The Malta Stock Exchange (MSE) Index appreciated by a further 2.47 per cent in November, to close at 3,541.448 points. With one month to go year’s end the MSE Index is up 10.3 per cent. During the month 21 equities were active of which 12 advanced, seven declined and two remained unchanged. 6pm Holdings plc (6PM) was the top performer for the month as its share price appreciated by 15.7 per cent, while Loqus Holdings plc plunged by 20 per cent.
November proved to be a fruitful month for the equities in the IT industry as all active issues in this sector locked an attractive gain. 6pm shares ended the month at £0.70 - after touching an intra-month high of £0.75 - as 21 deals of 97,062 shares were negotiated. Likewise, RS2 Software plc (RS2) soared by 8.3 per cent over 96 deals of 408,376 shares, to close €0.18 higher at €2.35. RS2 reported that Barclays Bank plc now holds 7,756,250 Ordinary Shares of RS2 (as at November 8, 2013), representing 18.25 per cent of RS2’s issued ordinary share capital with voting rights attached. RS2 also announced that it is actively considering a presence in the Latin American market by opening a support and sales office in the region next year.
Meanwhile, Crimsonwing plc edged 0.6 per cent higher as 18 trades of 150,517 shares were negotiated, closing at €0.85. The company registered a profit before tax of €770,365 for the financial period ending September 30, 2013, compared to €550,398 registered in 2012. Revenue for the period amounted to €9.86m, a rise of 13.67 per cent from 2012. The company further reported that it has recently concluded three new contracts, namely, a YourTeam contract for a leading supplier in the Netherlands specialised in delivering Microsoft Dynamics based multi-channel retail solutions throughout Europe, with an initial commitment for three years, with a contract value of approximately €2 million; another contract which will run through 2014 with an eCommerce global roll-out for an international nutrition and health company; and a Dynamics ERP contract for a printing industry leader which will run until 2015, with a contract value of approximately €2.5 million.
In the banking industry, Bank of Valletta plc headed the list of gainers as its share price rose by 3.2 per cent or €0.08, across 304 trades of 628,676 shares, closing at €2.61. Shareholders are now looking forward to the annual general meeting (AGM) of BOV which will be held on 19 December, 2013. The items on the agenda include the approval of the financial statements for the year ended 30 September, 2013 as well as the approval of the payment of a gross final dividend of €0.13 per share representing a gross payment of €39 million for payment on December 20, 2013. The bonus issue of one share for every 10 shares held is also to be approved - this will be allotted to members on the Company’s Register as at close of business on January 17, 2014 - increasing the issued share capital from 300 million to 330 million shares of €1 each fully paid up. Shareholders will be voting to elect the board of directors of the bank.
On a negative note, HSBC Bank Malta plc shares surrendered 4.2 per cent to close €0.11 lower at €2.54. The equity witnessed 86 trades of 230,325 shares throughout November. The bank reported a minimal decline in profit before tax during the period July 1, 2013 to November 18, 2013 compared to the same period in 2012. This result was due to a decline in interest margin earned and a lower contribution from the life insurance business. Operating expenses were less than in 2012 primarily due to non-recurrence restructuring costs that were accounted for in the prior year. HSBC further stated that there has been a lack of demand for personal and commercial loans, while customer deposit levels remained broadly unchanged. Meanwhile, loan impairments remained below the bank’s expectations. Meanwhile, Ranjit Gokarn will be relinquishing his post of Chief Operating Officer of the bank with effect from 3 January, 2014, to be appointed to the same role at HSBC Bank Turkey.
Lombard Bank Malta plc strengthened by €0.05 as 12 transactions of 23,950 shares were executed, closing at €1.90. On the other hand, FIMBank plc closed the month unchanged at $0.945 as five deals of 13,600 shares were struck.
The most liquid equity in November was MIDI plc active across 12 trades of 2,240,700 shares, closing 0.4 per cent lower at €0.254. The company has entered into 31 promises of sale agreements with respect to the Q1 block (as at 15 November, 2013) – out of a total of 39 residential apartments – amounting to a value of €30.7 million. The shell structure of Q1 block is at advanced stage and finishing works are expected to start in the early weeks of 2014. The company is expecting to deliver the recently launched Q1 apartments in 2015 and therefore the profits emanating from the sale of the apartments will be registered in 2015.
