MSE Index ends January 2.7% higher
The MSE Index more than doubled December's positive return as it advanced by 2.68 per cent in January, to close at 3,420.191 points. This was the result of 15 equities registering healthy gains, while five edged lower and two closed unchanged. Total turnover amounted to €5.07 million as five equities closed the month at their all-time high.
MaltaPost plc shares appreciated by €0.11 or 9.2 per cent as 17 trades of 83,152 shares were struck, closing at €1.31- an all time high. Likewise, Tigne Mall plc and RS2 Software plc shares closed at record highs of €0.65 and €2.98 respectively. The former witnessed seven transactions of 347,000 shares, while the latter was active across 32 deals of 191,217 shares. Furthermore, Simonds Farsons Cisk plc shares registered its fifth consecutive monthly gain, to close at a record high of €3.09 on a low volume of 3,931 shares
Malta International Airport plc (MIA) shares soared by €0.15 or 6.4 per cent as 142,789 shares changed ownership, closing at a record high of €2.50. The local airport operator forecasts to host around 4.4 million passengers in 2015 - a two per cent growth over 2014, which was a record year. Last year MIA hosted 4.29m passengers - a 6.4% increase on 2013. Furthermore, this year MIA is committing €4 million worth of investments. The Board of Directors is scheduled to meet on February 24, 2015 to consider and approve the company's financial statements for the financial year ended December 31, 2014, and to consider whether to declare and recommend a dividend.
In the banking sector, Lombard Bank Malta plc shares outperformed other financial equities having advanced by 6.7 per cent across 40 deals of 187,025 shares, closing €0.121 higher at €1.92. Similarly, HSBC Bank Malta plc shares oscillated between a monthly high of €2.03 and a low of €1.956, to ultimately close at €2. Meanwhile, Bank of Valletta plc shares edged 1.8 per cent higher, when taking into consideration the one bonus issue for every 11 shares held. The equity closed the month at €2.09.
FIMBank plc shares were the only fallers in the banking sector, having registered a decline of 8.3 per cent as 43,151 shares changed hands, to close at $0.55. Fitch Ratings downgraded the bank's long-term Issuer Default Rating (IDR) and Viability Rating (VR) to BB- from BB, with a stable outlook. Fitch has affirmed FIMBank's short-term IDR at B. The long-term IDR and VR have been downgraded to reflect the bank's high risk appetite, which has resulted in a significant deterioration in asset quality, as well as unstable and weak earnings.
Middlesea Insurance plc shares eased a minimal 0.4 per cent lower as 19 transactions of 31,302 shares were struck, to close at €0.99. The Board of Directors of the company is scheduled to meet on March 11, 2015 to consider and approve the company's audited financial statements for the financial year ended December 31, 2014 and to consider the recommendation of a dividend.
Crimsonwing plc (Crimsonwing) shares slid by 1.9 per cent across 17 trades of 166,194 shares, to close at €0.844. The company reported that in connection with the offer received from KPMG Investments Malta Limited (the offeror) for a voluntary public bid for the acquisition of the entire issued share capital of Crimsonwing, have as at January 20, 2015 (the closing date) received acceptances in respect of 29,506,296 shares in the company, amounting to approximately 97.7 per cent of the entire issued share capital. Trading in Crimsonwing shares has now been suspended for the purpose of completing the process of transfer of the entire issued share capital in favour of the offeror. Within a maximum of three months from the closing date of the offer, the offeror is entitled to require all the remaining shareholders to sell and transfer to the offeror the remaining shares in Crimsonwing.
Grand Harbour Marina plc and MIDI plc shares fell by 6.2 and 4.2 per cent to close at €1.75 and €0.622 respectively. On a positive note, Plaza Centres plc strengthened by 5.5 per cent on a volume of 94,000 shares while Loqus Holdings plc shares gained a slight 0.7 per cent. Meanwhile, the non-movers for the month were Santumas Shareholdings plc and 6PM Holdings plc shares as they traded flat at €2 and £0.70 respectively.
Malita Investments plc extended its recent upward streak as its share price climbed 3.4 per cent across eight trades of 91,000 shares, to close just shy of its all-time high of €0.67, at €0.662. Similarly, the share price of Medserv plc increased by 1.4 per cent as the equity was negotiated over ten trades of 61,700 shares, closing at its 17-month high of €1.47. Meanwhile, GO plc shares appreciated by two per cent over 66 trades of 150,626 shares, to close €0.05 higher at €2.60.
During the month of January, International Hotel Investments plc (IHI) entered into a conditional agreement with a view to merge the assets and operations of Island Hotels Group Holdings plc (IHGH) within those of IHI through the acquisition by IHI of IHGH. The agreement is subject to the satisfaction of various conditions over the coming months, including compliance with regulatory requirements and obtaining shareholders' approvals, as well as conducting a satisfactory due diligence on IHGH. IHI has indicated a tentative Enterprise Value of €106.5 million and a tentative Net Equity Value of IHGH of €50 million. IHI has indicated that it would proceed with a voluntary offer for all the shares of IHGH in which the price for IHGH shares would be paid as to €1 in cash, split into two tranches, the first tranche of €0.55 payable on completion and the second tranche payable 12 months later. In addition, IHGH shareholders will receive 0.246 IHI shares for each IHG share held, through the issue of 9 million shares by IHI.
Following this announcement, IHGH shares soared by 20 per cent across four trades of 8,000 shares, to close €0.17 higher at €1.02. Meanwhile, IHI shares registered a seven per cent gain as it witnessed 54 deals of 253,970 shares, reaching a monthly high of €0.659 to then end the month at €0.62 following the terrorist attack at the Corinthia Hotel in Tripoli which occurred a few days after the announcement of the conditional agreement.
The directors of IHGH announced that a board meeting is scheduled for February 24, 2015 when the directors will review and approve the consolidated audited financial statements of the company for the year ended October 31, 2014. Furthermore, an Extraordinary General Meeting (EGM) will be held on February 20, 2015 to consider and, if thought fit, approve an ordinary resolution so that the company will be authorised and empowered to make such disclosures, including disclosure of price sensitive information, as the directors may consider appropriate to enable IHI to consider making a binding offer for the shares of the company, subject to compliance with the terms set out in Listing Rule 5.174 of the Listing Rules.
In the corporate bond market turnover amounted to €9.01 million spread across 43 issues of which 24 gained ground, 13 declined and six closed unchanged. The 7.15% Mediterranean Investments Holding (MIH) in USD and EUR 2015-2017 were the worst performers as they stumbled by 13 per cent and 5.7 per cent, to close at $87 and €90.50 respectively. Conversely, the 6% Mediterranean Bank plc Subordinated Unsecured in EUR and GBP 2019-2024 headed the list of gainers as they advanced by 3.4 and 3 per cent respectively, to close at €105.50 and £103 respectively. The 5.1% PTL Holdings plc Unsecured € 2024 and the 5% Hal Mann Vella Group plc Secured Bonds € 2024 were the most active issues, witnessing a turnover of €1.4m and €1.04m.
In the sovereign debt market long-dated issues continued to gain ground, while short-term issues declined marginally as total turnover amounted to €82.7 million. The short-dated 6.1% MGS 2015 registered a 0.5 per cent loss, to close at €102.10, while the 4.1% MGS 2034 advanced by a remarkable 6.2 per cent, closing at €119.30. The latter was also the most liquid issue as it witnessed a traded value of over €15.5 million. This positive performance registered in long-dated issues shadowed the European Central Bank's (ECB) announcement of its commitment to a quantitative easing programme worth €1.1 trillion to counter deflation.
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]