The Malta Stock Exchange (MSE) index started the year on a positive note as it appreciated by 0.48 per cent, to close at 3,703.617 points. Activity was spread across 22 equities of which 16 edged higher, five declined and one closed the month unchanged. Middlesea Insurance plc (Middlesea) headed the list of gainers, while Island Hotels Group Holdings plc (IHG) was the worst performer.

Bank of Valletta plc shares appreciated by three per cent on the highest volume for the month of 823,524 shares, to close at €2.479. The bank’s share price was adjusted to €2.382 on 15 January, due to the bank having issued one bonus share for every 10 shares held by shareholders on 17 January. The bank’s issued and paid up capital has increased to €330 million divided into 330 million ordinary shares with a nominal value of €1 each fully paid up.

In its interim directors’ statement, the bank reported that the financial period commencing on October 1, 2013 until 30 January, 2014, witnessed restrained credit growth that was alleviated by a satisfactory increase in the demand for house loans. Meanwhile, deposits grew at a faster rate. Net commission income continued to grow across all business lines, mainly driven by investment related activities, trade finance and card related business.

It also stated that Fitch has confirmed BOV’s long-term credit rating at BBB+ by outlining the bank’s leading franchise, strong funding base and its liquidity position, which benefits from a large and stable customer deposit base. As from 1 November, 2014, the bank will become subject to direct supervision by the European Central Bank (ECB) under the Single Supervisory Mechanism.

HSBC Bank Malta plc’s share price fell by 1.5 per cent as 150 deals of 416,305 shares were struck, closing €0.04 lower at €2.56. Conversely, Lombard Bank Malta plc shares advanced by €0.05 or 2.8 per cent across 12 transactions of 37,054 shares, to close at €1.86. The bank’s board of directors is scheduled to meet on 14 March, 2014 to approve the group’s and the bank’s final audited accounts for the financial year ended 31 December, 2013 and to consider the declaration of a final dividend to be recommended to the bank’s annual general meeting (AGM). The AGM will be held on 24 April.

Meanwhile, FIMBank plc (FIMBank) shares increased by a further 0.5 per cent over 18 trades of 103,078 shares, closing at $0.98. The trade finance bank struck an agreement with the current shareholders of PRVI Faktor (a factoring services and finance company with operations in Europe) for an initial investment of €4 million representing an acquisition of 40 per cent of the participating interests of the company valued at €2,122,280 and an additional capital injection of €1,187,720. FIMBank has an option to increase its investment to 60 per cent. The bank’s board of directors is scheduled to meet on 11 March, to consider and approve the group’s and the bank’s audited accounts for the financial year ended 31 December, 2013 and to consider the declaration of a dividend, if any, to be recommended to the AGM.

The bank announced that 115 shareholders holding 30.36 per cent of the total issued share capital of the company have accepted the joint voluntary bid launched on 9 December, 2013 by Burgan BAK S.A.K and United Gulf Bank and as a result of such acceptances, the aggregate shareholding of the offerers has reached 80.14 per cent of the total issued share capital of FIMBank. The FIMBank board resolved to request the listing authority’s approval to remain listed on the MSE notwithstanding that the proportion of the class of ordinary shares admitted to listing on the MSE owned by the public has fallen below the 25 per cent of the total issued share capital as required by the listing rules.

Middlesea Insurance plc’s share price surged by a significant €0.10 over 20 transactions of 32,646 shares, to close at €1.00. The company board is scheduled to meet on 13 March, to consider and approve the company’s audited financial statements for the financial year ended 31 December, 2013 and to recommend a dividend, if any. 

Malta International Airport plc’s shares registered an increase for the fifth consecutive month as it rose by €0.04 across 51 trades of 90,447 shares, to close at an all-time high of €2.20. The local airport operator ended 2013 with 12 record months of more than 4.03 million passenger movements. This reflects a 10.5 per cent year-on-year growth, in line with a 10.2 per cent increase in seat capacity achieved due to new registered routes and its growth forecast of two per cent for 2014.

Investors proved to be bearish towards the hoteliers industry as both International Hotel Investments plc (IHI) and IHG succumbed to selling pressure as their shares fell by 4.2 per cent and 5.6 per cent respectively. The former witnessed 20 trades of 236,907 shares, to close at €0.91, while the latter was active across 10 deals of 38,500 shares, closing at €0.85. The board of directors of IHG is scheduled to meet on 21 February, to review and approve the consolidated audited financial statements of the company for the year ended 31 October, 2013 and to consider the declaration of a dividend, if any, to be recommended to the AGM. Meanwhile, IHI announced that it has entered into an agreement with the Libyan Foreign Investment Company to set up a joint stock company which will own a mixed-use development, incorporating the five-star Corinthia Hotel in Benghazi.

