Monthly Round up Re­port for Septem­ber 2017

In­dex up by 1.016% in Septem­ber

The Malta Business Weekly - - FRONT PAGE -

The MSE Re­turn In­dex Eq­uity

par­tially re­couped the pre­vi­ous month’s loss of 1.272% hav­ing ad­vanced by 1.016%. Turnover amounted to €7.8 mil­lion spread across 20 equities of which seven fell and nine gained ground.

Si­monds Far­sons Cisk plc (SFC) shares headed the list of gain­ers hav­ing ral­lied by 18.8% as 20 trades of 30,030 shares were struck, to close €1.50 higher at €9.50. The food and bev­er­age sup­plier has reg­is­tered an in­crease in its share price for six con­sec­u­tive months and has soared by 25% in Q3.

The board pre­sented the in­terim re­port for the six months ended July 31, 2017 on the last Wed­nes­day of Septem­ber. The group’s turnover ex­ceeded €49 mil­lion for the six months ended July 31, 2017 - an in­crease of 7.5%. Oper­at­ing profit in­creased by €387,000, whilst profit after tax from con­tin­u­ing op­er­a­tions, at €5.7 mil­lion, ex­ceeded last year’s fig­ure by 3.9%. Net profit mar­gins have been com­pressed by ex­tremely com­pet­i­tive mar­ket con­di­tions and a very tight labour mar­ket.

Earn­ings per share in­creased by 4.3% to €0.193. The board is rec­om­mend­ing a net in­terim div­i­dend of €1 mil­lion (2016: €1 mil­lion) in re­spect of the fi­nan­cial year end­ing Jan­uary 31, 2018 payable on October 18, 2017 to the or­di­nary share­hold­ers who will be on the reg­is­ter of mem­bers as at October 4, 2017. The in­terim div­i­dend will be paid out of tax­ex­empt prof­its and is equiv­a­lent to €0.0333 per share.

Fol­low­ing the ap­proval of the spin-off of the com­pany’s share­hold­ing in Tri­dent Es­tates Lim­ited granted dur­ing the An­nual Gen­eral Meet­ing (AGM) held on June 27, 2017 the al­lot­ment of Tri­dent Es­tates shares to ex­ist­ing share­hold­ers and their list­ing on the MSE are at an ad­vanced stage, and are ex­pected to be com­pleted by end of this year.

Med­serv plc shares were the worst per­form­ers hav­ing de­clined by 10.1% as 47,700 shares changed own­er­ship over eight deals, clos­ing €0.135 lower at €1.20 - reg­is­ter­ing a 7.7% de­crease in Q3.

In the bank­ing sec­tor, HSBC Bank Malta plc shares were the only gain­ers hav­ing in­creased by €0.035 or 1.8% across 60 trades of 186,997 shares, to close at €1.935.

Lom­bard Bank To­tal Malta SFC SFC plc

shares edged 6.8 per cent as nine trans­ac­tions of 33,110 shares were ex­e­cuted, clos­ing €0.16 lower at €2.20.

Bank of Val­letta plc shares slipped by 1.3% per cent over 171 deals of 425,025 shares, clos­ing at €2.07. The lo­cal bank has re­ceived reg­u­la­tory ap­proval from the Euro­pean Cen­tral Bank to in­crease its au­tho­rised share cap­i­tal from €500 mil­lion to €1,000 mil­lion. The in­crease in au­tho­rised share cap­i­tal was ap­proved by the bank’s share­hold­ers at the Ex­tra­or­di­nary Gen­eral Meet­ing held on July 27, 2017, sub­ject to reg­u­la­tory ap­proval.

FIMBank plc shares fell by 6.6% after hav­ing in­creased by 7% in Au­gust. The trade fi­nance bank’s shares were ac­tive on eight deals of 350,153 shares, clos­ing $0.05 lower at $0.71.

Malta In­ter­na­tional Air­port plc shares ap­pre­ci­ated by €0.29 or 7% as 95 trades of 480,551 shares were ne­go­ti­ated, to close at an 18month high of €4.46. Traf­fic move­ment to­talled to 693,537 pas­sen­gers in Au­gust, rep­re­sent­ing a growth of 14.8% - in line with an in­crease of 15% in seat ca­pac­ity. Mean­while, air­craft move­ments in­creased by 12.9% in Au­gust, as the top-five mar­kets re­mained the UK, Italy, Ger­many, France and Spain – ac­count­ing for more than 460,000 pas­sen­ger move­ments.

