Index maintains positive stance

The MSE Index increased by a further 0.291 per cent in July, to close at 4,711.035 points. Activity was spread across 21 equities of which nine gained ground, 10 fell and two closed unchanged. Turnover amounted to €7.6 million.

Plaza Centres plc shares were the best performers having rallied by €0.149 or 14.9 per cent as 221,300 shares changed ownership over 21 trades, to close at €1.149. The Board of Directors of the company approved the Group’s Unaudited Financial Statements for the six months ended June 30, 2017. The Group reported a profit before tax of €798,860, a decrease of 2.5 per cent when compared to the same period last year, mainly due to the increase in finance costs attributed to the loan and bond interest to finance the investment in Tigne Place.

Meanwhile, profit after tax increased by 16.4 per cent as a result of the fact that the company is benefitting from a better tax regime. Moreover, earnings per share (EPS) increased from €0.018 in the first six months of 2016 to €0.021 in the same period this year. In line with the Group’s policy, the Board of Directors did not propose the payment of an interim dividend.

Tigne Mall plc shares depreciated by one per cent as 11 transactions of 30,000 shares were struck, closing at €0.97. The Board of Directors of the company is scheduled to meet on August 10, 2017 to consider and approve the condensed interim financial statements for the half year ending June 30, 2017 and to consider the declaration of interim dividend.

In the same sector, Malta

Properties Company plc

shares fell by 3.6 per cent across 33 trades of 83,570 shares, to close at €0.51. Similarly, MIDI plc shares decreased by a further 1.6 per cent over 15 deals of 184,050 shares, closing at €0.305.

On the other hand, Malita Investments plc shares oscillated between a monthly high of €0.765 and a low of €0.68, to ultimately close 3.4 per cent higher at its monthly high. The equity was active on 36 transactions of 476,850 shares.

Bank of Valletta plc (BOV)

shares fully erased June’s gain having declined by 1.4 per cent in July. The banking equity witnessed 243 trades of 616,006 shares, to close €0.03 lower at €2.15 - a five-month low. On July 27, 2017 shareholders of BOV approved two important extraordinary resolutions during an Extraordinary General Meeting. The shareholders approved that the existing Memorandum and Articles of Association be revoked and substituted by a new one; and that the authorised share capital of the company be increased from €500 million to €1,000 million, subject to regulatory approval. The shareholders also approved two ordinary resolutions that the aggregate emoluments that may be paid to the Directors of the Company in any financial year shall be up to a maximum of €450,000; and that the Board of Directors be duly authorised and empowered to issue new shares of the Company up to the prescribed amount, as defined in the Articles of Associ- ation, for a period of five years from the date of this resolution.

During the meeting the Chairman, Mr Taddeo Scerri, announced that the Bank is planning to strengthen its share capital by issuing €150 million in new share capital over a period of 18 months. He added that as a domestically important bank with a significant impact on local financial stability, the Bank must have greater capacity to absorb higher risks than smaller providers. Therefore, additional capital buffers are required to enable the Bank to undertake new investment, sustain new lending or distribute dividends to shareholders. The Bank intends to make a Rights Issue to existing shareholders, and provide the opportunity to existing shareholders to acquire new shares in the Bank, and will only be opened to the general public, if any of the new issued share capital is not subscribed to by the existing shareholders.

FIMBank plc (FIMBank)

shares registered a decline for the fifth consecutive month having decreased by 7.8 per cent in July. The trade finance bank’s shares were negotiated across 13 transactions of 110,504 shares, closing $0.06 lower at $0.71 - a 16month low. FIMBank reported that the process of strengthening operations is ongoing and is in line with plans and expectations. The Board acknowledges positive performance and results. Cost control measures have had positive results and a disciplined business management strategy has allowed FIMBank to improve its efficiency as well as its asset quality. The first half of 2017 has been characterised by material and positive results on recovery of bad debts. Management has successfully recovered on exposures that had impacted previous years’ performance.

