over 27 transactions.

Despite the positive results published last month, it seems investors are currently reacting to the announcement of the rights issue of FIMBank plc, as its share price slumped 11.57% this week to $0.535, despite the positive results announced last month by the bank. A total of seven deals of a combined 49,376 shares were recorded. As announced earlier, shareholders are entitled to subscribe to 2 new ordinary shares for every 3 ordinary shares in their possession as at March 22, 2018 at a subscription price of USD0.55. Lapsed rights will first be offered through an Intermediaries offer.

Within the same sector a 1.67% decline in the value of Lombard Bank Malta plc shares was registered as a result of a single deal of 400 shares struck late yesterday, closing at €2.36.

In the telecommunications sector, GO plc shares recovered the previous week’s losses as it advanced by 2.86% to recapture the €3.60 price level. The equity traded five times as 20,211 shares changed hands.

Yesterday, Malta International Airport plc announced its traffic results, showing a 22.5% increase in traffic during March when compared to the same month of the previous year. This means that the winter season has been concluded with a total upturn in passengers of 17%. A total of 1.8 million passengers were hosted at the Airport during the period stretching from November 2017 and March 2018. Although summer remains the busiest season, this increase in winter traffic was the result of collaborative efforts to promote Malta as a year-round destination. Passenger movement growth was registered in parallel with an 18.1% improvement in seat capacity and an increase of 16.6% in aircraft movements, as a result of five new winter routes and increased frequencies on existing ones. The United Kingdom, Italy, Germany, France and Belgium remain the company’s top markets, accounting for over 1.3 million passenger movements of the airports total traffic for winter. This announcement had no effect on the share price yet as the equity closed unchanged at €4.90 despite a traded volume of 52,955 shares.

On Thursday, International Hotel Investments plc announced that its Annual General Meeting shall be held on Tuesday, June 5, 2018. Although the equity traded rather heavily as 154,973 shares were exchanged, performances on Wednesday and yesterday cancelled each other out so that the share price ultimately closed unchanged at €0.62.

In the insurance sector,Mapfre Middlesea plcwas also active as a total of 5,861 shares changed hands over four deals. This activity however had no effect on the weekly closing price of €2.10.

GlobalCapital plc plunged 14.29% as four deals of a combined 33,786 shares were all executed mid-week, at a price of €0.30.

The worst performer of the week however, was Loqus Holdings plc as a single transaction of 50,000 shares dragged the equity price down by a considerable 25.93% to the lowest price in three and a half years of €0.10.

The weekly closing price of RS2 Software plc experienced no change as the equity closed at €1.43 despite a turnover of €48,054 over 13 deals.

A total of four transactions of 4,360 Simonds Farsons Cisk plc shares resulted in a modest price drop of 0.72% to €6.90.

Retail conglomerate, PG plc was down by 3.68%, settling at €1.31 – the lowest price level in almost nine months. The equity traded just twice as 20,000 shares were exchanged.

In the oil sector, Medserv plc from last week’s loss by climbing 3.64% to regain the €1.14 level. Trading volume totalled 38,200 shares across eight deals.

A single deal of 53,000 Grand Harbour Marina plc shares pushed the share value upwards by 2.74% to €0.75.

Property firm, Plaza Centres plc surrendered two weeks’ gains as it slipped 3.77% back to a price of €1.02. This was the result of a couple of deals of a combined 3,000 shares.

Its peer, Malita Investments plc put together some solid gains as it registered the largest price increase for the week of 5%, closing at €0.84. The equity traded 15 times as 180,100 shares were exchanged.

Similarly, MIDI plc traded somewhat heavily as 225,000 shares changed hands over three deals, all executed at a price of €0.35, 1.16% above the previous week’s price.

Malta Properties Company plc extended its losing streak to three straight weeks, as it drifted a further 1.7% lower to €0.462. A total of 30,960 shares traded across eight transactions.

Trident Estates plcshares also traded eight times, as 21,570 shares were exchanged, however one deal yesterday cancelled out earlier gains during the week to close unchanged at €1.90.

Yields in the corporate debt market were up, as out of a total of 28 active issues nine closed lower while just four headed north. Heading the list of fallers was the 5% GlobalCapital plc Unsecured € 2021 which depreciated by another 2.76% this week to return to a price of €97.

One of the few positives was the 4% International Hotel Investments plc Secured € 2026 which managed to recover three weeks’ losses of 1.47% to recapture the €103 price level.

Conversely, yields in the sovereign debt market were down as 13 issues posted gains, five contracted and one traded flat. The best performer was the 4.5% MGS 2028 (II) as it gained 0.75% to close at €133.

In spite of the positive overall performance the three longest-dated issues all posted falls, particularly the 2.1% MGS 2039 (I) which lost 0.74% in value.