Seven equities trade higher
MSE Trading Report for week ending December 12, 2014
The recent losing streak in the MSE Index persisted as the index fell for the forth successive week by 0.19 per cent, to close at 3,238.81 points. This negative trend was extended despite seven equities out of a total of 14 gained ground. Declines in large capitalised equities such as Bank of Valletta plc (BOV), HSBC Bank Malta plc (HSBC), Malta International Airport plc (MIA) and GO plc (GO) contributed to this decline, while three other equities closed the week unchanged.
HSBC shares were the most active for the week as 43 deals of 174,984 shares were executed. The banking equity oscillated between a weekly high of €1.95 and a low of €1.90, at which it closed, registering a 0.78 per cent loss. The Board of Directors of the bank is scheduled to meet on February 23, 2015 to approve the group’s and the bank’s final audited accounts for the financial year ended December 31, 2014 and to consider the declaration of a final dividend to be recommended to the Annual General Meeting (AGM).
Similarly, BOV shares slid 0.9 per cent or €0.02 as 56 trades of 141,248 shares were struck, to close at €2.18. Conversely, Lombard Bank Malta plc shares edged 0.3 per cent higher as two trades of 9,000 shares were negotiated, closing at €1.755.
The best performer for the four-day trading week wasCrimsonwing plc as its share pricerallied by 7.8 per cent on Wednesday ona sole transaction of a mere 600 shares, closing €0.06 higher at €0.83. Inthe same sector, RS2 Software plc shares traded flat at €2.929 ona single deal of 3,400 shares. Year to date, the former equityregistered a 2.4 per cent loss, while the latterhas so farrecorded a 36 per cent gain.
MaltaPost plc shares advanced by €0.03 or 2.5 per cent as three trades of 41,981 shares were executed, yet again closing at anall-time high of €1.25. On Tuesday,the Board of Directors announced that it approved the company’s financial statements for the year ended September 30, 2014. These will be submitted for approval of the shareholders at the forthcoming AGM scheduled to be held onJanuary 16, 2015. The company registered a profit before tax of €2.74million, compared to €1.99million registered in 2013. Revenue for the period amounted to €23.7 million, an increase of 9.6 per cent from 2013. Volume increases in the parcel sector contributed positively to the increase in revenues. Whereas the decrease in traditional letter mail volumes continued in line with international industry trends, the revision of certain tariffs as from January 2014 helped mitigate the cost of providing a service in this declining sector. Meanwhile, earnings per share increased to €0.05.
The Board resolved to recommend for the approval of the AGM, the payment of a final ordinary net dividend of €0.04 per nominal €0.25 sharegiving shareholders the option of receiving the dividend either in cash or by the issue of new shares. The attribution price, at which the number of new shares to be issued will be determined is €1.16 per nominal €0.25 share. The final dividend, if approved at the AGM, will be paid on January 30, 2015 to shareholders on the company’s share register as at close of business next Wednesday.
International Hotel Investments plc erasedlast week’s negative performance as its share price gained 1.9 per cent onone trade of 1,789 shares, to close at €0.53. On Thursday, the company announced that its main aim has been to breakeven in the Tripoli hotel operation. The adjoining commercial centre, which generates €6 million in rentalincome on an annual basis, continues to be occupied by oil-sector blue chip tenants. In St. Petersburg, the challenge is to target as much business as possible from within Russia itself. Revenues within Russia this year have amounted to 35 per cent, compared to 25 per cent last year. The key concern remains the Ruble exchange rate, due to a greater than 40 per cent devaluation in the past six months.
The company budgets for 2015 have been set assuming zero growth in Libya and marginal growth, mainly through the a Ruble correction, in St Petersburg. The hotels in Malta, London, Lisbon, Prague and Budapest are all budgeted to register further improvements in 2015, with an expectation to regain the record €42 million profit levels of 2013 by 2016.
Simonds Farsons Cisk plc shares climbed by 0.7 per cent as two deals of 5,200 shares were struck. The food and beverage equity traded at a new high of €3.05 on Thursday, to however close at €3.04. Similarly, Medserv plc shares strengthened by 1.4 per cent as 14,000 shares changed hands, closing at their 15-month high of €1.41.
On a negative note, MIA shares declined by €0.03 as 24,022 shares were dealt across 11 trades, closing 1.3 per cent lower at €2.30after trading between a weekly high of €2.327 and a low of €2.22. Likewise, the telecommunications provider GO plc shed a further 0.6 per cent, to close at €2.50 as 10 deals of 26,281 shares were negotiated.
Plaza Centres plc shares edged 1.6 per cent higher as three deals of 38,218 shares were executed, to close at €0.64. Meanwhile, Tigne Mall plc shares closed unchanged at their record high of €0.585. The other non-mover for the week wasIsland Hotels Group Holdings plc as they traded unchanged at €0.85 on a sole trade of 1,043 shares.
In the corporate bond market turnover amounted to just under €1.3 million spread across 28 issues of which 15 gained ground, four fell and nine closed unchanged. The 7.5% Mediterranean Investments Holding plc € 2015 was the worst performer as it droppedby 2.1 per cent, to close at €92, while the newly issued 5.1% PTL Holdings plc unsecured € 2024 headed the list of gainers registering athree per cent gain in its first trading daysto closeat €103.00.
Finally, in the soveriegn debt market 26 issues were activewith turnover reaching €8.7m- yet again, long term issues truimphed, while short-term issues fell marginally. The 4.3% MGS 2016 (IV) was the most liquid issue as it witnessed a turnover of €1.064m. Meanwhile, the 5.1% MGS 2022 (I) was the top-perfromer as it appreciated by 0.7 per cent, to close at €125.52.