Trading in the sovereign debt market reached €31m in February spread across 30 issues over 1,462 trades. All long dated issues registered significant gains ranging from 1.2 to 2.4 per cent. Yields declined and prices rose in line with global treasuries, however, Maltese long dated sovereign debt issues experienced an even sharper increase in prices, thus recovering from January's slump. The newly listed 2.2% MGS 2035 (I) r registered the highest gain of 2.4 per cent, to close at €102.66. The most liquid issue was the 2.5% MGS 2036 (I) having witnessed a turnover of over €5.7m and a gain of two per cent, to close at €105.26.
The MSE index continued to strengthen its position, having ended the month of February with a 0.45 per cent gain to close at 4,736.80 basis points. A total of 20 equities were traded of which just over half closed the month in positive territory, eight closed in the red and one remained unchanged. A total of 882 deals worth €6.78m were executed in the equity market during the month.
The banking sector was one of the main factors to help the index notch a step higher. In fact, Bank of Valletta plc extended the previous month's gain by 1.39 per cent, closing the month at €2.19. This equity recorded the highest number of deals executed reaching the highest turnover for the month of just over €1.9m - 28.6 per cent of total turnover.
In the same sector, HSBC Bank Malta plc followed suit having registered a 3 per cent gain. Trading in this equity was spread over 139 trades which amounted to over €1.1 million - 16.6 per cent of total turnover. Its share price registered a fresh three year high closing the month at €2.06. Towards the end of last month, HSBC Bank Malta plc announced its financial results for the year ended December 31, 2016 reporting a profit attributable to shareholders of €40.2m, resulting in earnings per share of 11.2 cent compared with 8.5 cent in 2015. The board recommended the payment of a final gross dividend of 4.1 cent per share (2.7 cent per share net of tax). Together with the interim dividend paid in September 2016, the total gross dividend for the year will be 11.2 cent per share (7.3 cent per share net of tax), which represents a 45% increase compared to the 2015 dividend. The final dividend will be paid on April 20, 2017 to shareholders on the bank's register of shareholders at March 14, 2017.
Meanwhile, FIMBank plc shares registered a 1.12 per cent gain having closed the month at $0.90 with a total turnover of €280k spread across 23 deals. Lombard Bank Malta plc had a strong month as its share price surged by 3.3 per cent closing at a one year high of €2.35. Trading in this equity amounted to €180k over as 78,750 shares changed hands.
RS2 Software plc extended last month's decline by a further 7.82 per cent drop to close at €1.65 - a two month low. The equity was active over 57 deals worth €422k.
The share price of Simonds Farsons Cisk plc halted its recent rally after shaving €0.10 off the previous month's closing price, to close at €7.20. This was spread across 13 deals with a total value of €100k.
Tigne' Mall plc shares partially recovered the previous month's drop, having gained 0.89 per cent to close the month at €1.13. Volume traded in this equity was 8,500 shares reaching a turnover of €9,600. Elsewhere, MaltaPost plc shares closed at €2 resulting in a 2.44 per cent decrease across four deals worth €15,354.10.
Plaza Centres plc shares halted its upward trend to close the month with a 0.91 per cent loss, closing at €1.09. Plaza shares had a relatively low number of deals, reaching a total turnover of just over €104k. At the begining of the month, the company announced that the Board of Directors is scheduled to meet on March 9, 2017 to consider and approve the Company's Audited Financial Statements for the financial year ended December 31, 2016. The company will also consider whether to declare and recommend the payment of a dividend to shareholders at the Company's Annual General Meeting.
Malta Properties Company plc shares stumbled by a further 2.07 per cent as 61 deals with a volume of 428,925 shares were executed, ending the month at €0.52. The company announced that SLM Property Company Limited and Toncam Properties Limited entered into a promise of sale agreement for the sale and transfer of the complex known as Sliema Old Exchange. Upon the final deed of sale, the Property will no longer form part of the property portfolio of MPC and consequently there will no longer be any rental income received in terms of the Property. The proceeds from the disposal of the Property are expected to go towards funding MPC's development projects and/or any acquisition opportunities.
GO plc announced that the board of directors approved its preliminary statement of annual results for the financial year ended December 31, 2016. The Group's revenue increased by €33.3m to €157m. Profit before tax amounted to €28.1m compared to €34.2m in 2015 resulting in an earnings per share (EPS) of €0.182 compared to €0.261 in 2015. Cost of sales, administrative and related costs amounted to €131.9 million compared to €97.5 million in 2015. The main increase of €29.7 million is the result of the consolidation of the results of Cablenet and amortisation charges that result from the intangible assets created as a result of the acquisition of both Cablenet and Kinetix. The acquisitions concluded during the year had a positive effect on Group Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) which grew by 19.4% to €61.6 million, an increase of €10 million over the comparative year.
