Local sovereign yields climb higher

Local sovereign yields closed the week higher as the prices of 23 Malta Government Stocks lost ground, while no issue closed higher. The bulk of the losses were registered by the long-dated issues, particularly the 3% MGS 2040 (I), which depreciated by 1.02% to €116.45. The largest decline however was that of the 3.2% MGS 2019 (V) which traded 4.26% lower at €103.31, after months of inactivity.

In the corporate debt market, performances were more balanced as out of 41 active bonds, gainers amounted to 17, while fallers totalled 16 securities.

The 3.5% Bank of Valletta plc € Notes 2030 S2 T1 managed to overturn last week’s negative performance, climbing 1.77% to €100.25.

Conversely, the 5.3% Mariner Finance plc surrendered last week’s gain to return to the €108.50 price level, translating to a loss in value of 1.96%.

The worst performer was the 4.5% Grand Harbour Marina plc Unsecured € 2027 as it posted falls of 3.20 %, down to a price of €101.35.

The 3.85% Hili Finance Company plc Unsecured € 2028 closed its first week of trading 2% higher than its par value, at €102.

The MSE Equity Total Return Index closed flat this week, as it closed a minimal 0.006% lower at 8,721.690. A total of 18 equities were active, as six equities advanced and five headed south. Total turnover was marginally higher than the previous week as €1.2 million worth of shares were exchanged over 147 deals.

The main drag on the index was Bank of Valletta plc as it continued on last week’s negative performance, in the aftermath of the news that the Italian court has rejected the bank’s appeal regarding the Deiulemar case. The equity started the week in positive territory, but these gains proved unsustainable, as the share price ultimately closed a further 1.45% lower, at €1.70. BOV generated the highest turnover as 210,766 shares changed hands across 52 deals.

On Tuesday, BOV announced that the board of directors is scheduled to meet next Tuesday, July 31, to consider and approve the group’s and the bank’s interim financial statements for the first half of 2018.

Its peer HSBC Bank Malta plc followed suit as it slipped 0.53% to €1.87. In total, 20 trades of a combined 71,384 shares were recorded.

The only other active equity in the banking industry, Lombard Bank Malta plc recorded a single deal on slim volume, executed at an unchanged price of €2.30.

Malta International Airport plc published its interim financial statements for the first half of 2018 on Thursday. The company saw a 16.3% increase in passenger movements compared to the same period last year, after recording double digit-growth during each month of the period. This stemmed from an enhanced winter schedule, and the launch of a summer schedule offering more than 100 destinations, which led to a 14.5% growth in quarter 2.

This positive performance translated to an increase in revenue of 11.5%, to reach €40.9 million in 2018. Other operating costs increased by just 5%, while staff costs were up 14.8%. As a result, net profit improved by 18.3% to €13 million. The group is also benefitting from 65.2% lower interest expenses, following the settlement of €33 million worth of outstanding loan balances.

The group is proposing a net dividend of €0.03 per share to be paid by no later than September 14, 2018 to all shareholders on the register as at August 22, 2018.

Following the announcement, the equity closed the week strongly, setting a new all-time high of €5.20. The equity traded heavily as 13 deals were recorded, as 64,626 shares changed hands, translating to a turnover of €327,029.

Telecommunications company, GO plc partially recovered the previous week’s fall, gaining 0.59% to €3.42. Trading volume totalled 15,809 shares over 6 deals.

Conversely, International Hotel Investment plc erased a portion of last week’s gain by drifting 0.79%, settling at a price of €0.63. The equity traded three times as 6,000 shares changed ownership.

MaltaPost plc recorded a sole deal of 1,329shares, but this had no bearing on the share price of €1.65.

In the insurance industry, Mapfre Middlesea plc partially surrendered last week’s gain, as it posted falls of 1.51% to close at €1.96. This was the outcome of three trades of a combined 3,901 shares.

In the same sector, Global Capital plc closed unchanged at €0.30 after trading twice on slim volume.

RS2 Software plcput on a modest 0.83%, reaching €1.21. This was the result of six deals in which 2,010 shares traded.

In the food and beverage sector, Simonds Farsons Cisk plc recorded a solid gain of 2.74%, closing at a six-month high of €7.50. This was the result of ten transactions of 19,828 shares.

Retail conglomerate,PG plc closed unchanged at €1.33, despite generating a sizeable turnover of €40,354.

On a negative note, Medserv plc shares closed the week in the red, as the equity lost 1.74% of its value to €1.13. This was the result of just one deal of 2,100 shares. On Friday, the company announced that its board of directors is set to meet on August 27, 2018, to consider, and if thought fit, approve the unaudited half-yearly report for the six-month period ending June 30, 2018.

In the property sector, Trident Estates plc advanced 1.54% to close at €1.32. Trading volume totalled 12,679 shares as four trades were executed.

On Wednesday, it was announced that the board of directors of Malta Properties Company plc shall be meeting next Wednesday, August 1, 2018, to discuss the group’s interim unaudited financial statements for the six-month period up to June 2018. A couple of transactions of a combined 12,865 shares were registered this week, pushing the price up by 2.08% to €0.49.

On Tuesday, the board of directors of Plaza Centres plc approved the interim financial statements for the period ended June 30, 2018. The group saw an increase in revenue of 5.54% to reach €1.56 million. This upturn in revenue translated to a modest 1.21% growth in EBITDA, as a result of higher administrative costs and a higher contribution to marketing and maintenance costs, given the lower occupancy levels. The decline in occupancy levels is a result of the refurbishment of the offices at Tigne Place, and thus, these are expected to improve before the end of the year.

The group’s earnings were also impacted by a higher depreciation charge and lower income from investment. As a result, profit before tax decreased by 7.26% over the previous period to €740,823.

The announcement did not have an impact on the share price, as a single trade of 1,000 shares was recorded at a price of €1.04.

On Tuesday, it was announced that the board of directors of Malita Investments plc is scheduled to meet on August 10, 2018 to consider and approve the company’s interim financial statements for the first six months of 2018. The board will also consider the payment of an interim dividend.

During the week, the equity registered contrasting performances as 143,379 shares traded over nine deals. The share price ultimately closed unchanged at €0.87.

On Thursday, Tigne Mall plc announced that the board of directors shall be meeting on Friday, August 3, to consider and approve the condensed interim financial statements for the half-year ending June 2018, as well as to consider the declaration of an interim dividend. The equity also closed unchanged at €0.95, despite generating a turnover of €8,172 across five deals.