MSE Index up 1.04% in Q3
The MSE Equity Total Return Index advanced by 2.508% in September, closing at 8,726.996 points - registering a 1.04% gain in the third quarter of 2018 (Q3). Turnover amounted to €6.8 million, and was spread over 23 equities, of which nine fell and 13 gained ground.
FIMBank plc shares headed the list of gainers, having appreciated by 12.5%, as 250,474 shares changed ownership across 20 transactions, closing at a seven-month high of $0.63 - recording a 24.8% rally in Q3.
HSBC Bank Malta plc shares partially erased August's 8.6% loss, having recouped by 2.3% across 64 deals of 431,101 shares, to close €0.04 higher at €1.75 - down by 4.9% in Q3.
Bank of Valletta plc (BOV) shares closed in the red for the fourth consecutive month, having declined by 4% across the highest turnover of €1.6 million. BOV shares oscillated between a monthly high of €1.515, and a low of €1.44, and ultimately closed September €0.06 lower at €1.45.
BOV announced that the Arbiter for Financial Services delivered his decision with regards to the La Valette Multi-Manager Property Fund cases. Earlier this week, the Board announced that after taking legal advice and following careful consideration, Bank of Valletta p.l.c. (BOV) and BOV Asset Management Limited (BOV AM), where applicable, have filed their appeals before the Court of Appeal (Inferior Jurisdiction) from the decisions delivered by the Arbiter for Financial Services on September 12, 2018 in relation to fifty related cases where the Arbiter found in favour of the claimants.
Lombard Bank Malta plc shares traded flat at €2.42 on three trades of 37,179 shares. The banking equity recorded a 6.1% increase in the third quarter of 2018.
Malta International Airport plc (MIA) shares stayed faithful to their winning streak, having registered an increase for the third consecutive month. MIA shares were negotiated across 97 trades of 154,467 shares. The local airport operator's shares appreciated by €0.50 or 9%, and closed at a new high of €6.05 - up by a significant 21.5% in Q3.
MIA published its traffic results for the month of August, showing that this year's positive trend has persisted. An increase of 9.5% in passenger movements was registered compared to the same month last year, setting a new monthly traffic record of 759,547 passenger movements.
The rise was in line with a 9.7% increase in aircraft movements and a 10.5% increase in seat capacity. Seat load factor was down by 0.7 percentage points to 87.4%. The top markets for the airport were the United Kingdom, Italy, Germany, France and Spain, all of which experienced growth with the exception of Germany. One of the most improved destinations was Spain, which increased by 30% as a result of new routes being introduced to Bilbao, Malaga and Seville.
During the month, Ryanair announced 10 new summer routes from Malta as of next summer, which will increase passengers movement at MIA.
The investments and insurance services provider GlobalCapital plc registered a 10.5% loss, as 6,093 shares changed hands over three deals, to close €0.03 lower at €0.256 - sagging by 11.7% in Q3.
GlobalCapital published the financial results for the six month period ending June 30, 2018, showing a loss after tax of €1.9 million. This contrasts sharply with the profit after tax of €1.4 million registered during the corresponding period last year.
The performance was mainly impacted by a loss registered by GlobalCapital Life Insurance Limited, as a result of a negative movement in the fair value of investments, coupled with an increase in technical provisions consequent to additional business being written during the period. GlobalCapital Financial Management Limited and the Health Insurance Agency both registered declines in income and increases in costs, thus also contributing to the overall loss. Operating profit was also down, from €0.8 million, to an operating loss of €1.8 million. The loss translates to a fall in earnings per shares, from €0.046, to a loss per share of €0.065. The directors did not recommend the payment of an interim dividend.
In the same sector, Mapfre Middlesea plc shares fell by €0.03 or 1.6% across 14 transactions of 232,786 shares, closing at €1.83 - recording a 5.7% decline in Q3.
MIDI plc shares soared by 18.7% in Q3. However, the property management equity declined by 0.9% in September, as 177,058 shares changed hands over 23 trades, to close at €0.565.
Tigne Mall plc (Tigne) shares increased by 1.1%, as 13 deals of 91,363 shares were concluded, closing at €0.96. Tigne and MIDI announced that they have entered into a promise of sale and purchase agreement, whereby the latter shall sell and transfer to Tigne the right of use relating to the garage complex known as the T1 Car Park. The area comprises 132 car parking spaces over three underground levels, thereby increasing the number of car parking spaces owned by Tigne from 223 to 355. The emphyteutical grant signed between MIDI and the Government of Malta back in June 2000, was valid for 99 years, and thus, Tigne, has acquired the right of use for the remaining period of the agreement. The total consideration related to this agreement is €4.6 million. The promise of sale agreement shall remain valid up to November 30, 2018.
Plaza Centres plc shares decreased by €0.04 or 3.9% over 10 trades of 92,500 shares, to close at €1. Meanwhile, Main Street Complex plc shares fell by 1.5%, as 15,200 shares were executed across five deals, closing at €0.655.
Malta Properties Company plc shares advanced by 7.6%, as 113,524 shares changed ownership over 20 transactions, to close at €0.525. Meanwhile, Malita Investments plc shares slipped by 2.3% across 10 deals of 59,404 shares, closing at €0.87.