Furthermore, the board resolved to recommend that the Annual General Meeting approves the payment of a final net dividend of €0.11 per share which will be paid on May 5, 2017 to all shareholders on the company's register as at April 3, 2017.
Turnover in this equity reached €700k, spread over 80 deals having soared by five per cent to €3.57.
On the other hand, International Hotel Investments plc closed the month of February with a 4.55 per cent drop as its share price closed at a six month low of €0.63. Activity was spread over 24 deals with a turnover of €160k.
Meanwhile, MIDI plc closed unchanged at €0.33 as activity was spread over 21 trades that totalled a turnover of €233k.
Mapfre Middlesea plc shares increased by 0.45 per cent or €0.01 to close at €2.23 - 12 deals with a total volume of 30,226 shares were executed. The company announced that the Board of Directors is scheduled to meet on March 8, 2017 to consider and approve the company's audited financial statements for the financial year ended December 31, 2016. The company will also consider the declaration of a dividend, if any, to be recommended to the Annual General Meeting of Shareholders.
At the beginning of the month, Malta International Airport plc announced its traffic figures for the month of January. The company exceeded the 300,000 passenger mark for the first time hosting precisely 301,289 passengers in January. The airport's traffic for the month increased by 27.3% or an increase of 64,699 passengers over the same month last year. This growth was registered on the back of an upturn in both aircraft movements and seat capacity, which grew by 22.1% and 27.7%, respectively. Enhanced connectivity to markets such as Germany, Spain and Italy contributed to this growth.
The company also announced its financial statements for the year ended December 31, 2016 wherein it was reported that profits for the year increased from €19.3m to €21m. Increases in revenues were registered by both the company's aviation and non-aviation segments. The global sum of Group revenues for the year was €73m up from €66.9m in 2015. Aviation revenues, which grew by 10.9% to €51.5m, are largely attributable to a new traffic milestone achieved with over 5 million guests welcomed at the airport last year. The Board of Directors is recommending the payment of a final net dividend of €0.07 per share (gross €0.107692) on all shares settled as at close of business on April 10, 2017, payable by not later than May 26, 2017. These results managed to help the equity close the month of February with a gain of 1.99 per cent at €4.151 - reaching its highest level since October 2016 at €4.25 intra-month. Activity was spread over 72 trades worth just over €631k.
Medserv plc reached a 10 week high last month as it closed at €1.66. The equity registered a month on month increase of 0.67 per cent accumulating a total monthly turnover of €282,351 spread over 26 trades. The Company is announced that its Middle East subsidiary, Middle East Tubular Services LLC ("METS") has been awarded a new long term contract with the Sumitomo Corporation entity, Sumitomo Corporation Tubular Supply Oman (SCTSO), for the supply chain management of Oil Country Tubular Goods (OCTG) to Petroleum Development Oman (PDO), a joint venture between the Government of Oman and Shell. The contract, the largest ever won by the Medserv group, was awarded on February 26, 2017 and is for an initial period of five years with a five-year extension option.
On the other hand, the share price of Malita Investments plc sagged by 4.59 per cent to €0.81 on a turnover of €269k. The company announced that the Company's 5th Annual General Meeting will be held on April 27, 2016.
Santumas Shareholdings plc achieved a new milestone as its share price rallied by 10.71 per cent to a new high of €1.55 over six trades of 11,832 shares.
GlobalCapital plc ended a two month drought as the equity was dealt 6 times. This activity however negatively affected the equity as it closed 3.66 per cent lower at €0.395.
Loqus Holdings plc registered a three per cent gain as a single deal of 4,000 shares was executed at €0.17. The company announced the approval of the directors' half-yearly report for the six months ending December 31, 2016. The Group registered an overall profit for the period due to improvements in cost management however reported a reduction in revenue. No activity was witnessed in this equity this week.
The local coporate bond market experienced a negative month overall in February as out of 49 issues, 27 closed in the red, 18 gained ground and the remaining four closed unchanged. In total, 656 transactions were executed that summed up to a total of €6.7 million. The 4.25% GAP Group plc Secured € 2023 took the lion's share of this total as 152 deals amounting to just over €2 million.
Eden Finance plc announced that an application was submitted to the listing authority requesting the admissibility to listing of €35,000,000 Eden Finance p.l.c. Unsecured Bonds 2027. Subject to regulatory approval of this new bond issue, the issuer has resolved to redeem the 6.6% Bonds 2017-2020 on June 16, 2017, this being the first early redemption date provided for in the prospectus. The cut-off date for eligibility is March 27, 2017.
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]