The Malta Stock Exchange (MSE) Index ended the month of August in negative territory, marking an end to its previous eight month-on-month consecutive gains. The index declined by 0.24 per cent, closing at 3,436.851 points. Activity was spread across 19 issues of which eight appreciated, nine fell and two closed unchanged. This negative sentiment was also experienced in international markets as all major indices recorded a drop in their value. The DOW Jones in New York slipped by 4.5 per cent, the NIKKEI 225 in Japan stumbled by a further two per cent, while the FTSE 100 in London contracted by 3.1 per cent.
In the local market, RS2 Software plc (RS2) headed the list of gainers as it surged by 30.8 per cent or €0.40 over high turnover which reached 273,927 shares, as it closed at €1.70. The increase was a reflection of the positive performance of the company for the period ended 30 June, 2013. The company registered a profit before tax of €5.3m, compared to €528,964 registered in 2012. Revenue for the period under review amounted to €9.7m, compared to €3.6m in 2012. Later on during the month, the company announced that Barclays Bank plc and Information Technology Management Holding Limited (ITM) have entered into an agreement for Barclays to acquire 4.25m shares from ITM in RS2, amounting to 10 per cent of the issued share capital of the company, at a pre-agreed price of €1.22 per share. Barclays also intends to purchase a further 10 per cent from the company’s shares listed on the MSE.
Conversely, the worst performer for the month was Malta International Airport plc which plunged by 7.8 per cent as 164,123 shares changed ownership across 53 deals, to close €0.16 lower at €1.88. The airport operator announced that passenger movements in July increased by 5.8 per cent, reaching another record number of 471,210 passengers.
Year-to-date passenger movements therefore have shown an increase of 8.4 per cent when compared to the same period last year, amounting to a total of 2.2m passenger movements. The Group registered a profit before tax of €8m for the six months ending 30 June, 2013, compared to €7m registered in 2012. Revenue for the period amounted to €25m, a rise of 10 per cent from 2012. The board of directors also approved a gross interim dividend of €0.046, which is payable by not later than 23 September, 2013.
In the banking industry, HSBC Bank Malta plc was the most liquid equity for the month as trading value reached €0.8m across 86 trades. The equity stumbled by 4.5 per cent during August as it closed at its monthly low of €2.58. The bank announced that the Group registered a profit before tax of €53m for the six-month period ending 30 June, 2013, compared to €53.3m registered in 2012.
Net interest income for the period amounted to €63.5m, a decline of 6 per cent from 2012. The board of directors also declared the payment of an ordinary gross interim dividend of €0.10 per share.
Similarly, FIMBank plc lurched 5.1 per cent downwards as 14 transactions of 21,119 shares were struck. The equity oscillated between a monthly high of $1.00 and a monthly low €0.939. The trade finance bank announced that the Group registered a loss before tax of €7.5m for the six months ended 30 June, 2013, compared to a €4.7m profit registered in 2012. Net interest income for the period amounted to €7.4m, a rise of 33 per cent from 2012.
On a positive note, Bank of Valletta plc and Lombard Bank plc strengthened by 3.4 per cent and 2.7 per cent respectively. The former witnessed 134 trades of 284,452 shares, to close at €2.38, while the latter was registered over 16 deals of 44,880 shares, closing at €1.90. Lombard Bank plc announced that the Group registered a profit before tax of €4.2m for the six months ended 30 June, 2013, compared to €4.3m registered in 2012. Net interest income for the period amounted to €7.7m, up from €6.8m in 2012.
Likewise, August proved to be a fruitful month for Island Hotels Group Holdings plc as the equity rose by an impressive 18.8 per cent or €0.13 across the highest overall turnover for the month of 574,320 shares, to close at its monthly high of €0.82. In the same industry, International Hotel Investments plc share price recouped by 1.1 per cent, despite the company having registered a loss before tax of €9.5m for the half-year ended 30 June, 2013. Revenue for the period amounted to €59.5m, a rise of 5.5% from 2012.
In the IT sector, Crimsonwing plc extended July’s gains as it strengthened by a further 7.3 per cent as 24 deals of 562,100 shares took place, closing at €0.74. The board of directors has resolved that the annual general meeting of the company shall be held on 16 October, 2013. Conversely, 6PM Holdings plc edged 1.5 per cent lower as 4,215 shares exchanged hands over five transactions, to close at £0.601. The group registered a profit before tax of £245,087 for the period ended 30 June, 2013, compared to £180,046 registered in 2012. Revenue for the period amounted to £4.5m, a rise of 16 per cent from 2012.
On the other hand, both Plaza Centres plc and Medserv plc closed the month unchanged at €0.565 and €3.70 respectively. In mid-August, the latter announced that it has been granted approval by the Listing Authority for the admissibility to listing on the Official List of the MSE of a €20m secured and guaranteed debt issuance programme. This week, Medserv plc announced that pursuant to the programme, final terms have been issued on 30 August, 2013 offering to the public in Malta the first series and tranche under the programme. The notes being offered are for €13m, with a 6 per cent coupon secured and guaranteed notes due 2023, with the issuer’s option to redeem from 2020. The offer period commences on 23 September, 2013.
In the telecommunications industry, GO plc sagged by 4.7 per cent as it shifted from a monthly low of €1.55 and a monthly high of €1.67, to finally close the month at €1.60. The company registered a profit before tax of €8.3m for the six-month period ended 30 June, 2013, compared to €20.4m registered in 2012. Revenue declined by 5 per cent when compared to 2012.
Similarly, Middlesea Insurance plc and MaltaPost plc both registered a decline in their share price as they sank by 1.8 per cent and 2.9 per cent respectively.
Likewise, both MIDI plc and Tigne’ Mall plc fell by 2.1 per cent and 2.8 per cent, to close at €0.235 and €0.515 respectively. The former registered a loss before tax of €1.9m for the six months ending 30 June, 2013, while revenue for the period amounted to €4.1m. Meanwhile, the latter registered a profit before tax of €680,128, compared to €437,219 registered in 2012, while revenue increased by 7.6 per cent from 2012.
The other gainers for the month were Simonds Farsons Cisk plc and Malita Investments plc (Malita) as they advanced by 1.8 per cent and 2.8 per cent respectively. The board of directors of Malita approved the payment of a net dividend of €0.00959 per ordinary share. The interim dividend will be paid on 13 September, 2013. The company registered a profit before tax of €6.8m for the six months ended June 30, 2013, compared to €668,178 registered in 2012, whilst revenue increased to €3.3m.
In the fixed-income market, total turnover in August amounted to over €58m. The Malta Government Bonds were the most liquid as 394 trades worth over €55m were transacted. The 6.5% MGS 2014 (II) was the most negotiated issue for the month as total trading volume exceeded €27m. Meanwhile, in the corporate bonds market 148 deals worth just under €3m 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]