Simonds Farsons Cisk plc (SFC) shares appreciated by €0.35 or 4.8%, as 23 trades of 42,982 shares were executed, closing Q3 11.6% higher at €7.70 - an eight-month high. SFC published the group's unaudited financial statements for the six-month period ended July 31, 2018. The group registered a 4.1% increase in turnover over the corresponding period last year, as turnover reached €51.2 million. This translated to a 5.4% growth in operating profit, which stood at €7.2 million.
One of the main drivers for this positive performance was an upturn of 2.8% in the beer and branded beverages segment, which represents over half of the group's performance. The beverage and food importation companies also improved their contribution to profit, as revenues were up by 5.5%. Similarly, the operation of franchised food retailing establishments maintained the steady growth, with an increase in turnover of 3.5% and an increase of 5% in the segment's result. This growth was registered across the 14 restaurants operated by Food Chain Ltd. Profit before tax from continuing operations was registered at €6.6 million, 8% higher than the previous year.
This was the first reporting period following the Trident Estates plc (Trident) spin-off, representing a reduction in profit from discontinued operation of €62,000 compared to the previous year. Nevertheless, earnings per share increased by 5.7% to €0.204 for the six-month period, compared to the €0.193 in the same period last year.
The board of directors has resolved to distribute an interim dividend, out of tax exempt profits, of €0.0333 per share on October 10, to all shareholders on the register as at the close of business of September 26, 2018.
Meanwhile, Trident Estates plc published its unaudited financial statements for the six months ended July 31, showing a profit before tax of €107,000, down from the €167,000 registered last year. The group registered a turnover of €531,000, translating to an increase of 32% over the same period in 2017. This was mainly the result of the acquisition of the remaining 50% of the share capital of Sliema Fort Company Limited. As a result, gross profit was up by 19%, amounting to €433,000.
The decrease in profit before tax was driven by a 75% increase in administrative costs, reaching €326,000. The additional expenses were related to the Trident Park Project, as well as the company's listing on the MSE. Such relatively high expenses are somewhat expected, until the Trident Park Project starts generating its own rental income stream. The project is on schedule and is planned to be available to receive tenants at the start of 2021.
The Board is not declaring an interim dividend, and shall determine the extent of any final dividend distribution on the basis of the full-year results.
Trident shares were active on 20 deals of 73,865 shares, increasing by 1.5%, and closing Q3 5.5% higher at €1.34.
The telecommunications services provider GO plc recorded a 7.1% increase in its share price. GO shares were active on 63 transactions of 325,804 shares, closing €0.24 higher at a twelve-year high of €3.64 - rallying by 9% in Q3.
MaltaPost plc shares increased by €0.04 or 2.5% across 11 trades of 66,000 shares, to close at €1.65.
The oil and gas logistics services provider Medserv plc registered a 3.8% increase, as five deals of 10,550 shares were negotiated, closing €0.04 higher at €1.09 - up by 9% in Q3.
PG plc shares closed in the green for the fourth consecutive month, having advanced by 1.5% in September. The retail and super markets owner's shares were active on 52 transactions of 423,365 shares, and closed at €1.40.
Loqus Holdings plc shares fell by 5.6%, as two deals of 10,000 shares were negotiated, to close Q3 at a 15.5% loss, at €0.085.
In the I.T. sector, RS2 Software plc shares registered a decline for the third consecutive month, having slipped by 0.8%. The equity witnessed 22 trades of 98,176 shares and closed at €1.18 - down by 4.8% in Q3.
International Hotel Investments plc shares increased by 2.4% across nine transactions of 112,160 shares, closing at €0.645 - a seven-week high.
Santumas Shareholdings plc shares appreciated by 6.8%, as 16,000 shares changed ownership over four trades, to close €0.09 higher at €1.41.
In the corporate bond market, 55 issues were active, of which 28 gained ground and 17 declined. Turnover amounted to €7.7 million - 9.7% of which was negotiated in the 3.85% Hili Finance plc Unsecured 2028 bond.
The 5.1% 6PM Holdings plc Unsecured € 2025 was the best performer, having appreciated by 5.5%, as 67 deals worth €707,649 were negotiated, to close at €101.25. Meanwhile, the 5% Hal Mann Vella Group plc Secured Bonds € 2024 headed the list of fallers, having declined by 4.1%, as 11 trades worth €89,683 were concluded, to close at €104.01.
At the end of the month, the MSE announced that its board has approved the application for the admission to Prospects MTF of the proposed issue of €7.5 million D Shopping Malls Finance plc 5.35% Unsecured Bonds 2028.
In the sovereign debt market, turnover totalled €15.7 million, and was spread across 26 issues, of which two increased and 24 fell. The 4.45% MGS 2032 (II) was the worst performer, having declined by 1.6%, as 16 trades worth €0.5 million were executed, closing at €131.30. Meanwhile, the 2.3% MGS 2029 (II) was the most liquid issue, having witnessed a turnover of €2.2 million, to close 1.3% lower at €106.38.
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]