Index higher on lower turnover

MSE Trading Report for week ending September 4, 2015

The MSE Index ended the week 0.45 per cent higher to close at 4,231.072 points as 14 equities were traded of which eight closed higher, four lost ground while two closed unchanged. Total turnover amounted to €1.56m – down 13 per cent compared to last week.

Heading the list of gainers was Medserv plc as itsshare pricespiked by 18 per cent over the week to close at €2.95 – a new all time high. This increase reflected the positive interim results that were published by the Group last week. Turnover in this equity amounted to €174k as 18 deals of 59,500 shares were concluded.

In the financial services sector, Lombard Bank Malta plc sharesclosed at €2.15 having gained 1.7 per cent over nine trades of 29,302 shares.

 In the same sector HSBC Bank Malta plc (HSBC) also gained ground as its share price put on 0.6 per cent to close at €1.81 over relatively low turnover of €40k – seven deals of 21,874 shares were executed. During the week, HSBC announced that Mr. Mark Watkinson will be relinquishing his post as Chief Executive Officer with effect from November 2, 2015. Mr. Watkinson will be replaced by Mr. Andrew Beane, who will take up his new position with effect from the same date, subject to regulatory approval.

Meanwhile, Bank of Valletta plc shares closed unchanged at €2.25 over the highest turnover of the week worth €322k as 143,046 shares were traded over 57 transactions.  

Following last week’s 4.4 per cent decline, Mapfre Middlesea plc shares lost a further 1.4 per cent over 12 deals of 7,403 shares to close at €2.12.

The other fallers for the week were International Hotel Investments plc (IHI), Malta International Airport plc (MIA) and Malita Investments plc (Malita) shares. IHI shed 0.6 per cent as 18 transactions of 351,778 pushed the share price down to €0.78. Meanwhile, MIA declined by 1.3 per cent to close at €3.84 as 47,718 shares changed hands over 12 deals. The equity traded at a high of €3.90 to than surrender the gains on yesterday on a mere 1,400 shares.  The share price of Malita drifted 0.2 per cent lower to €0.938 as three trades of 19,950 shares were executed.

After close of trading yesterday, MIA published the traffic results for August in which it was announced that traffic reached an all–time high for the month with 585,218 passenger movements. A 6.1% increase was registered in August over the comparable period in 2014.

 In the IT sector, 6pm Holdings plc share pricerecovered from last week’s 3.4 per cent loss as it gained 3.5 per cent over 10 trades of 61,234 shares – to return to the €0.735 price level. The other IT company, RS2 Software plc closed the week at an all-time high of €2.37 as its share price gained three per cent after opening the week in the red. This equity was highly active during the week as turnover reached €256k on 27 transactions of 109,926 shares.

Gains were also registered in the property sector as MIDI plc shares climbed 0.9 per cent to close at €0.353 over low volume – four deals of 27,200 shares were concluded. During the week the company announcedthat its Board of Directors had approved the half-yearly financial report covering the six months ended June 30, 2015.The company reported a loss before tax of €0.64m for the period under review, which is expected to be reversed once the sale of Q1 apartments (the new block) is processed. Meanwhile, profits after tax amounted to €3.2m, due to a net deferred tax credit of €3.9m. 

 In the same sector, four transactions of 28,762 shares pushed the share price of Plaza Centres plc up by four per cent to close at €1.05.

The other gainer for the week was GO plc as its shares put on 0.4 per cent to close at €3.495 – recovering a part of last week’s 2.5 per cent loss. The telecommunications company was active over 14 trades of 28,959 shares.

Closing the week unchanged were Simonds Farsons Cisk plc shares as they traded flat over the week at €5.55 over thin volume as four deals of 1,150 shares were concluded.

During the week, three listed companies, namely, Simonds Farsons Cisk plc, Malta International Airport plc and Bank of Valletta plc announced the execution of a share purchase agreement for the sale of their shares in Valletta Cruise Port plc (VCP). SFC through its holding in FSG Company Limited (in which it owns 50%), together with MIA and BOV have sold 30.97 per cent shareholding in VCP to Global Liman İşletmeleri A.Ş. (GLI), a 100% subsidiary of Global Yatırım Holding A.Ş. The successful completion of the transaction is subject to legal and regulatory approvals and the waiver of the pre-emption rights by the remaining shareholders of VCP.

Elsewhere, Grand Harbour Marina plc published the Half Yearly Report for the period ending June 30, 2015. The Group reported a profit before tax of €0.08m, compared to €0.02m registered in the same period in 2014. The company reported an income tax charge for the period ended June 30, 2015 of €118k – thus resulting in a loss after income tax of €0.037.

In the corporate bond market 28 issues were active of which 13 increased in value 12 lost ground while three closed unchanged. Total turnover dropped by 45 per cent to €957k. The 6% Mediterranean Investments Holding plcrecorded the highest increase closing 1.4 per cent higher at €100.90 as five trades of 37,000 nominal were concluded. On the other hand, the 5.8% International Hotel Investments plc 2023 lost four per cent as two deals of 3,000 nominal dragged the price down to €108. The most liquid issue was the 5.1% 6PM Holdings plc Unsecured € 2025 as nine trades of 372,700 nominal generated a turnover of €406k- representing 42 per cent of total turnover.

The sovereign debt front registered a late upward surge, in line with European sovereign bonds, after spending most of the week in the red. This was a result of the lowered inflation expectations which were announced by Mario Draghi, president of the ECB, on Thursday. During the week 23 stocks were traded of which eight gained ground while 15 closed lower. The 5.25% MGS 2030 (I) headed the list of gainers as it closed 0.6 per cent higher over 10 transactions of 89,300 nominal to close at €137.76. Conversely, the 5.1% MGS 2029 (I) lost 2.1 per cent to close at €134.52 over a single trade of 5,000 nominal.