MSE Index falls by 0.9% in December but gains 33% in 2015

The Malta Stock Exchange (MSE) index ended the last month of 2015 0.94 per cent lower, to end the year at 4,430.985 points and thus registering a 33 per cent yearly gain. Turnover in the equity market amounted to €8.7m spread across 20 equities of which nine gained ground, eight fell in value while three closed unchanged.

Malta Properties Company plc shares headed the list of fallers having declined by 22.3 per cent as 218 deals of 1.6m shares were negotiated, closing €0.145 lower at €0.505. Similarly, Medserv plc shares oscillated between a monthly high of €2.17 and a low of €1.65, to ultimately close 17.5 per cent lower at €1.75. The equity was active on 54 trades of 119,102 shares. Notwithstanding the decline registered in December, Medserv plc shares were among the best performers in 2015 with a 117 per cent gain.

During the company's extraordinary general meeting, shareholders approved the acquisition of Middle East Tubular Services Limited, Middle East Tubular Services (Iraq) Limited and Middle East Tubular Services LLC, FZC (METS). Moreover, shareholders also approved the increase of the authorised share capital of the company to €12m divided into 120m shares of €0.10 each share and to authorise the board of directors to issue and allot the unissued equity securities in the Company up to the maximum amount set by the authorised share capital and to restrict or withdraw the statutory pre-emption rights of the Company's shareholders for as long as the said board remains authorised to issue and allot equity securities in terms of this resolution.

In the banking sector, HSBC Bank Malta plc was the only negative performer having registered a 1.6 per cent decline as 94 trades of 247,929 shares were struck, closing at €1.762 - the equity ended the year practically flat with a modest 0.4 per cent gain. The bank announced that the next board meeting will be held on February 22, 2016 to approve the final audited accounts for the financial year ending December 31, 2015 and to consider the declaration of a final dividend to be recommended at the bank's forthcoming Annual General Meeting due to be held on April 15, 2016.

Its peer, Bank of Valletta plc registered a 1.7 per cent increase in its share price as 187 deals of 525,217 shares were struck, to close at €2.35 - thus registering a 14.5 per cent gain over the previous year. 

Meanwhile, FIMBank plc shares outperformed other equities in its sector, having rallied by an impressive 17.9 per cent over 42 transactions of 610,674 shares, closing at $0.66.

Lombard Bank Malta plc shares recorded an increase for the sixth consecutive month, having appreciated by €0.135 or 5.7 per cent, to close at its monthly high of €2.485 and thus ending the year 45 per cent higher. The equity was active on 45 transactions of 905,696 shares. The bank announced that during the next board meeting on March 10, 2016, the board of directors shall approve the Group's and the Bank's final Audited Accounts for the Financial Year ending December 31, 2015 and consider the declaration of a final dividend to be recommended to the Bank's Annual General Meeting, to be held on April 28, 2016.

In the I.T. sector, RS2 Software plc shares continued to triumph having advanced by €0.065 or 2.1 per cent, closing just below its record high of €3.175, at €3.16 as 252,419 shares changed hands. The equity recorded a significant 116.4 per cent rally in 2015.

6PM Holdings plc shares edged 2.9 per cent higher over eight transactions of 22,979 shares, closing at £0.70. Conversely, Loqus Holdings plc shares declined by a minimal 0.8 per cent across a sole trade of a scant 500 shares, to close at €0.12.

Mapfre Middlesea plc shares rose by €0.18 or 8.5 per cent as 17 deals of 17,168 shares were executed, closing at €2.30. The insurance provider's equity registered the best performance for 2015 having strengthened by 131.4 per cent.  

Malta International Airport plc shares edged 0.8 per cent higher over 93 transactions of 224,806 shares, closing the month at €4.03. Traffic results for November 2015 recorded an upward trend in journeys, passenger movements, seat capacity and in cargo and mail shipping. Flights to Spain, Italy and the United Kingdom registered an increase in passengers when compared to the same period of the previous year, while traffic numbers to France and Germany dipped.

The local airport operator announced that with continuous year on year growth, the company intends to carry on investing in the airport. The company outlined an investment plan of a capital expenditure of €9.8m for 2016 which include a €6.3m investment through the rehabilitation of Apron 9, upgrades on Runway 23-05, and the replacement of the instrument landing system as well as a new state-of the art Airport Operational Data Base system. In addition, €28m will be invested in the Terminal Expansion and an estimated €40m on the development of SkyParks 2.

MaltaPost plc shed 8.9 per cent of its share price as nine deals of 123,525 shares were negotiated, closing €0.178 lower at €1.812. The company reported that it had achieved a profit before tax of €3.38m for the financial year ended September, 30 2015, compared to €2.74m registered in 2014. Revenue for the period under review amounted to €25.7m, an increase of 8.4 per cent over the same period in 2014. The Board of Directors has resolved to recommend for the approval at the Annual General Meeting the payment of a final net dividend payment of €0.04 per nominal €0.25 share, to be received as cash or new shares, at the discretion of shareholders. The attribution price of the said shares has been established at €1.80 per share.

Plaza Centres plc shares increased by 3.1 per cent over a sole trade of a mere 16 shares, to close at €1. Meanwhile, Tigne Mall plc shares closed the month unchanged at €0.94. The equity witnessed 10 deals of 58,416 shares.

The other non-movers were MIDI plc and Malita Investments plc having closed unchanged at €0.365 and €0.95 respectively.

International Hotel Investments plc shares stumbled by 11.4 per cent across 22 deals of 74,160 shares, closing at €0.75. Similarly, Simonds Farsons Cisk plc shares declined by €0.37 or 5.8 per cent as 11,848 shares changed ownership, to close at €6, resulting in a 96.7 per cent yearly gain.

Grand Harbour Marina plc shares declined by 3.9 per cent over a sole trade of 500 shares, closing at €1. On the other hand, GO plc shares edged 0.7 per cent higher as 407,112 shares changed hands, to close at €3.02.

In the corporate bond market turnover totalled €1.9m spread over 41 issues of which 22 decreased in value, eight rose and 11 closed unchanged. The 7% MIDI GBP 2016-2018 was the worst performer having declined by 7.3 per cent, to close at £102, while the newly-issued 3.5% BOV € Notes 2030 S1 T1 headed the list of gainers having appreciated by 4.5 per cent, to close at €104.50.

Medserv plc has been granted approval by the Listing Authority for the admissibility to listing on the Official List of the MSE of €30,000,000 Unsecured Bonds redeemable in 2026 in any one or a combination of, a 5.75% USD Unsecured Bond redeemable in 2026 of a nominal value of $100 each issued at par (minimum investment and retention amount per investor of $55,000) and a 4.5% Euro Unsecured Bond redeemable in 2026 of a nominal value of €100 each being issued at par (minimum investment and retention amount per investor of €50,000). The Bonds shall be initially offered to financial intermediaries for subscription, with any unsubscribed amounts offered to the public. Furthermore, the company is offering 10,000,000 ordinary shares by way of a rights issue on the basis of two shares for every nine shares already held at a share offer price of €1.50 per ordinary share, to shareholders on the Company's register as at December 29, 2015. The proceeds will be used to fund the acquisition of the METS Group.

In the sovereign debt market 27 issues were active of which 25 closed in negative territory and only two advanced as turnover reached €15.1m. The 4.1% MGS 2034 (I) recorded the worst loss of 2.8 per cent, to close at €125.70, while the 2.3% MGS 2029 (II) FI Oct 15 r witnessed the highest turnover worth €3m. 

We wish our readers a prosperous New Year.