Local bonds experienced a negative month in January - in the sovereign debt market turnover reached €30.6m spread across 28 issues, practically all of which experienced a slump, particularly long-dated issues. Yields rose as these followed the same trend witnessed in international markets, however, Maltese long dated sovereign debt issues experienced an even sharper increase. The 3% MGS 2040 (I) r suffered the worst decline in value amounting to 6.5 per cent, to close at €111.53. The most liquid issue was the 5.25% MGS 2030 (I), having witnessed a turnover of over €4.6m and a decline in value of 4.4 per cent, to close at €140.51.
On the other hand, although performance of the corporate bonds was not as negative as that witnessed in the sovereign debt market, fallers still outweighed gainers. In fact, in the corporate bond market activity was spread across 47 issues of which 14 advanced, 27 declined and 6 closed unchanged. Total turnover exceeded the €8m mark. The 5.3% United Finance Plc Unsecured € Bonds 2023 headed the list of losers as the issue's price declined by 4.2 per cent to close at €104, while the 5% Hal Mann Vella Group plc Secured Bonds € 2024 was the best performer having gained 1.9 per cent, to close at €105.
Conversely, in the equity market, the MSE Index kicked off the year with a strong performance having gained a further 1.83 per cent closing at 4,715.747 points. A total of 20 equities were traded of which 11 ended the month in positive territory, eight closed in the red and one remained unchanged. There were 987 deals executed which resulted in a market turnover of €6.5m during the month.
The banking sector was one of the main factors that helped the index notch a step higher. After last month's bonus issue, Bank of Valletta plc extended last month's gains by 3.35 per cent closing the month at €2.16. This was spread over 433 deals making it the most tradable equity amounting to a turnover of €2.37m.
In the same sector, HSBC Bank Malta plc followed suit with the strongest run last month having registered a gain of 5.26 per cent. Trading in this equity was spread over 130 trades which amounted to just over €917,000. After close of trading on January 6, 2017 the bank announced that the Board of Directors is scheduled to meet on January 21, 2017 to approve the bank's final audited accounts for the year ended December 31, 2016 and to consider the declaration of a final dividend for approval at the Annual General Meeting to be held on April 13, 2017.
On the other side of the coin, FIMBank plc eroded last month's gain as its share price roiled by 1.11 per cent based on eleven trades on a volume of 70,706 shares with a total turnover of €58,100, closing at $0.90. On January 19, 2017, the company announced that the board of directors is scheduled to meet on March 14, 2017 to consider and approve the Group's and the Bank's Audited Accounts for the financial year ended December 31, 2016; and consider the declaration of a dividend, if any, to be recommended to the Annual General Meeting of shareholders.
Lombard Bank Malta plc had a weaker month as the number of deals drastically decreased resulting in a reduction in the total turnover to €11,475. Its share price also decreased by 1.09 per cent closing the month at €2.275.
In mid-January, RS2 Software plc announced that it has concluded three major agreements for its managed services arm, RS2 Smart Processing Ltd. In Europe, one contract has been signed with a global leader and one of the largest acquirers in payment processing and technology A second contract has been signed with a Latin American company, while a third contract has been signed with a Canadian company - the names of which may be communicated at a future time. The benefits of these agreements will materialize in the later part of 2017. The equity started off the year with a loss of 1.65 per cent which was based on a decrease in activity tallying a total of 75 transactions of a market value of €536,647.
The share price of Simonds Farsons Cisk plc continued to rally by 4.29 per cent closing at €7.30. Volume traded in this equity had a slight surge from 15,883 shares last month to 26,497 shares in January - the number of deals executed also increased to 27 trades. On January 25, 2017, the company announced that the development application filed in May 2015 regarding the rehabilitation of the Farsons Old Brewhouse in Mriehel was approved by the Planning Authority on January 13, 2017. The rehabilitation project covers the restoration and conversion of approximately 7,000 square meters of industrial space which will include a Visitor Centre Experience with supporting food and other retail outlets, flexible workspace and additional amenities. The project is envisaged to commence in mid-2017 and is expected to be completed within two years with an investment of around €10 million.
