MSE Index stable as turnover falls
The MSE Index recorded a minimal increase for the month of August as it closed at 4,207.993 points, 0.01 per cent higher than the previous month. Activity was spread across 19 equities of which 12 gained in value while seven lost ground. Turnover for the month amounted to €6.2m, a decrease of 30 per cent from that recorded in July.
The largest gain was registered in the property sector as Plaza Centres plc shares rallied by 10.5 per cent thus recovering from last month's 2.1 per cent loss and closing at €1.05 as 59,892 shares changed hands over 11 deals.
In the same sector, Tigne Mall plc shares closed at €0.93 as 21 trades of 317,675 shares pushed its price up by 6.9 per cent. Earlier in the month, the company announced an increase in profit before tax for the first six months of 2015- from €0.95m in 2014 to €1.2m - and reported a revenue of €2.6m - up by 6.3 per cent from the comparable period of 2014. The Directors approved an interim net dividend payment of €0.01 per share, payable to shareholders on the Company's register as at August 10, 2015, which will be paid on September 10, 2015. This increase was mainly attributed to an increase in rental revenue and a decrease in finance costs resulting from accelerated bank loan repayments.
Meanwhile, MIDI plc shares rose by 1.5 per cent to close at €0.35 as 10 transactions of 236,000 shares were dealt. On August 31, 2015 the company reported a loss before tax of €0.64m for the first six months of 2015, which is expected to be reversed once a sale of apartments is processed. Profits after tax amounted to €3.22m, due to a net deferred tax credit of €3.86m while revenue for the period under review amounted to €6.63m - a more than an eight fold increase in turnover. The development and sale of property is the key contributor to the significant increase in revenue.
On the other hand, the share price of Santumas Shareholdings plc drifted 2.4 per cent lower to close at €2.00 on thin volume. During the month, Santumas Shareholdings plc announced that the Company registered a profit before tax of €515K for the year ended April 30, 2015 down by 28 per cent from the €714,569 reported in 2014. Earnings per share fell to €0.2523.
Island Hotels Group Holdings plc traded after five months of inactivity as it rose by 7.9 per cent to €1.101, on a single trade of a scant 2,000 shares. Meanwhile, International Hotel Investments plc lost further ground as it closing per cent lower at €0.79. In August the company reported that it registered a loss after tax of €894k during the first six months of this year compared to a loss after tax of €7.68m in the same period in 2014. Revenue for the period under review amounted to €55.38m, a decline of 0.37 per cent from the previous year. The increase in revenue generated from hotels in Malta, Prague, Budapest, Lisbon and London was offset by declines in Russia and Libya as a result of political and economic turmoil. Following a mandatory bid by IHI the Listing Authority has decided to suspend the listing and trading of IHGH shares.
It was a mixed month for the financial services sector as out of the five equities traded in this sector, three increased in value while two closed lower. Mapfre Middlesea plc continued to push ahead as they recorded their seventh consecutive monthly gain to close 4.9 per cent higher at €2.11 over 44 deals of 74,552 shares. Similarly, Lombard Bank plc built on last month's 12.5 per cent increase by a further 3.2 per cent in August as 135,282 shares were dealt over 33 trades. In the 2015 half yearly financial report the Lombard Group reported a profit before tax of €4.31m for the six months ended June 30, 2015 (2014: €3.27m) - due to an improved performance by MaltaPost in which the company has an indirect stake in through Redbox Ltd.
Bank of Valletta plc shares shed 2.2 per cent to close at €2.25 over the highest turnover for the month which amounted to €1.87m, 30 per cent of total turnover. Its peer, HSBC Bank Malta plc registered a 0.5 per cent gain to close at €1.80 over 104 deals of 303,444 shares. On the first trading session in August, the Group announced a profit before tax of €36m for the first six months of 2015- €4m lower than the same period last year. Net operating income was up 3 per cent year-on-year. The board has declared an interim gross dividend of €0.051 per share (€0.033 net of tax), payable to shareholders on the bank's register of shareholders as at August 14, 2015. The increase in dividend payment over last year reflects a higher pay-out ratio due to a lower charge in connection with the General Banking Risk Reserve.
The largest loss within the financial sector was recorded by FIMBank plc as its share price plunged by 9.1 per cent to close at $0.45 as eight deals of 28,590 shares were concluded. This was a reflection of the Group's reported loss after tax for the first six months of 2015, of $8.64m (2014:$1.45m) which were restated for discontinued operations. Net interest income for the period under review amounted to $16m - up by 16.7 per cent from 2014.
