MSE ends February higher as global equities slump
The MSE Equity Total Return Index partially recouped January's 0.365% loss, having advanced by 0.301%, to close February at 8,663.499 points. The local equity index was not in the least impacted by the sharp falls experienced by global equities as the anticipation of higher interest rates in the United Stated became more evident. Locally, turnover in February fell from €8.1 million to €6.4 million spread across 22 equities of which 13 fell and eight gained ground.
HSBC Bank Malta plc shares had a fruitful month having fully reversed the previous month's minimal 0.2% loss and appreciated by €0.17 or 9.6%. The equity was active on 97 trades of 311,819 shares and closed at €1.95. The bank announced that profit before tax for 2017 amounted to €49.8 million, which translates in a decline of 19.9% over 2016, when the bank's financial results included a one-off gain on disposal of the bank's membership interest in Visa Europe, amounting to €10.8 million. Adjusted profit before tax, which excludes the effect of notable items, was €55.6 million, still 9.5% down from 2016.
The bank announced a net dividend for the year which is however 54% higher than the prior year at €40.2 million, €20 million of which is a special dividend to be distributed from surplus retained earnings. A final net dividend of €0.081 per share will be paid on April 19, 2018 to shareholders who are on the bank's register on March 13, 2018.
Bank of Valletta plc shares registered an increase for the third consecutive month. The equity climbed by 0.6% as 887,731 shares changed ownership over 234 deals, to close at €1.82. The bank announced that the arbiter for financial services has handed down his decision with respect to a number of complaints relating to the La Valette Multi Manager Property Fund. The bank is still reviewing the details of the decision and the Board of Directors will be discussing the matter and deciding on the appropriate actions to take in the best interests of the bank.
Lombard Bank Malta plc shares advanced by €0.10 or 4.4% across 14 transactions of 70,098 shares, closing at €2.40.
FIMBank plc shares extended the previous month's 1.5% loss having slid by 8.8% as 14 trades of 79,337 shares were executed, to close $0.06 lower at $0.62. The trade finance bank announced that the board is scheduled to meet on March 13, 2018 to consider and approve the group's and the bank's audited accounts for the financial year ended December 31, 2017 and consider the declaration of a dividend, if any, to be recommended to the Annual General Meeting (AGM) of shareholders.
The insurance and investments services provider Mapfre Middlesea plc registered a 3.9% increase in its share price, erasing January's 0.1% decline. The equity witnessed eight deals of 21,218 shares and closed €0.07 higher at €1.85.
Santumas Shareholdings plc shares partially erased January's 0.7% increase, having declined by 0.7% over three trades of 12,000 shares, closing at €1.50.
Malta International Airport plc (MIA) shares oscillated between a monthly high of €4.98 and a low of €4.76, to ultimately close at €4.94 - registering an increase for the sixth consecutive month. The local airport operator's shares climbed 1.7% and were negotiated across 78 transactions of 151,876 shares.
MIA announced that it has started 2018 with an upswing of 16.7% in passenger numbers. A number of route developments and increased flight frequencies during the winter season contributed to a 15.2% increase in aircraft movements and 16.8% increase in seat capacity. Seat load factor however, decreased by a marginal 1.1 percentage points and stood at 71.6% for January.
The board of MIA approved the financial statements for the year ended December 31, 2017. The company's profits for 2017 increased from €21 million to €24.2 million. Revenues were up to €82.4 million from €73.1 million in the previous year. The Board is recommending the payment of a final net dividend of €0.07 per share on all shares settled on April 6, 2018, which will be up for approval at the company's AGM which is scheduled for May 8, 2018.
MIA declared that it has been granted approval by the Planning Authority for its master plan to invest €100 million into the development of the airport terminal infrastructure and the surrounding airport campus. This approval gives the company the green light to proceed to the planning stage of its investment programme, which will be executed in three major phases. In the last quarter of the year, it is envisaged that works on the construction of a multi-storey car park, providing more than 1,300 parking spaces, will commence. The master plan also provides for the construction of SkyParks II, which will house office and retail space, and a business hotel. Although the main short-term focus of the company is its Terminal Reconfiguration Project, it will also be actively working on drafting and finalising design plans for a lateral expansion of the terminal.
Simonds Farsons Cisk plc (SFC) shares extended their losing streak having declined for the fourth consecutive month, having slipped by 6.7% as 68,586 shares changed hands over 22 trades, closing €0.50 lower at €7. SFC's spin-off Trident Estates plc shares added to the previous month's 23.4% rally, having appreciated by 25% across 88 deals of 279,448 shares, to close €0.38 higher at €1.91.