Moreover, recently, the MFSA confirmed the revoking of administrative measures imposed on FIMBank in 2016. The market conditions have yet to improve and regulatory oversight, especially on capital ratios, has become stronger, which is being successfully addressed by the management and board. In view of such conditions, the Board of Directors of FIMBank confirmed a prudent business model and approach.

In another announcement, the bank reported that the Board of Directors will be meeting on August 9, 2017 to consider and approve the consolidated financial statements for the half-year ended June 30, 2017; and to consider the payment of an interim dividend, if any.

HSBC Bank Malta plc shares swayed between a monthly high of €2.08 and a low of €2.02, however closed unchanged at €2.05 as 83 trades of 222,907 shares were executed. The Group registered a profit before tax of €25.9 million for the six months ended June 30, 2017, compared to a profit of €41.3 million registered in the comparable period of 2016. On an adjusted basis, after excluding the €10.8 million investment gain on the sale of Visa Europe last year, profit was down by 15 per cent. Net interest income for the period under review amounted to €60.3 million – down by 5.6 per cent from 2016.

Earnings per share (EPS) decreased from €0.075 to €0.047. A net interim dividend of €0.03 net per share will be paid on September 11, 2017 to shareholders on the company’s share register as at August 10, 2017 – in-line with the current dividend pay-out ratio of 65 per cent.

Lombard Bank Malta plc

shares recouped June’s loss having advanced by 1.1 per cent across five trades of 8,000 shares, closing at €2.39. Conversely, the bank’s subsidiary MaltaPost plc registered a 0.5 per cent decline in its share price. The postal services company’s shares were active on three trades of a mere 3,066 shares, to close at €2.019.

Malta International Airport plc (MIA) shares appreciated by

€0.085 or 2.1 per cent across 108 trades of 557,253 shares, to close at €4.20. The local airport operator announced that it welcomed 578,827 passengers in June, translating into a growth of 17.5 per cent over the same month last year. June’s growth partly resulted from MIA’s recently launched summer schedule, which is its busiest yet, featuring an average of 130 flights a day.

The airport’s top five markets in June were the United Kingdom, Italy, Germany, France, and Spain. These markets all registered varying degrees of growth, with the Spanish market experiencing the most marked increase, at 38.2 per cent. June’s numbers bring the total number of passengers for the first half of the year up to 2,639,712.

Passenger movements on the first half of the year registered an increase of 20.3 per cent as traffic registered new record figures on each month. This result was achieved following a 19.3 per cent growth in seat capacity whereas seat load factor improved by 0.4 percentage points to reach an overall 80.4 per cent.

The total revenue for the period from January to June increased by 16.7 per cent from €31.4 million in 2016 to €36.7 million in 2017. Turnover from the airport segment increased by 19.1 per cent to €25.9 million, whilst that from the Retail and Property segment increased by 10.7 per cent to €10.5 million. Net profit increased by €2.8 million or 34.8 per cent to €11 million.

The Directors have approved a net interim dividend of €0.03 per share on all shares settled as at close of business on August 23, 2017 and payable by no later than September 22, 2017.

Simonds Farsons Cisk plc

shares recorded an increase for the fourth consecutive month having appreciated by €0.16 or 2.1 per cent over 10 deals of 10,986 shares, closing at yet another all-time high of €7.76.

Santumas Shareholders plc

shares soared by 7.5 per cent across five trades of 10,888 shares, to close €0.149 higher at €2.149. Likewise, RS2 Software plc shares advanced by a further €0.125 or 7.3 per cent as 540,687 shares changed hands over 143 transactions, closing at €1.845.

Medserv plc shares decreased by 3.9 per cent over 12 deals of 45,751 shares, to close €0.05 lower at €1.25. The company reported that Eni Cyprus Ltd has extended the contract for provision of operational base support services in Cyprus for another two years. The contract extension includes the provision of dedicated facilities and services in the port of Limassol while still maintaining the base facilities in the port of Larnaca.

