The Malta Stock Exchange (MSE) Index more than erased November's 0.94 per cent loss with a 1.8 per cent gain in December to close the month and year at 3,331.081 points - representing a 9.6 per cent decline in 2014. Turnover in the equity market amounted to €3.8m spread across 20 equities of which 13 gained ground, four fell in value and three closed unchanged. Loqus Holdings plc (Loqus) shares registered the highest gain for the month, while FIMBank plc shares headed the list of fallers.
In the banking sector, Lombard Bank Malta plc shares marked the best performance appreciating by four per cent or €0.069 as 13 trades of 101,884 shares were struck, to close at €1.799. This equity was the only banking equity to register a gain in 2014, amounting to 4.7 per cent. The Board of Directors of Lombard reported that it is scheduled to meet on March 9, 2015 to approve the group's and the bank's final audited accounts for the financial year ended December 31, 2014 and to consider the declaration of a final dividend to be recommended to the bank's Annual General Meeting (AGM). The AGM is scheduled to be held on April 22, 2015.
In 2014 declines were registered in the share price of both major banks - Bank of Valletta plc (BOV) shares fell seven per cent while HSBC Bank Malta plc (HSBC) shares dropped by 16.7 per cent. In December, BOV witnessed the highest turnover of €1.27m to close 0.5 per cent higher at €2.24, while 115 trades worth €634k were deal in HSBC to close 2.4 per cent higher at €1.95. The Board of Directors of HSBC is scheduled to meet on February 23, 2015 to approve the group's and the bank's final audited accounts for the financial year ended December 31, 2014 and to consider the declaration of a final dividend to be recommended to the AGM.
FIMBank plc shares declined by 4.8 per cent over four trades of 18,589 shares, to close $0.03 lower at $0.60 - thus recording a significant 32.3 per cent slump for the year.
Various equities closed the month at their all-time highs - Simonds Farsons Cisk plc shares soared by €0.031 over five deals of 10,860 shares, closing at their record high of €3.051. In its Interim Directors' Statement the company reported that its performance particularly for the core business, has been positive and in line with expectations. The construction works on the new beer packaging hall are progressing according to schedule and the board is confident that this project shall be delivered as per established project plan and on budget. Works on the concept and design for the initial phases of the development should be finalised by mid-2015.
Likewise, Malita Investments plc shares increased for the fourth consecutive month as they climbed by a further 4.9 per cent on nine transactions of 70,200 shares, to close at its all-time high of €0.64 - also registering a 20.8 per cent increase in 2014. Similarly, Tigne Mall plc shares soared by 7.1 per cent in December - the equity was active across six trades of 49,000 shares, closing at its record high of €0.60 - representing a 16.5 per cent rally for the year.
In the I.T. sector, Loqus shares soared by 21.7 per cent as three trades of 19,000 shares were negotiated, to close at €0.14 - recording the highest gain of 64.7 per cent in 2014. Meanwhile, RS2 Software plc shares eased 0.3 per cent lower in December as 6,180 shares changed hands across seven deals, closing at €2.92 to end 2014 up by a staggering 35.6 per cent.
Crimsonwing plc shares appreciated by a significant €0.091 or 11.8 per cent over seven transactions of 11,103 shares, to close at €0.86 - thus ending the year 1.2 per cent higher than 2013. The company reported that the Board of Directors met to discuss the offer received from KPMG Investments Malta Limited (Offeror) for a voluntary public bid in respect of all the issued shares in Crimsonwing with the intention of acquiring the entire issued share capital of the company. The voluntary bid is conditional and subject to the fulfilment, or waiver by the offeror, attaining at least 90 per cent of the issued share capital of Crimsonwing.
The offer document declares the offeror's intention to propose to the Board of Directors and the general meeting of the company to apply to the Listing Authority for the delisting of the shares in the company from the official list of the MSE. Based on the representations made in the offer document and the content of the expert's report, the Board of Directors of Crimsonwing is of the opinion that the acquisition will be beneficial to the company, will create greater business opportunities identified within the company's existing markets and increase the likelihood that the Maltese delivery centre will develop as a centre of excellence. Mr David Walsh and Mr Philip Crawford both directors and shareholders of Crimsonwing who hold approximately 42.98 per cent and 21.03 per cent respectively of the issued share ordinary share capital of the company have informed the board of their intention to accept to sell all the shares held by them as part of the bid.