After reaching an all-time high last month, Tigne' Mall plc shares dropped by 5.88 per cent closing the month at €1.12. Volume traded in this equity was slightly short of 30,000 shares reaching a turnover of €34,291.
Elsewhere, MaltaPost plc shares closed at €2.05 resulting in a 0.99 per cent increase from last month. This performance was managed across 21 deals worth €441,227.
Plaza Centres plc shares continued their upward trend to close the month with a 0.92 per cent gain, closing at €1.10. Plaza shares had a relatively low number of deals, reaching a total turnover of just over €62,000.
Malta Properties Company plc shares stumbled by ten per cent as 52 deals with a volume of 311,426 shares were executed, ending the month at €0.531.
GO plc equities scored higher last month closing at €3.40 and thus registering a 3.98 per cent growth. The market turnover in this equity decreased to just under €325,000 - a difference of €49,874.
On the same note, International Hotel Investments plc closed the month of January with a 2.33 per cent gain as its share price closed at €0.66. Last month's turnover decreased by half spread over 28 transactions. On the last day of the month, the Company announced that it had appointed Numis Securities to help the company explore financing options.
Meanwhile, MIDI plc closed in negative territory as its share price declined by 5.98 per cent as the number of trades executed increased which in turn doubled the market turnover registered last month to €194,508. This resulted in the price closing at €0.33. Mapfre Middlesea plc shares also plunged by 1.29 per cent as its share price decreased to €2.22. Despite this loss, the equity still managed to have a spike in its market turnover of €55,572 over the previous month.
Malta International Airport plc managed to close the month of January with a marginal gain of 0.49 per cent at €4.07. This was spread over 60 trades worth just over €488,000. On January 11, 2017 the company announced that the airport reached an important 5 million passenger milestone in December exceeding expectations, closing the year with 5,080,071 passengers. The company forecasts a 2-3 per cent increase in passenger movements in 2017 targeting to reach a total revenue over €73 million, while net profit is projected to reach over €20 million. Meanwhile, in another announcement the following day, the company announced that the board of directors is scheduled to meet on February 22, 2017 to consider and approve the company's Financial Statements for the financial year ended December 31, 2016. The Board of Directors shall also consider whether to declare and make a recommendation to the shareholders for the payment of a dividend.
Medserv plc was also amongst last month's gainers. The equity registered a month on month increase of 3.13 per cent accumulating a total monthly turnover of €379,351 spread over 27 trades.
On the other hand, Malita Investments plc closed off the month of January with a loss of 0.93 per cent. The number of deals executed decreased to 12 which in turn also decreased the turnover to €72,560.
Santumas Shareholdings plc registered the highest advancement in terms of its equity price as it rallied by 11.11 per cent in January on one trade of 5,000 shares executed at €1.40.
The share price of Grand Harbour Marina plc closed off January in positive territory having gained 3.45 per cent, closing at €0.899 as 20,000 shares changed hands
No movement was noted in the share price of Loqus Holdings plc as a single deal of 1,000 shares was struck at €0.165.
On Wednesday January 24, 2017, 6PM Holdings plc announced that in relation to the conditional voluntary offer by Idox plc, a total of 98.15 per cent of valid acceptances were received by the end of the acceptance period. Idox plc considers all the conditions set out in the Offer Document as being satisfied in full and thus the voluntary public takeover offer is now unconditional in all respects. Idox plc has also confirmed that it intends to exercise the right to require all the remaining shareholders to sell and transfer to Idox plc the remaining shares in the Company. Following completion of the Offer and on acquiring all the issued shares in the Company, Idox plc intends to apply for the de-listing of the company shares as soon as practicable.
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]