MSE Index down by 2.1% in Q3

The Malta Stock Exchange (MSE) index registered a 0.6

per cent gain in September, closing at 4,466.623 points resulting in a 2.1 per cent decline for the third quarter of 2016. Total turnover in the equity market in September amounted to €5m spread across 19 equities of which ten gained ground, seven declined and two closed unchanged.

Tigne Mall plc shares headed the list of gainers having advanced by 8.7 per cent as 20 deals of 331,600 shares were struck, closing €0.085 higher at €1.065. Similarly, Simonds Farsons Cisk plc shares rallied by a significant €0.55 or 8.5 per cent over 16 transactions of 52,946 shares, to close at a record high of €7.05.

The food and beverage company reported that the group registered a profit before tax of €5.8m for the six months ended July 31, 2016, compared to €4.8m in 2015. Revenue for the period rose by €1.6m to €45.8m - an increase of 3.6 per cent over the same period in 2015. Earnings per share decreased from €0.211 to €0.185, as a result of the change in the income from discontinued operations from €1.8m in 2015 to €5k for the period under review.

The company’s solid performance can be attributed mainly to Malta’s strong economic growth, increased tourist arrivals and expenditures as well as improvements in the performance of franchised food businesses and growth in the food importation subsidiary. An interim net dividend of €0.0333 per share is to be paid on October 19, 2016 to shareholders on the register of members as at October 5, 2016.

On a negative note, RS2 Software plc shares were the main laggards having stumbled by 11.3 per cent over 116 deals worth €881,526. The I.T. equity closed €0.209 lower at €1.64 – registering a 21.9 per cent drop in the third quarter of the year. Meanwhile, Loqus Holdings plc shares edged 0.7 per cent higher as a sole trade of a mere 356 shares was struck at €0.136.

In the banking sector, Bank of Valletta plc shares oscillated between a monthly high of €2.265 and a low of €2.249, to ultimately close 0.44 per cent higher at €2.26. The equity was active on 133 transactions of 403,319 shares. The bank announced that the forthcoming Annual General Meeting (AGM) will be held on December 16, 2016. Further information relating to the AGM will be announced at a later date.

HSBC Bank Malta plc shares fully recouped August’s decline of 2.4 per cent, having increased by 3.8 per cent in September as 241,801 shares changed ownership, to close €0.059 higher at €1.62. Conversely, Lombard Bank Malta plc shares added on to the previous month’s losses having declined by €0.10 or 4.6 per cent over a sole transaction of 1,108 shares, closing at €2.10.

FIMBank plc shares fell by 4.6 per cent over 16 trades of 303,017 shares, closing at $0.93. The trade finance bank thus registered a 1.1 per cent gain in the third quarter of 2016.

GO plc shares gained a further 3.9 per cent as 36 deals of 79,415 shares were executed, to close €0.12 higher at €3.22. Likewise, Malta Properties Company plc shares advanced by 3.7 per cent over 52 transactions of 603,852 shares, closing at €0.56.

Malta International Airport plc shares edged 0.5 per cent higher as 46 trades of 166,857 shares were executed, to close at €4.26. The local airport operator reported the highest monthly passenger movements for the month of August – up by 2.3 per cent over the same month last year, primarily due to an increase in seat capacity. The top drivers of passenger traffic were the UK and Italy, which were also listed among the airport’s top five markets together with Germany, France and Spain. However, the most significant growth year-onyear was reported for Poland and Spain.

International Hotel Investments plc (IHI) shares

recouped 3.1 per cent across nine deals of 31,871 shares, closing at €0.635. The hoteliers’ company announced its acquisition of the remaining 80 per cent shareholding in QPM Limited: a multidisciplinary consultancy company providing services in architecture, civil and structural engineering, integrated building services, interior design, project management, cost management and sustainability management. The Board of IHI is confident that the full ownership of QPM Limited will enable the company to achieve its strategic objective to develop and operate properties worldwide.

Plaza Centres shares stumbled by 4.3 per cent as six trades of 73,250 shares were struck, to close €0.046 lower at €1.10. The company announced that on September 27, 2016 it signed the final deed to purchase the property named ‘Tigne Place’ consisting of office and commercial space along with related car park facilities.

GlobalCapital shares slipped by 1.8 per cent over three deals of 18,244 shares, closing at €0.49.

Mapfre Middlesea plc shares closed the month unchanged at €2.10, despite reaching a monthly low of €2.07. The equity was active on three trades of a scant 580 shares. The company announced that the Malta Financial Services Authority approved the intra-group merger between Mapfre International SA, the major shareholder in Mapfre Middlesea plc and Mapfre America SA. The latter surviving entity will change its name to Mapfre International SA in the coming months.

The other non-moving equity last month was Malita Investments plc having closed unchanged at €0.87. A total of 15 deals of 119,900 shares were negotiated.

Medserv plc shares appreciated by €0.05 or 3.3 per cent over 47 transactions of 269,365

plc plc

shares, closing at €1.55. On the other hand, Grand Harbour Marina plc shares declined by 2.3 per cent across three deals of 6,692 shares, to close at €0.87.

MIDI plc registered a decline in its share price for the fifth consecutive month. The equity fell by 0.3 per cent across two trades of 5,027 shares, closing at €0.349.

In the corporate bond market activity was spread across 47 issues of which 18 advanced, 17 declined and 12 closed unchanged. Turnover amounted to €4.6m. The recently issued

3.9% Plaza Centres plc Unsecured € 2026 headed the list of

gainers having advanced by four per cent, to close at €104, while the 5.3% Mariner Finance plc Unsecured € 2024 was the worst performer having declined by 5.3 per cent, to close at €104.10.

During the month three new corporate bonds were issued, all of which were fully subscribed. Namely, Mediterranean Mar-

itime Hub Finance

announced the issuance of €15m Unsecured Bonds maturing in 2026. The bonds will offer a coupon of 4.8% p.a. and were issued at €100 per bond.

Dizz also announced the issuance of €8m Unsecured Bonds maturing in 2026. The bonds will offer a coupon of 5% p.a. and were issued at €100 per bond. Furthermore, GAP Group plc announced the issuance of €40m

Finance plc plc

Secured Bonds maturing in 2023. The bonds will offer a coupon of 4.25% p.a. and were issued at €100 per bond.

In the sovereign debt market turnover totalled €52.5m spread across 27 issues of which 17 rallied and 10 declined marginally. The 2.4% MGS 2041 (I) r was the most liquid issue having witnessed a turnover of €30m. The long-dated issue was the best performer for the month having appreciated by 2.2 per cent, to close at €108.60.