MSE Trading Report for week ending May 25, 2018

The MSE Equity Total Return Index partially erased last week’s gain as it slipped 0.691% to 8,479.915 points. A total of 22 equities were active this week, 12 of which lost ground, while another five increased in value. An impressive turnover of €2.9 million was generated over 305 deals, significantly higher than last week’s figure of €1.9 million. The banking industry was one of the main catalysts for the negative performance as all four equities posted losses.

 

Bank of Valletta plc traded heavily as 143,977 shares changed ownership over 58 deals. As a result, the equity edged 0.29%, to a price of €1.745.

 

Its peer, HSBC Bank Malta plc followed suit as it closed the week at €1.71, a decline of 1.72%. Trading volume totalled 86,900 shares across 17 transactions. On Friday, the company issued an interim directors’ statement, reporting a decline in profit before tax for the first three months of 2018, when compared to the first quarter of 2017.  This decline was in line with management expectations, as it is a reflection of lower corporate loans and advances, lower interest rates, and risk management actions.

 

Revenue also decreased when comparing the two periods, primarily as a result of lower revenue from the investment book and lower sales in the insurance business. Total impairment positions in loan balances in the first quarter of 2018 remains well within management expectations while loans and advances to customers slightly increased, thus allowing the bank to build momentum to increase the loan book growth.  Both retail and commercial customer deposits increased which allowed the bank to maintain its robust liquidity position.

 

The worst performing banking equity this week was FIMBank plc, as it sank 5.45% to $0.52. This was the outcome of 11 trades of a combined 122,339 shares.

 

A sole transaction of 9,500 Lombard Bank Malta plc shares dragged the share price down by 1.71% to €2.30.

 

Telecommunications company GO plc registered a similar performance as it was down 1.72% to close at €3.42. Over the week, 13 deals of a combined 89,377 shares were recorded.

 

MIDI plc was one of the few positives this week, as it soared a remarkable 15.18% over 35 transactions of 491,528 shares. The equity reached an all-time price of €0.448, before retracting to €0.44 as the equity turned ex-dividend on Friday.

 

Also in the property market, Malta Properties Company plc alsoenjoyed a strong week as it hiked 6.8% as a result of four straight positive sessions. The equity closed at €0.55 after recording 23 deals of 150,168 shares.

 

Malita Investments plc also traded heavily as 305,624 shares were negotiated across 21 trades. However, the share price moved in a downward direction by 2.33%, closing at €0.84.

 

The worst performer of the session was also in the property sector, as Trident Estates plc plunged 9.09% to €1.40 across seven deals of 13,514 shares.

 

On Wednesday, Trident announced the financial results for the year ended January 31, 2018. They equity generated a profit before tax of €437,000, significantly lower than the €5.1 million registered during the previous year.

 

One of the main drivers for this change was the fact that fair value gains diminished from €4.7 million in the previous period, to just €165,000 this year. A significant increase from €51,000 to €461,000 in administrative expenses, mostly due to additional payroll expenses, had a negative impact on operating profit, which was down by 55% to €256,000. On the other hand, revenues from rental income increased by 9.5%, following the renegotiation of the lease agreements with Food Chain. As a result, the Earnings per Share figure dropped to €0.907.

 

No other property equities registered price movements this week as both Plaza Centres plc and Tigne Mall plc closed unchanged. Plaza Centres recorded six deals of a combined 61,000 shares ahead of its Annual General Meeting which will be held next Wednesday. Tigne Mall generated a turnover of €158,720 over four deals.

Malta International Airport plc(MIA) erased all the gains registered during the week to close unchanged at €4.96 on Friday, despite generating a turnover of €329,417 over 33 deals.

 

On Thursday, MIA announced that it has finalised a new collective agreement for all employee grades within the company. The agreement provides annual salary increases to its employees, totalling an accumulated growth of 17.5% by the year 2022. It was also agreed that a more efficient and flexible shift structure will be implemented, to cater for the needs of the company; and annual performance bonuses linked to enhance quality management and the attainment of the company’s strategic goals.

 

The most liquid equity was Simonds Farsons Cisk plc as 82,455 shares traded across nine transactions. The share price moved in a negative direction, falling by 2.24% to close at a one-and-a-half-year low of €6.55.

 

In the retail sector, PG plc followed suit, as it lost 3.03% in value to €1.28. A volume of 96,200 shares were executed over 10 deals.

 

RS2 Software plc fell to a 5-year-low of €1.10 on Wednesday, before partially recovering to €1.17, limiting the loss to 3.31%. In total, 135,654 shares changed hands over 30 deals.

 

A couple of trades of 49,710 GlobalCapital plc shares had a negative impact on the share price as it sank a substantial 5.88% to €0.32.

 

Also in the insurance sector, a single transaction of 590 Mapfre Middlesea plc shares had no bearing on the share price of €2.04.

 

SanTumas Shareholdings plc also traded on slim volume as 10,881 shares changed hands over two deals. The effect on the share price however was positive, as it started a recovery from last week’s significant drop, regaining 4%, to close at €1.04.

 

Medserv plc advanced 1.82% to a price of €1.12, as a result of six transactions of 51,000 shares executed during mid-week.

 

Grand Harbour Marina plctraded flat at €0.75 across three deals of 57,000 shares.

 

International Hotel Investments plc traded eight times as 46,693 shares were exchanged. As a result, the equity recovered last week’s loss, as it put on 1.61% to reach the price of €0.63.

 

MaltaPost plc closed 2.78% lower at €1.75, being the outcome of five trades on slim volume.

 

In the corporate debt market, a total of 42 issues were active during the week, generating a turnover of €1.9 million over 203 deals. Gainers totalled 20 securities while fallers amounted to half.

 

On a positive note, the 5.75% International Hotel Investments plc Unsecured € 2025 partially recovered the previous week’s loss as it climbed 1.86% to €109.50.

 

The best performer however was the 5% Dizz Finance plc Unsecured € 2026 as it was up by a considerable 3.66% to a price of €108.85.

 

The 4.8% Bank of Valletta Plc Sub € 2020on the other hand, headed the list of fallers as a price decline of 1.95% was recorded, closing at €100.80.

 

Yields in the sovereign debt market were up as from the 24 active issues, 19 traded lower while the rest headed north. A total turnover of €4.4 million was generated over 142 transactions in the Malta Government Stocks market.

 

The longer-dated issues posted the largest losses in value, in fact the largest decline was registered by the longest-dated issue, the 2.4% MGS 2041 (I) which drifted 1.81% to €106.04.

 

The most liquid issue was the 2.1% MGS 2039 (I) representing a third of the total turnover generated in the sovereign debt market. The outcome was a price decline of 0.44%.

 

One of the few exceptions was the 2.2% MGS 2035 (I), gaining 0.8% to closing at €105.20.