The con­glom­er­ate owner reg­is­tered a 7.1% in­crease in its share price in Septem­ber and a 15.4% rally in Q3. The eq­uity was ex­e­cuted over 57 deals of 216,262 shares, clos­ing at a record high of €1.50.

PG plc

In the prop­erty man­age­ment sec­tor, Malita In­vest­ments plc shares were the only ones to reg­is­ter a neg­a­tive per­for­mance hav­ing de­clined by 1.2% as 18 trades of 158,339 shares were ne­go­ti­ated, to close at €0.741. Plaza Cen­tres plc shares in­creased by 1%, after los­ing 9.5% in Au­gust. The eq­uity wit­nessed 15 trans­ac­tions of 106,900 shares, clos­ing at €1.05.

Tigne shares ad­vanced by €0.06 or 6.7% over a high turnover of €1.6 mil­lion spread across 18 deals of 1.7 mil­lion shares, to close at €0.96. Malta Prop­er­ties Com­pany plc shares in­creased by 1.8% over 16 trades of 46,160 shares, clos­ing at €0.519.


MIDI shares closed un­changed at €0.31 as 13 trades of 526,600 shares were struck.

plc plc

The telecom­mu­ni­ca­tions provider GO plc reg­is­tered a min­i­mal in­crease of 0.6% as 105,761 shares changed own­er­ship over 33 trans­ac­tions, clos­ing at €3.59 - up by 3.5% in Q3.

In­ter­na­tional Ho­tel In­vest­ments plc (IHI) shares recorded

a de­cline for the third month, hav­ing de­clined by 0.8%. The hote­liers’ eq­uity was ac­tive on 29 trades of 180,712 shares and os­cil­lated be­tween a monthly high of €0.61 and a low of €0.567, to ul­ti­mately close at €0.605. IHI has con­cluded a five-year con­tract with a ma­jor Euro­pean oil com­pany to lease 1,222 square me­tres at its Com­mer­cial Cen­tre in Tripoli, ad­ja­cent to the Corinthia Tripoli Ho­tel. The con­tract is worth just over €1 mil­lion an­nu­ally.

The in­vest­ment and life-in­sur­ance provider closed un­changed at €0.33, de­spite hav­ing reached a monthly high of €0.40. The eq­uity wit­nessed six deals of 60,850 shares and has de­clined by 2.9% in Q3.

Glob­alCap­i­tal plc

In the same sec­tor, Mid­dle­sea plc shares closed un­changed at €1.939 as 15 trans­ac­tions of 33,505 shares were ex­changed.


Also from the fi­nan­cial sec­tor,

San­tu­mas Share­hold­ings plc

shares in­creased by 2.3% as 183,812 shares changed own­er­ship over 3 deals, clos­ing at €2.19 - up by 9.5% in Q3.

The other non-movers were Mal­taPost plc shares hav­ing closed at €1.98. The postal ser­vices provider was ac­tive on 10 trades of 61,339 shares.

RS2 Soft­ware plc shares fell by a fur­ther 2.5% after reg­is­ter­ing a 3.5% de­cline in Au­gust. The I.T. ser­vices provider wit­nessed 43 trans­ac­tions of 267,309 shares, to close €0.045 lower at €1.735. In the 48 is­sues were ac­tive of which

ket cor­po­rate bond mar-

20 ad­vanced and 19 de­clined. Turnover to­talled to €6.1 mil­lion. The 4.35% SD Fi­nance plc Un­se­cured € 2027 was the most liq­uid is­sue hav­ing wit­nessed a turnover of €965,620, to close un­changed at €103.

