Monthly Round up Report for September 2017

Index up by 1.016% in September

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.

Mall

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.

Mapfre

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.