The company has secured the areas in the Limassol port and is in the process of setting up the facility to meet the stipulated timelines for the upcoming exploratory drilling programme. During the past two years Eni has increased its exploration portfolio in the strategic area of Eastern Mediterranean Sea.

GO plc shares fully recouped June’s minimal loss having increased by €0.079 or 2.3 per cent as 59 trades of 141,719 shares were executed, closing at €3.549. Conversely,

International Hotel Investments plc

shares slipped by a minimal 0.2 per cent in July after having increased by three per cent in June. The hoteliers’ equity was active on 39 deals of 330,744 shares, to close at €0.619.

PG plc shares rose by a further €0.04 or 3.1 per cent over 41 transactions of 122,210 shares, to close at €1.34. On the other hand,

Grand Harbour Marina plc

shares shed 8.5 per cent of their share price as five trades of 18,300 shares were struck, closing €0.076 lower at €0.82.

GlobalCapital plc stumbled by 11.8 per cent across a high turnover of over 1.5 million shares spread across 18 deals. The finance equity closed €0.04 lower at €0.30.

The other non-movers for the month were Mapfre Middlesea plc (Mapfre) shares having closed unchanged at €1.90 despite having reached a monthly high of €1.94 and a low of €1.75. The equity witnessed 36 trades of 93,958 shares.

Mapfre announced that the Board of Directors approved the unaudited financial statements of the Group for the financial half year ended June 30, 2017. The Group’s profit before tax for the first six months amounted to €7.02 million, compared to €5.67 million registered during the comparative period last year. The increase in profit was derived from improved non-life business and long term business results when compared to the previous year.

The company’s non-life business has registered a marked recovery in results as actions taken by management to address the price deficiency in motor line business are showing the desired progress in returning this line of business to being profitable again. The improvement in the technical results was augmented by an increase in investment income, derived particularly from the property investment held by the company. In line with company policy, the Board of Directors did not propose the payment of an interim dividend.

In the corporate bond market turnover amounted to €6.8 million spread across 48 issues of which 21 declined, 13 rose and 14 closed unchanged. The 5%

Mediterranean Investments Holding plc Unsecured € 2022 headed the list of

gainers having increased by 3.3 per cent, to close at €103.30, while the 6% Pender-

gardens Developments plc Secured € 2022 Series II was the worst performer

having slipped by four per cent, to close at €109.

Simonds Farsons Cisk plc (SFC)

announced that it will be redeeming the €15,000,000 6% SFC Bonds 2017-2020 on 13 September 2017 in accordance with the terms of the prospectus dated 10 May 2010. Following regulatory approval received on July 31, 2017, the Company announces that it will be issuing

€20,000,000 3.5% Simonds Farsons Cisk plc Unsecured Bonds 2027 with

a nominal value of €100 per Bond, issued at par. The Company will be granting holders of the existing SFC Bonds as at August 01, 2017 (that is, up to and including trading activity on 28 July 2017 – (the “Cut-Off Date”) preference to subscribe for new SFC Bonds subject to a minimum amount of €2,000, by surrendering the corresponding nominal value of the Existing SFC Bonds. Subject to availability, holders of existing SFC Bonds will also have the opportunity to subscribe for new SFC Bonds in excess of their holding of existing SFC Bonds. Should there be any balance left, this will be offered through an Intermediaries’ Offer.

In the case where holders of existing SFC Bonds, as at Cut-off Date, do not wish to exchange their investment, or wish to exchange only part of their investment for the new SFC Bonds, they will receive, as the case may be, either the principal sum or the remaining balance of the principal of their holding on September 13, 2017. Interest due on the existing SFC Bonds will be paid on the September 13, 2017.

In the sovereign debt market 28 issues were active of which 22 fell, five appreciated and one closed unchanged as turnover totalled €33.9 million. The 4.3% MGS 2022 (II) was the most liquid issue having witnessed a turnover of €9.2 mil- lion, to close 0.1 per cent higher at €119.39.