Si­monds Far­sons Cisk plc

an­nounced that the bond is­sue of €20 mil­lion SFC 3.5%

was over­sub­scribed. The com­pany re­ceived a to­tal of 3,215 ap­pli­ca­tions for €49.3 mil­lion from hold­ers of the ma­tur­ing bonds - €15 mil­lion 6% SFC 2017-2020. Hold­ers of the ma­tur­ing bonds were given a guar­an­teed al­lo­ca­tion on sub­scrip­tion to the new SFC bonds by sur­ren­der­ing their re­spec­tive ma­tur­ing bonds and were given pref­er­ence for al­lo­ca­tion to any ad­di­tional new SFC bonds ap­plied for. The com­pany al­lot­ted 16.7% of the re­main­ing bal­ance of all such ap­pli­ca­tions.

cured Bonds 2027 Unse-

Mediter­ranean Bank plc is­sued €20 mil­lion in 5% Sub­or­di­nated Un­se­cured bonds due in 2027 is­sued in Euro and

Pounds Ster­ling. The net pro­ceeds from the bond will be used by the is­suer to meet part of its gen­eral fi­nanc­ing re­quire­ments, and will con­sti­tute Tier 2 cap­i­tal.

Sti­vala Group Fi­nance plc is­sued €45 mil­lion 4% se­cured bonds ma­tur­ing in 2027. The

net pro­ceeds from the bonds will be used to re-fi­nance out­stand­ing group fa­cil­i­ties and to fi­nance the ac­qui­si­tion and de­vel­op­ment of var­i­ous prop­er­ties. The group’s main busi­ness is the ac­qui­si­tion of real es­tate for long term in­vest­ment pur­poses, prin­ci­pally in the Gzira, Sliema and St Ju­lian’s ar­eas. Once ac­quired, the group is en­gaged in the de­vel­op­ment or re­de­vel­op­ment of prop­er­ties and their con­ver­sion into res­i­den­tial and com­mer­cial prop­er­ties. All real es­tate is re­tained by the group to gen­er­ate rental rev­enues, both from short let­ting and tourist ac­com­mo­da­tion as well as from long-term res­i­den­tial, of­fice and retail lets.

In the turnover amounted to €17.7 mil­lion spread across 29 is­sues of which 25 de­clined and three gained ground. The 1.4% MGS 2023 (III) was the only non­mover hav­ing traded flat at €105.50.

sov­er­eign debt mar­ket

On the last Thurs­day in Septem­ber, the al­lo­ca­tion for the re­cent 3% 62+ Malta Gov­ern­ment Sav­ings Bond 2022 was an­nounced by the Trea­sury. A to­tal of €107.20 mil­lion worth of ap­pli­ca­tions were re­ceived, out of which €70 mil­lion were al­lo­cated - €50mil­lion to­gether with the over­al­lot­ment op­tion of €20 mil­lion.

Ap­pli­ca­tions up to and in­clud­ing €5,000 in nom­i­nal terms have been met in full, while those above €5,000 in nom­i­nal terms shall re­ceive a min­i­mum of €5,000 nom­i­nal per ap­pli­cant plus an ad­di­tional 22% of the re­main­ing un­al­lo­cated bal­ance per ap­pli­cant, rounded up to the near­est €100.

The Trea­sury an­nounced that an­other op­por­tu­nity will arise for the ap­pli­cants of the 62+ Malta Gov­ern­ment Sav­ings Bond whose ap­pli­ca­tion lodged in Septem­ber ex­ceeded the amount of €5,000. These ap­pli­cants may par­tic­i­pate on a vol­un­tary ba­sis in a new

is­suance sched­uled for October 2017. In the com­ing days,

these ap­pli­cants shall re­ceive a let­ter ask­ing them to make a choice whereby in­stead of re­ceiv­ing a full re­fund of the amounts not al­lo­cated from the first is­suance, opt to use these un­al­lo­cated funds which are cur­rently held at the Trea­sury, to par­tic­i­pate in the sec­ond is­suance of the 62+ Malta Gov­ern­ment Sav­ings Bond. If the ap­pli­cants of the first is­suance whose ap­pli­ca­tions were not ac­cepted in full choose not to par­tic­i­pate in the sec­ond is­suance, they will be re­funded for the amount not al­lo­cated. Only ap­pli­cants who ap­plied for more than €5,000 in the first is­suance and new el­i­gi­ble ap­pli­cants who did not par­tic­i­pate in the Septem­ber 2017 is­suance can ap­ply. The same terms and con­di­tions of the first is­suance will ap­ply.

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