GO plc shares rallied by 10 per cent as 475,471 shares exchanged hands, closing €0.15 higher at €1.65. Likewise, International Hotel Investments plc (IHI) strengthened by €0.09 or 12 per cent over 14 transactions of 40,374 shares, to close at €0.84. IHI reported that hotel revenues, excluding Corinthia Hotel London, increased by 6.6 per cent to €83.8 million during the first nine months of 2013. Meanwhile, hotel gross operating profit increased by 10.7 per cent to €24.7 million. The Corinthia Hotel London – a 50 per cent owned associate – recorded a €38.7 million revenue and a gross operating profit of €11.3 million; an increase of 10.7 per cent and 60.4 per cent respectively. The non-hotel properties, namely the office and retail block in St Petersburg and the commercial centre in Tripoli registered a year-to-year growth of €1.5 million.
On a similar note, MaltaPost shares advanced by 4.8 per cent across 15 transactions of 47,114 shares, closing €0.05 higher at €1.10. The company board of directors will be meeting on 6 December, 2013 to consider and approve the financial statements for the year ended 30 September, 2013. The share price of Simonds Farsons Cisk plc increased by 0.4 per cent over 14 trades of 29,491 shares, closing at €2.85. Meanwhile, Middlesea Insurance plc remained unchanged at €0.85 as 12 deals of 19,620 shares took place.
Similarly, Malta International Airport plc (MIA) recorded an increase in its share price for the third consecutive month, appreciating by three per cent or €0.06 across 45 deals of 145,713 shares, to close at €2.08. The company reported that passenger movements registered in October increased by 17.4 per cent when compared to October 2012. Between January and October, there were over 3.5 million passenger movements, an increase of 9.9 per cent when compared to the same period last year. During the month, MIA was informed by its 40 per cent shareholder, Malta Mediterranean Link Consortium Limited (MMLC) that SNC-Lavalin, a shareholder in MMLC, is in discussions with third parties for the disposal of its shares in MMLC. This represents 38.75% of the issued capital of MMLC. Meanwhile, Michael Hoeferer resigned from the chairman position at MIA, but shall be retaining his directorship. Nikolaus Gretzmacher has now been appointed as chairman.
The other gainers for the month were Grand Harbour Marina plc (GHM) and Plaza Centres plc as they rose by 1.2 per cent and 1.8 per cent respectively. GHM’s equity witnessed one trade of 5,100 shares, to close at €1.82, while eight deals of 80,275 shares were executed in Plaza Centres to close at €0.57. GHM reported that total revenue reached €2.3 million during the nine months ending 30 September, 2013 – an increase of 12 per cent when compared to the same period in 2012.
Loqus Holdings plc sagged by 20 per cent on a single trade of 1,133 shares, to close at €0.08. Likewise, Island Hotels Group Holdings plc edged 3.3 per cent lower over two trades of 15,350 shares, closing at €0.899. Both Malita Investments plc and Tigne’ Mall plc registered a decline of one per cent and 1.4 per cent respectively on significant volumes.
Medserv plc slipped by a further 0.6 per cent as 10 trades of 51,800 shares were negotiated, to close at €3.35. The company reported that Medserv Operations Limited is securing a further 30,000sqm of land to enlarge the yard facility in Malta to meet the expected increase in business. The group purchased the 45 per cent interest in Medserv (Cyprus) Limited held by minority shareholders, therefore increasing the group’s equity interest to 100 per cent. Thereafter, the company sold a 20 per cent holding in the company to Caramondani Bros Public Co. Limited. Meanwhile, construction works of the solar farm based in Malta have commenced. The project will also include a 7,500sqm warehouse which will be used to store oil and gas field equipment. This project is planned to be completed by the second quarter of 2014. On the other hand, business in the Misurata base, although operational, continues to be slow.
In the corporate bond market, 33 issues were active of which 13 gained, 12 declined and eight closed the month unchanged. The recently issued 5.8% IHI 2023 rallied by 3.5 per cent. Meanwhile, Gasan Finance Company plc announced the allocation of the new 4.9% bond issue maturing in 2019-2021. The company received applications totalling €15,168,200 from bondholders of the 6% bonds due 2014-2016 and €389,100 in applications from directors and employees of the group. These applications were both allocated in full.
The company received a further €14,215,200 in applications from holders of the 6% bonds 2014-2016 who wished to increase their investment in the company. The bondholders were allocated 38.3621 per cent of the amount that they applied for, subject to rounding to the nearest €100. Meanwhile, applications from the public amounted to €13,322,100 - all applications were allocated the first €1,000 nominal and amounts in excess of €1,000 were allocated a further 8.124 per cent, subject to rounding to the nearest €100.
In the sovereign debt market, turnover amounted to over €29 million, spread across 26 issues of which 16 strengthened, nine declined and the 4.3% MGS 2016 (IV) traded unchanged. The most liquid issue for the month was the 4.5% MGS 2028 (II) as it witnessed a volume of just under €6.5 million.
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]