The Malta Stock Exchange (MSE) Index ended the month of February in positive territory as it increased by a further 1.4%, to close at 3,284.93 points. A total of 20 equities were active during the month, with 13 appreciating, five falling and two closing unchanged. The sentiment throughout the international market was dispersed as both the CAC 40 in Paris and the DAX in Frankfurt declined marginally by 0.3% and 0.4% respectively while the NIKKEI 225 in Japan surged by 3.8%, and the Dow Jones in New York and the FTSE 100 in London advanced by 1.8%.
Over the month of February, turnover in the local equity market increased to over €4.7m traded over a total of 740 deals. The most active equity was MIDI plc which witnessed 36 trades of over 1.4m shares. Meanwhile, the best performer for the month was 6PM Holdings plc (6PM), while Island Hotels Group plc headed the list of losers.
From the banking sector, winners and losers tallied at two as Bank of Valletta plc (BOV) and HSBC Bank Malta plc (HSBC) edged marginally higher while Lombard Bank Malta plc and FIMBank plc both declined. BOV was the most active equity for the month as it was traded over 221 deals of 475,388 shares. Through its interim directors’ statement the bank announced that it was affirmed a BBB+ rating by Fitch rating agency. BOV’s trading price oscillated between a monthly low of €2.23 and a monthly high of €2.29 while the final deal of the month was executed at €2.275 resulting in a 0.4% increase.
Similarly, HSBC extended January’s gains as it rose by a further 0.7% over 79 transactions of 245,344 shares, to close €0.02 higher at €2.74. Conversely, FIMBank plc lurched two% downwards as 22 trades of 187,488 shares took place, to close at $1.00. The board of directors of the trade finance bank is scheduled to meet on 6 March, 2013 to consider and approve the group’s and the bank’s audited accounts for the financial year ended 31 December, 2012 and to consider the declaration of a dividend. Likewise, Lombard Bank Malta plc slipped by 1%, closing at €1.881, despite having reached a monthly high of €1.91.
On a positive note, 6PM Holdings plc made a strong bounce back during the month of February as it spiked by nearly 39% or £0.12 as 174,070 shares were traded. The equity closed the month at £0.43. The gain might have been conditioned by the announcement issued in mid-February noting that the company has successfully licensed its CareSolutions™ Climate-HIV management solution to three trusts that form part of the National Health Service in the UK.
From the same sector, Crimsonwing plc failed to stay faithful to its recent winning streak, despite having announced that like-for-like sales in January 2013 were up 19% when compared to January 2012. The equity dropped by 1.8% as 25 trades of 311,952 shares were executed, to end the month at the €0.54 price level. On the other hand, RS2 Software plc extended its recent upturn as it climbed by a further 4.7% as 25 transactions of 134,044 shares were struck, to close the month €0.04 higher at €0.90.
Meanwhile, Medserv plc edged minimally higher, closing at €3.95, as the company announced that its annual general meeting will be held on 25 April.
From the telecommunications industry, GO plc proved to be imperishable as it has been recording gradual gains for six consecutive months. The equity managed to close at its monthly high of €1.405 as 81 transactions of 159,879 shares took place. Similarly, the increase in MaltaPost plc shares remained intact for yet another month, with the share price rising by a further 2.9%, closing at €1.05.
February also proved to be fruitful for Grand Harbour Marina plc shareholders as its price increased by €0.16 and closing the month higher at €1.98. The company announced that the directors have approved a net interim dividend of €0.12 per share equivalent to €1.2m for payment on all shares settled as at close of business on March 8, 2013 and payable by not later than 15 March, 2013.
Likewise, Simonds Farsons Cisk plc and MIDI plc (MIDI) both added on to their previous gains as they increased by 0.8% and 3.6% respectively. Heavy trading in MIDI shares took place after the company announced that it will be pursuing the sale of all shareholding held directly by MIDI in Tigne Mall Limited (TML). This will be done through an initial public offering of the shares of TML, which is subject to regulatory approval. The company also announced earlier on in the month that works on a new 13 storey block situated on the foreshore at Tigne Point have commenced.
On a similar note, International Hotel Investments plc, Malta International Airport plc (MIA) and Malita Investments plc (Malita) all ended the month in positive territory as they increased by 4%, 0.6% and 1% respectively. MIA announced that passenger movements for January 2013 reached 179,243; which is an 8% increase when compared to the same month last year. Meanwhile, Malita announced that the board of directors has resolved to recommend for the approval of the annual general meeting, the payment of a final net dividend of €0.0158 per share. The final net dividend will be paid on 12 April, 2013 to the shareholders on the company’s share register at close of business on 11 March, 2013.
Conversely, Island Hotels Group plc plunged by 5.1% over a low turnover of 1,570 shares, to close at €0.649. The board of directors of the company approved the audited financial statements for the financial year ended 31 October, 2012 in which the group registered a loss after tax of €989,273, compared to a loss of €242,362 registered in 2011. Revenue for the period under review amounted to €32.9m, a rise of 8.9% form 2011.
Plaza Centres plc also slipped by 1.7% over nine trades of 275,560 shares, closing lower at €0.59. The board of directors is scheduled to meet on 13 March, 2013 to approve the company’s final audited accounts for the financial year ended 31 December, 2012 and to consider the declaration of a final dividend to be recommended at the company’s AGM.
The non-movers for the month were Middlesea Insurance plc (Middlesea) and Santumas plc as they closed unchanged at €0.79 and €1.79 respectively. The former witnessed six deals of 4,592 shares, while the latter was executed over a single transaction of 35,937 shares. The board of directors of Middlesea has recommended, for the approval of the AGM to be held on 19 April, 2013, the payment of a final net dividend of €0.025 per share. The final dividend will be paid on May 17, 2013 to the shareholders on the company’s register at the close of business as at 22 April, 2013. The company announced that in the year ended 31 December, 2012 the group recorded a profit before tax for the year of €17.98m, up from €3.11m a year earlier.
In the fixed-income market, total turnover in February amounted to over €61.8m. The Malta Government Bonds were the most liquid as 957 trades worth over €59m were transacted. The 3.6% MGS 2013 (IV) was the most negotiated issue for the month as total trading volume exceeded €15.8m. Meanwhile, in the corporate bonds market 267 deals worth €2.8m were executed.
This article, which was compiled by Jesmond Mizzi, managing director of Jesmond Mizzi Financial Advisors Limited, does not intend to give investment advice and the contents therein should not be construed as such. The company is licensed to conduct investment services by the MFSA and is a member firm of the Malta Stock Exchange and a member of the Atlas Group. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Jesmond Mizzi Financial Advisors at 67 Level 3, South Street, Valletta, or on Tel: 21224410, or email [email protected]