The telecommunications services provider GO plc extended January's decrease of 0.8%, having declined by 0.6% over 50 transactions of 107,762 shares, closing at €3.50. The company announced that its board is scheduled to meet on March 6, to consider and approve the company's audited financial statements for 2017, and to consider the declaration of a final dividend to be recommended to the company's AGM.
GO's spin-off Malta Properties Company plc partially erased the previous month's 7.3% rally, having dropped by 6.8% as 32 deals of 261,378 shares were negotiated, to close €0.035 lower at €0.48.
MIDI plc shares were the only non-movers in the property management sector having closed unchanged at €0.34 across 30 trades of 982,906 shares.
In the same sector, Malita Investments plc shares partially erased January's 3.1% gain having edged 1.8% as 55 transactions of 359,350 shares were executed, closing at €0.83. Plaza Centres plc shares extended the previous month's 6.4% decline, having decreased by 1% across 24 deals of 220,450 shares, to close at €1.01. Meanwhile, Tigne Mall plc shares added to January's 3.6% loss, having slid by 3.8% over three trades of 6,000 shares, closing €0.04 lower at €1.01.
The supermarkets and retail owner PG plc recorded a decline in its share price for the fourth consecutive month having slid by 2.9% as 130,019 shares changed ownership over 38 transactions, to close €0.04 lower at €1.35. The board of PG announced that its recently incorporated fully-owned subsidiary, PG Developments Limited, acquired the property in Qormi Road, Marsa, commonly known as the United Macaroni Factory. The full consideration for the 3,200 square metre property was €3.5 million, of which €1 million was paid on signing the deed of sale, while the remaining balance of €2.5million shall be paid over 30 months from the date of the deed of sale. The company intends to develop the site into commercial premises, comprising principally of office space for rent. Development applications are expected to be submitted to the Planning Authority in the near future.
Grand Harbour Marina plc shares added to the previous month's 0.4% fall, having decreased by €0.03 or 4% across three deals of 40,947 shares, closing at €0.73.
International Hotels Investments plc shares partially reversed January's 2.1% gain having edged 1.6% as 163,912 shares exchanged hands over 16 trades, to close at €0.63.
In the I.T. sector, RS2 Software plc shares added to January's 5.8% drop, having stumbled by 11% across 83 transactions of 302,760 shares, closing €0.16 lower at €1.29. Meanwhile, Loqus Holdings plc shares fully recouped its previous 37.1% loss having rallied by 70.9% as one trade of 3,700 shares was executed, to close €0.078 higher at €0.188.
MaltaPost plc shares partially recouped January's 9.9% loss, having advanced by €0.04 or 2.1% as seven deals of 9,541 shares were negotiated, closing at €1.95.
The oil and gas services logistics operator Medserv plc recorded a loss for the second consecutive month, having slipped by 1.6%, adding to January's 2.3% decline. The equity witnessed a turnover of 93,370 spread over 21 trades and traded between a 10-week low of €1.12 and a €1.21 monthly high - at which it closed.
In the corporate bond market 54 issues were active of which 30 increased and 15 fell. Turnover fell to €6.9 million, from January's €7.4 million. The 5.5% Mediterranean Investments Holding plc Unsecured € 2020 was the best performer having advanced by 2.9%, to close at €106.
The 5.1% 6PM Holdings plc Unsecured € 2025 headed the list of fallers having stumbled by 6.6%, closing at €99.50. This negative performance followed the approval and publication of the 2017 Interim Financial Statements of 6PM which had long been awaited. Trading recommenced following the Listing Authority announcement that sufficient information has now been made public by the company for listing and trading of its securities. Therefore, as from February 12, 2018 the suspension of listing and trading in the bonds was terminated. Loss after taxation amounted to £4.6 million for the period between January 1, 2017 and June 30, 2017, compared to a loss of £1.3 million registered in the corresponding period in 2016.
Negative sentiment prevailed in the sovereign debt market as all 26 active issues registered a decrease, with the 4.3% MGS 2033 (I) registering the highest loss of 1.9%, closing at €131.45. Turnover declined to €12.9 million from the previous month's €18.8 million and the 2.1% MGS 2039 (I) was the most liquid issue having witnessed a turnover of €2.4 million, to close 1% lower at €101.
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]