On the other hand, 6pm Holdings plc shares closed unchanged at £0.70 as four transactions of 20,800 shares were negotiated. The other non-movers for the month were MaltaPost plc and Island Hotels Group Holdings plc closing unchanged at €1.20 and €0.85 respectively. The Board of Directors of MaltaPost approved the company's financial statements for the year ended September 30, 2014. These will be submitted for approval of the shareholders at the forthcoming AGM scheduled on January 16, 2015. The company registered a profit before tax of €2.74 million, compared to €1.99 million registered in 2013. Revenue for the period amounted to €23.7 million, an increase of 9.6 per cent from 2013. The Board resolved to recommend for the approval of the AGM, the payment of a final ordinary net dividend of €0.04 per nominal €0.25 share giving shareholders the option of receiving the dividend either in cash or by the issue of new shares. The attribution price, at which the number of new shares to be issued will be determined has been established at €1.16 per nominal €0.25 share.
International Hotel Investments plc shares advanced by 8.2 per cent during the month of December over 16 trades of 62,722 shares, to close at €0.579 - this notwithstanding, this equity has marked a 39.1 per cent fall on the previous year. During the month, the company reported that its main aim has been to breakeven in the Tripoli hotel operation. The adjoining commercial centre, which generates €6 million in rental income on an annual basis, continues to be occupied by oil-sector blue chip tenants. In St. Petersburg, the challenge is to target as much business as possible from within Russia itself. Revenues within Russia this year have amounted to 35 per cent, compared to 25 per cent last year. The company budgets for 2015 have been set assuming zero growth in Libya and marginal growth, mainly through a Ruble correction, in St Petersburg. The hotels in Malta, London, Lisbon, Prague and Budapest are all budgeted to register further improvements in 2015, with an expectation to regain the record €42 million profit levels of 2013 by 2016.
Malta International Airport plc (MIA) shares failed to sustain last month's positive momentum as they slipped by 2.1 per cent on 28 trades of 102,338 shares, to close €0.05 lower at €2.35. MIA hosted 256,305 passengers in November, marking a 2.9 per cent increase compared to the same month last year - an all-time record for November. These results occurred despite aircraft movements having decreased by 1.8 per cent. The rise in passenger numbers was largely due to a record seat load factor of 80.4 per cent, up from 76.4 per cent last November. Between January and November this year, MIA saw an increase of 6.5 per cent when compared to last year's figures, hosting a total of 4,063,836 passengers.
Grand Harbour Marina plc shares eased 0.3 per cent lower as 11,800 shares changed ownership, to close at €1.865. Conversely, MIDI plc shares rose 14.3 per cent higher across seven trades of 94,050 shares, closing at €0.24 - despite this gain, MIDI plc shares declined by 17.2 per cent in 2014 .
Medserv plc shares closed at a 16-month high of €1.45 as 74,000 shares were dealt over 20 transactions - registering a 5.8 per cent gain on the month and a 13.3 per cent yearly gain. Meanwhile, GO plc shares ended the month 0.4 per cent higher at €2.55 as 60 trades of 356,938 shares took place - ending the year 39.7 per cent higher. Plaza Centres plc shares appreciated by €0.03 in December as 18 deals of 291,418 shares were struck, to close at €0.65 - representing a 13 per cent gain for the year.
In the corporate bond market turnover amounted to €6.8 million, spread across 40 issues of which 29 gained ground, three declined and eight closed unchanged. The 7.5% Mediterranean Investments Holding plc € 2015 registered the best performance as it strengthened by 7.2 per cent, to close at €97. Meanwhile, the 5% Hal Mann Vella Group plc Secured Bonds € 2024 was the most liquid issue as it witnessed a turnover of €941,323.
Finally, in the sovereign debt market 29 issues were active of which 10 short-dated issues declined, while 19 long-term issues edged higher, as turnover reached €35.8 million. The 4.3% MGS 2033 (I) recorded the highest gain of 1.9 per cent, to close at €115.21, while the 4.5% MGS 2028 (II) was the most active issue as it witnessed a turnover of €4.8 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]