GO plc added on €0.06 to its share price as 63 transactions of 178,734 shares were negotiated, closing 3.3 per cent higher at €1.885. The company announced that Forgendo Ltd participated in the share capital increase of Forthnet SA exercising in full its pre-emption rights as an existing shareholder of Forthnet. Through this exercise, Forgendo acquired 40,094,535 new shares in Forthnet at a cost of €12,028,360. The company further announced that Giradena Limited (“Giradena”) (a Cyprus–incorporated company, which is owned 50% by Forgendo Limited and 50% by Massar Investments LLC.) has also exercised in full its pre-emption rights as an existing shareholder of Forthnet.

Through this exercise Giradena acquired 2,670,000 new shares in Forthnet at a cost of €801,000. The company also announced that Forgendo has also exercised its oversubscription rights and that as a result of this process Forgendo has been allotted a further 1,034,720 new shares in Forthnet (equivalent to 0.94% of Forthnet’s share capital) at a cost of €310,416. Forgendo shall transfer the shares acquired through the oversubscription process to Giradena.

The company further announced that following the capital increase of Forthnet, Forgendo and Giradena hold 49,501,193 shares in Forthnet equivalent to a total of 44.96% of the share capital of Forthnet. The company announced that it has provided Forgendo with 50% of the funding required to participate in the Forthnet Capital Raise by way of an interest-free loan while the other 50% was provided by Emirates International Telecommunications Malta Limited (EITML). The loan provided by GO can, at the company’s discretion, be converted into equity within six months from the date on which the new Forthnet shares begin to trade. In case GO decides not to convert the loan into equity, EITML is obliged to convert their loan into equity and pay the GO loan on behalf of Forgendo.

In the I.T. industry, Crimsonwing plc shed 4.7 per cent of its share price as 709,505 shares changed ownership, closing €0.04 lower at €0.81. Conversely, RS2 Software plc shares minimally increased by 0.9 per cent across 37 deals of 109,411 shares, to close at €2.30. Likewise, 6PM Holdings plc’s share price advanced by 2.9 per cent as 10 trades of 43,750 shares were negotiated, closing at £0.72. Loqus Holdings plc shares rallied by 7.1 per cent across six trades of 37,910 shares, to close at €0.091.

Plaza Centres plc shares locked a 4.4 per cent gain as 12 trades of 127,100 shares were executed, closing at €0.60. The company board is scheduled to meet on 17 March, 2014 to consider and approve the company’s final audited accounts for the financial year ended 31 December, 2013 and to consider the declaration of a final dividend to be recommended at the company’s AGM. On the other hand, Tigne’ Mall plc was the only equity to close unchanged at €0.515. The equity was negotiated across six trades of 364,000 shares.

January proved to be a fruitful month for shareholders of Simonds Farsons Cisk plc as its shares soared by €0.10 or 3.5 per cent over eight deals of 13,184 shares, closing at €2.95. Likewise, Grand Harbour Marina plc (GHM) shares appreciated by 1.7 per cent over two deals of 6,195 shares, to close €0.03 higher at €1.85.

On a similar note, Malita Investments plc shares rose 1.9 per cent over nine trades of 113,643 shares, closing at €0.54. MIDI plc and Medserv plc registered a 2.4 per cent and a 1.6 per cent respective increase in their share price.  Trading in MIDI plc amounted to 238,095 shares across 21 deals, while nine deals of 69,850 shares were executed in Medserv plc.

Santumas Shareholdings plc’s share price increased by 10 per cent over four deals of 4,681 shares, closing €0.20 higher at €2.20. The company registered a profit before tax of €198,871 for the six-month period ended 31 October, 2013, compared to €329,372 registered in 2012. Meanwhile, revenue amounted to €25,861 for the same period, a decline of 33.2 per cent from 2012.

MaltaPost plc shares sagged by 2.6 per cent across 14 deals of 99,397 shares, closing at €1.12. The company has declared a final ordinary net dividend of €0.04 per nominal €0.25 share, representing a final net payment of €1,358,702 either in cash or by the issue of new shares at the option of each shareholder.

In the corporate bond market turnover amounted to over €1.9 million spread across 31 issues of which 12 gained ground, 11 slipped and eight closed unchanged. During the month, GHM purchased €68,800 of its 7% bonds due to mature in 2017-2020 from its bondholders. Meanwhile, AX Holdings plc announced that the board has submitted an application to the listing authority of the MFSA requesting the admissibility to listing of €40 million in bonds redeemable in 2024 with a coupon of 6 per cent. The prospectus dated 3 February, 2014 was issued and filed with the Registrar of Companies following approval by the listing authority.  The net proceeds from the new bonds will be used to develop a retirement complex in Naxxar, for general corporate funding purposes and to finance the redemption of the €11.6 million 6.7% bonds due 2014-2016. These bonds will be redeemed early on 15 December, 2014.

Meanwhile, in the sovereign debt market 26 issues were active in which short-dated issues declined, while long-term issues edged minimally higher. Total turnover amounted to over €105 million. The most liquid issue for the month was the 3.75% MGS 2015 (VI) as it witnessed a nominal turnover volume of over €38.7 million.