Local equity index up 2.5% in September

MSE Trading Report for week ending September 28, 2018

The MSE Equity Total Return Index added 0.506% to last week's 0.375% gain, closing at 8,726.996 points – registering a 2.508% rally in September, thus resulting in a year-to-date gain of 0.67%.  Gains in large capitalised companies FIMBank plc, Malta International Airport plc (MIA), International Hotel Investments plc (IHI) and GO plc were the main contributors towards the increase registered in the index last week. Turnover totalled €2.7 million, and was spread across 21 equities, of which six fell and eight gained ground.

MIA shares registered an increase for the fourth consecutive week – ending last week 1.7% higher, at a new high of €6.05 – up by 9% in September. The local airport operator's shares were active over 23 trades as 32,167 shares changed hands.

GO plc shares extended their recent winning streak, having registered an increase for the fourth consecutive week. The telecommunications services provider's shares appreciated by 1.1% as 56,795 shares changed hands, closing €0.04 higher, at a twelve-year high of €3.64 – recording a 7.1% increase this month.

FIMBankplc shares extended last week's 4.3% increase, having appreciated by 4.1% across eight deals of 88,213 shares, closing at $0.63 – a seven-month high. The trade finance bank's shares rallied by 12.5% in September.

Bank of Valletta plc shares oscillated between a weekly high of €1.48 and a low of €1.44, to ultimately close at €1.45. The banking equity was negotiated across 80 transactions of 305,869 shares. Meanwhile, HSBC Bank Malta plc shares closed unchanged at €1.75, despite having traded at a weekly low of €1.72. HSBC shares were negotiated over 23 trades of 326,813 shares.

Lombard Bank Malta plc shares traded flat at €2.42 on two deals of 14,879 shares.

IHI shares appreciated by 2.4%, as 8,660 shares changed hands over four trades, closing at a seven-week high of €0.645.

The food and beverage supplier Simonds Farsons Cisk plc (SFC), registered a 4.8% increase in its share price, as 32,499 shares changed ownership over 10 trades, closing €0.35 higher at €7.70, an eight-month high. Shareholders of the company as at September 25, 2018 are entitled to receive an interim dividend, out of tax exempt profits, of €0.0333 per share on October 10.

SFC's spin-off Trident Estates plc published its unaudited financial statements for the six months ended July 31, showing a profit before tax of €107,000, down from the €167,000 registered last year. The group registered a turnover of €531,000, translating to an increase of 32% over the same period in 2017. This was mainly the result of the acquisition of the remaining 50% of the share capital of Sliema Fort Company Limited. As a result, gross profit was up by 19%, amounting to €433,000.

The decrease in profit before tax was driven by a 75% increase in administrative costs, reaching €326,000. The additional expenses were related to the Trident Park Project, as well as the company’s listing on the MSE. Such relatively high expenses are somewhat expected, until the Trident Park Project starts generating its own rental income stream. The project is on schedule and is planned to be available to receive tenants at the start of 2021.

The Board are not declaring an interim dividend, and shall determine the extent of any final dividend distribution on the basis of the full-year results.

Trident shares closed unchanged for the second consecutive week, despite having reached a weekly high of €1.38. The property management equity was executed over six transactions of 40,205 shares.

Malta Properties Company plc shares advanced by 2.9% across six deals of 31,200 shares, closing at €0.525 – up by 7.6% this month.

In the same sector, MIDI plc shares closed unchanged at €0.565 on four trades of 11,000 shares. Meanwhile, Malita Investments plc shares remained unchanged at €0.87 for the third consecutive week. The equity was negotiated across three trades of 14,060 shares.

Tigne Mall plc shares fell by 3%, as six deals of 40,333 shares were concluded, closing €0.03 lower at €0.96.

Plaza Centres plc shares slipped by €0.04 or 3.9% across 10 transactions of 92,500 shares, to close the quarter at €1.

On a positive note, Main Street Complex plc shares increased by 1.6% over four trades of 10,200 shares, closing at €0.655.

Santumas Shareholdings plc shares witnessed four transactions of 16,000 shares. The equity advanced by 6.8%, to close €0.09 higher at €1.41. The company's Annual General Meeting is scheduled for October 23, 2018.

Mapfre Middlesea plc shares fell by 0.5%, as 208,036 shares were executed over seven trades. The investments and insurance services provider's shares closed at €1.83.

In the same sector, GlobalCapital plc shares traded unchanged at €0.256 on two deals of 5,633 shares.

MaltaPost plc shares erased last week's 2.4% gain, having slipped by 2.4%. The postal services operator's shares were negotiated across six transactions of 56,450 shares, and closed €0.04 lower at €1.65.

RS2 Software plc shares declined by 1.7% over six trades of 36,523 shares, closing at €1.18.

The retail and supermarkets owner PG plc registered no change in its €1.40 share price, as 167,182 shares changed ownership across 19 deals.

In the corporate bond market, 36 issues were active, of which 15 advanced and nine fell. Turnover amounted to €1.3 million. The 4.4% Central Business Centres 2027 Euro Unsecured registered the best performance, having increased by 2.1%, to close at €104.25. Meanwhile, the 4% MIDI plc Secured € 2026 headed the list of fallers, having declined by 0.6%, closing at €104. The 5.1% 6PM Holdings plc Unsecured € 2025 was the most liquid issue, as 16 deals worth €192,646 were negotiated, closing 0.3% higher at €101.25.

In the sovereign debt market, turnover totalled €4.3 million and was spread across 20 issues, of which, five increased and 15 declined. The 2.3% MGS 2029 (II) was the most heavily-traded issue, having witnessed a turnover of €1.3 million, to close 0.3% lower at €106.38.

The 2.5% MGS 2036 (I) registered the best performance, having increased by 0.4% over 16 deals worth €707,041, to close at 106.93. Meanwhile, the 2.2% MGS 2035 (I) was the worst performer, having declined by 0.9% on two deals worth €24,672, closing at €102.81.