In the IT sector, RS2 Software plc continued to earn support as its share price advanced by 4.6 per cent to close at €2.29 over high activity of 440,776 shares across 122 deals. The Group reported that it had registered an increase in profit before tax to €6.6m for the first half of 2015. Revenue for the period amounted to €11.5 million, a rise of 49 per cent from 2014. Earnings per share increased to €0.053. Such positive results reflect the recognition of new license fees and an increase in service fees. On the other hand, 6PM Holdings plc (6PM) wiped out last month's 4.8 per cent gain having shed 7.9 per cent to close at £0.70 as 29,951 shares were traded over 13 deals. In their interim results, 6PM reported a profit before tax of £413,199 (2014: £385,263) for the period ending June 30, 2015. Revenue for the period under review amounted to £4.4m, a decline of 8.3 per cent from 2014.
The other fallers for the month were Malta International Airport plc (MIA) and GO plc. MIA partly retracted last month's 18.6 per cent gain as it ended the month 2.8 per cent lower at €3.84 as 60 trades of 145,504 shares were concluded. This downward movement in its share price was witnessed despite a 7.1 per cent increase in traffic in July and a rise of 6.9 per cent year-to-date. Meanwhile, GO, drifted 0.1 per cent lower to close at €3.495 as 91 transactions of 214,488 shares were dealt. During the first six months of 2015, GO reported a profit before tax of €13 million (2014: €8.5 million) - as a result of various successful initiatives aimed at growing retail revenues and reducing costs. Revenue for the period under review amounted to €60.7 million - a slight decline of €52,000 from the comparable period in 2014 due to a decline in wholesale activity in its telecommunications business. This was compensated by growth in its data centre business.
Meanwhile, Simonds Farsons Cisk plc (SFC), Medserv plc and MaltaPost plc all ended the month at record high closing prices. SFC rounded off eight months of consecutive gains as its share price climbed by a further 5.7 per cent in August to close at €5.55 over nine deals of 3,812 shares.
Similarly, on the back of positive interim results, Medserv plc shares gained 5.5 per cent over 19 transactions of 122,078 shares to close at €2.50. The Group reported that it had registered a profit before tax of €4.5m for the first six months of 2015, compared to €564k registered in 2014.
The share price of MaltaPost plc advanced by 2.3 per cent to close at €1.636 over nine deals of 43,699 shares. The increase in the share price followed the interim directors' statement in which it was reported that the company had registered an increase in turnover compared to the comparable period of 2014, with growth in international mail services, registered mail, and parcel and packets business being the main contributors.
The other gainer for the month was Malita Investments plc as 19 transactions of 110,672 shares pushed its price 1.1 per cent higher to close at €0.94.
GlobalCapital plc reported that the Group registered a profit after tax of €222k for the financial year ending December 31, 2014 - compared to loss after taxation of €3.7 registered in 2013. In the 2015 interim results, the Company reported a profit before tax of €1.176m compared to a loss of €0.967m registered in 2014.
In the corporate bond market, turnover amounted to €8.53m, spread over 40 issues, of which 16 moved upwards, 19 declined and five issues remained unchanged. Recording the best performance on the month was the newly issued 5.1% 6PM Holdings plc Unsecured € 2025, with a nine per cent gain registered over the highest turnover, worth €2.8m. Similarly, the newly issued 5.5% Mediterranean Investments Holding plc Unsecured € 2020 bond rallied by six per cent to €106 over 35 trades of 758,200 nominal. Meanwhile, the 4.8% Bank of Valletta Plc Sub € 2020 issue headed the list of fallers following a 3.9 per cent drop- closing at €104.25 over 15 deals of 127,600 nominal.
In the sovereign debt market, 29 issues were active, of which ten gained ground and 19 declined. The 3.2% MGS 2019 (V) was the most liquid issue with a turnover of €8.5m, closing the month at €110.78, registering a 1.4 per cent gain. Meanwhile, the 3% MGS 2040 (I) issue suffered the worst fall on the month of 1.9 per cent to close at €106.50, yielding 2.641%. The security was active over a turnover of €2.14m- 7.9 per cent of the total turnover in this market worth €27.06m.
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]