MSE Index rallies by two per cent in June

The Malta Stock Exchange (MSE) index fully erased May's negative performance, having advanced by 2.04 per cent in June to close at 4,561.431 points - thus registering a 2.94 per cent gain for the first half of the year. Turnover in the equity market amounted to €6.3m and was spread across 21 equities of which nine gained ground, eight fell in value and four closed unchanged.

International Hotel Investments plc (IHI) shares recorded the best performance having appreciated by 12.7 per cent across the highest turnover for the month of €963,720, to close €0.079 higher at €0.70. IHI announced that its subsidiary CHI Limited has signed agreements with the UAE-based Meydan Group to provide technical services and to manage a luxury beachfront resort under construction in Dubai. Moreover, during its Annual General Meeting (AGM) held on June 9, 2016, all resolutions on the agenda were approved.

In the banking sector, HSBC Bank Malta plc (HSBC) shares were the only laggards having declined by 0.9 per cent as 66 trades of 235,369 shares were struck, closing at €1.596. HSBC announced that it has recognised an amount of €7.6m as income, from the cash consideration and preferred stock convertibles into ordinary shares it held in Visa Europe Limited, which was acquired by Visa Inc. on June 21, 2016. This one-off gain will be accounted for in the 'Net operating income' in the Income Statement for the period ending June 30, 2016. Another cash payment will be made in 2019, estimated at €1.4m.

Similarly, Bank of Valletta plc (BOV) received total consideration of €29m which will be reflected in the Bank's financial statements for the financial year ending September 30, 2016, with a deferred cash payment, including interest, to follow in three years' time.  The Bank will be retaining this consideration within its reserves, in order to strengthen its Core Tier 1 regulatory capital. During June the bank's shares oscillated between a monthly high of €2.249 and a low of €2.195 over 186 deals of 401,322 shares to then eventually end the month 0.3 per cent higher at €2.246.

FIMBank plc (FIMBank) shares extended their recent winning streak having registered an increase for the fifth consecutive month. The trade finance bank's shares were active on 63 deals of over 1.2m shares, closing 8.9 per cent higher at $0.92 - registering an impressive 45 per cent rally for the first six months of 2016. In its Interim Directors' Statement, the bank highlighted that it notched profits every month since the start of the year and has thus improved its performance when compared to the same period of 2015.

Lombard Bank Malta plc shares rose by €0.10 or 4.8 per cent over 24 transactions of 174,606 shares, closing 4.8 per cent higher at €2.20. Likewise, Mapfre Middlesea plc shares strengthened by 8.6 per cent as 12 trades of 17,835 shares were struck, to close €0.19 higher at €2.40.

GO plc (GO) shares registered a €0.04 or 1.4 per cent decline as 53 deals of 217,330 shares were executed, closing at €2.86. The company announced that Tunisie Telecom published its offer document with the terms and conditions of its voluntary offer available to shareholders on the company's share register as at June 17, 2016. The acceptance period, during which GO's shareholders may accept Tunisie Telecom's offer, is between June 24 and July 22.

GO expressed that the acquisition will be beneficial to the Company as Tunisie Telecom is committed to continue investing in Malta and to support GO's investments in other segments including 4G, the FTTH roll-out and expansion of data centres. Moreover, the Voluntary Bid should not presently generate any significant changes to the actual employment structure of the company and the conditions of employment of the Company's employees and management. No opinion was given on the price of €2.87 per share offered in the Offer Document.

Malta Properties Company plc shares partially erased May's losses having advanced by 4.5 per cent as 36 deals of 189,223 shares were executed, to close at €0.535. Similarly, MaltaPost plc shares strengthened by 10.5 per cent as 34,888 shares changed hands, closing €0.189 higher at €1.99.

The share price of Simonds Farsons Cisk plc stumbled by €0.22 or 3.4 per cent over 19 transactions of 79,915 shares, to close at €6.28. Conversely, GlobalCapital plc shares soared by 10.6 per cent as eight deals of 22,400 shares were struck, closing at €0.499.

Meanwhile, Malta International Airport plc shares edged 1.2 per cent lower across 43 transactions of 112,591 shares, closing €0.05 lower at €4.25. Likewise, Malita Investments plc shares slipped by 1.1 per cent as 10 trades of 119,310 shares were executed, to close at €0.89.

In the I.T. sector, RS2 Software plc shares recouped by 0.6 per cent across 45 trades of 198,606 shares, closing at €3.50. Meanwhile, Loqus Holdings plc shares traded flat at €0.131 as 4,424 shares changed ownership across three deals.

Santumas Shareholdings plc shares declined by 1.3 per cent over two transactions of 1,028 shares, closing at €2.35. On a similar note, MIDI plc (MIDI) shares declined by one per cent as six trades of 14,000 shares were struck, to close at €0.38.

Tigne Mall plc shares fell by 0.9 per cent across three deals of 1,420 shares, closing at €1.05. On the other hand, Plaza Centres plc shares traded flat at €1.07 as two trades of 8,398 shares were executed.

Similarly, Grand Harbour Marina plc shares traded unchanged as a sole transaction of 1,000 shares was negotiated at €0.90. Elsewhere, Medserv plc shares closed unchanged at €1.79 as 15 trades of 67,871 shares were dealt.

In the corporate bond market, 48 issues were active of which 21 fell in value, 15 increased and 12 closed unchanged. Turnover totalled €3.9m. The 5% GlobalCapital plc Unsecured € 2021 was the best performer having increased by two per cent, to close at €102, while the 6% Island Hotels Group Holdings plc € 2024 headed the list of fallers having declined by seven per cent to close at €106.

MIDI will be issuing a new secured bond of €50m, which will be offered at par and subject to a minimum subscription of €2,000.  The new bond will mature in 2026 and holds a coupon of four per cent. The company will grant preference of up to €2m to shareholders and €40,832,900 to holders of the 7% MIDI plc 2016-2018 denominated in EUR and GBP. Applications are now open.

Similarly, IHI plc will be issuing a new secured bond of €55m, maturing in 2026 with a coupon of four per cent. The bond will be guaranteed by IHI Magyarország Zrt - the owner and operator of the Corinthia Hotel Budapest.  The company is granting IHI shareholders who were on the company's register at June 30, 2016, preference of up to €30 million to subscribe to the new bond, which will be issued at par. Applications are also open for this bond.

In the sovereign debt market 26 issues were active of which nine declined and 17 advanced. Turnover amounted to €44.1m. The 2.5% MGS 2036 (I) was the most liquid issue having witnessed a turnover of €12m, to close 0.9 per cent higher at €106.57.