Mapfre and RS2 shares register double-digit gains in March

The MSE Equity Total Return Index extended February’s

0.301% increase, having advanced by 0.162%, to close March at 8,677.545 points. Turnover amounted to €8.7m and was spread across 23 equities of which 14 lost ground and five rose.

Mapfre Middlesea plc shares were the best performers having rallied by €0.25 or 13.5% as 154,317 shares changed ownership across 49 deals, closing at an 11-month high of €2.10. The company announced that the Group’s profit after tax for 2017 reached €13.5m, translating to a considerable 34% increase over the previous year’s figure of €8.9m. The company registered a 3.2% increase in turnover over the previous year, to reach €61.9m in gross premium. Although investment income was marginally lower than the previous year, it was driven by improved property rental income and fair value movements, particularly on property investments. The Group’s results include the consolidated results of Mapfre MSV Life’s profit before tax of €12.3m up from €11.6m. The company also managed to maintain a strong regulatory solvency position with regards to its balance sheet. The Board recommended the payment of a final net dividend of €0.10543 per share, to be paid on 18 May to shareholders on the company’s share register as at 27 April.

RS2 shares almost fully recouped February’s 11% loss, having appreciated by 10.9% over 77 trades of 290,295 shares, closing €0.14 higher at €1.43.

In the same sector, Holdings plc shares partially erased the previous month’s 70.9% rally, having declined by 28.2% as 7,500 changed hands over two deals, to close €0.053 lower at €0.135.

Software plc Loqus Bank of Valletta plc (BOV)

shares fully reversed February’s 0.6% increase, having declined by 1.1% across the highest turnover of 1.7 million shares spread across 322 trades, closing at €1.80. In March, the board of directors had approved the audited financial statements for the 15-month period from 1 October 2016 to 31 December 2017. The Group’s profit before tax for the period reached €174.7m, compared to €145.9m for the 12-month to September 2016. In the previous financial year the bank had reported a oneoff gain of €27.5m on the Visa transaction. Net interest income was up from €148.8m to €182.9m for the period, while income from net fees and commission was also up, to €86.3m from €66.1m. This was in line with the Group’s strategy to focus on alternative revenue streams, in order to alleviate the pressures on net interest income and lower exchange earnings.

In view of the strong demand for the rights issue held last year, the bank will offer shareholders the right to elect to receive the dividend either in cash or by the issue of new shares. The price of the new shares to be issued under the Scrip Dividend Programme (Attribution Price) will be established and communicated on 12 April. The Attribution Price will be calculated using the average of the three-trade weighted average prices based on trading effected on 9, 10 and 11 April and a dis- count of 5% shall be applied to the said average of the three prices. Shareholders on the bank’s share register at the Central Securities Depository of the MSE, as at the close of business on 10 April, will receive notice of the AGM together with the financial statements for the financial period ended 31 December 2017. The final net dividend of €0.052 per share, if approved at the AGM, will be paid on 18 May to the shareholders on the bank’s share register at the Central Securities Depository of the MSE as at the close of business on 10 April.

BOV announced that the Board was advised by UniCredit S.p.A. that subject to regulatory approval, it intends to dispose of its total shareholding in the bank to an investor that has already been identified. UniCredit S.p.A. currently holds just over 10% of the issued shareholding of the bank.

Meanwhile, BOV issued another announcement regarding the legal proceedings which were instituted against the bank in Italy, in which the plaintiffs are requesting the bank to pay €363m as compensation for the loss registered from the shares of a company which had been settled on trust with the bank in 2009. Although the case is still at its preliminary stage, the Italian Tribunal has issued a precautionary warrant for €363m against the bank. The Board believes that it has a strong case both on the merits and in appealing the precautionary warrant and is firmly rebutting the claims instituted against it before the Italian Tribunal. At the same time, the bank is keeping its Regulators continuously updated on developments relating to this case. The bank added that it will continue to keep this matter under review and take such measures to ensure that its operations are not adversely affected.

Earlier in the month, the bank announced that after taking legal advice, and following careful consideration, the Board of the bank and BOV Asset Management Limited have filed an appeal before the Court of Appeal (Inferior Jurisdiction) from the decision given by the Arbiter for Financial Services on 23 February, in relation to several La Valette Multi Manager Property Fund claims.

HSBC Bank Malta plc shares partially erased February’s 9.6% gain, having decreased by 4.6% as 116 transactions of 669,140 shares were executed, closing €0.09 lower at €1.86.

FIMBank plc shares registered a decline for the third consecutive month having slipped by 2.4% across 16 trades of 80,516 shares, to close at $0.605. FIMBank published a preliminary statement of the Group’s results for 2017 which showed a 43.98% increase in profit for 2017 over 2016. This amounts to a profit figure of $7.7m, compared to a positively restated profit of $5.4m for the previous year. Operating income before net impairment increased by 12% from $46.1m to $51.7m, backed by a rise in net interest income of $3m, and also a $3.7m improvement in net fee income. The Board will not be recommending the payment of a dividend to the AGM scheduled for 9 May.

Meanwhile, the trade finance bank announced that it has been granted approval by the Listing Authority for the Prospectus submitted and has received authorisation for the admissibility to listing on the official list of the MSE of up to 209,687,428 new ordinary shares in the company having a nominal value of $0.50 which will be issued as a result of a rights issue to the shareholders on the register of the company at the Central Securities Depository of the MSE as at 22 March. Such shareholders shall be entitled to subscribe to two new ordinary shares for every three ordinary shares in their possession at the record date at a subscription price of $0.55. If subscribed to in full at the offer price, the rights issue will raise gross proceeds of $115,328,085. Any lapsed rights from the rights issue will be offered to financial intermediaries during an intermediaries offer. Furthermore, United Gulf Holding Company B.S.C., (UGH) has, by means of an underwriting agreement, undertaken in favour of the bank to subscribe to such number of new ordinary shares under the rights issue not subscribed to during the intermediaries offer. The obligation of UGH under the underwriting agreement is limited to a maximum value of $105,000,000.

Lombard Bank Malta plc (Lombard) shares closed

unchanged at €2.40, despite having reached a monthly high of €2.42 and a low of €2. The banking equity was active on seven transactions of 10,271 shares. The bank announced a rise in the Group’s profit after tax of 7%, from €5.3m to €5.7m. Subsequently, earnings per share also increased to €0.116 from €0.107. Net interest income rose by 9% to €15.43m, as a result of increased consumer lending and the bank’s treasury activity. Net fee and commission income also improved by 9% as a result of a higher volume in transaction banking. Postal sales and other revenues experienced a rise of 40% over last year, to €37.4m. A net dividend of €0.026 per share will be distributed on 4 May to all shareholders on the register of shareholders as at 27 March.

The bank also announced that the National Development and Social Fund of Malta has agreed to acquire a 49.01% stake in the bank from Cyprus Popular Bank Public Co. Ltd, subject to approval from the relevant authorities.

GlobalCapital plc shares fell by €0.03 or 7.9% across two deals of 1,010 shares, closing at €0.35. The insurance and investments services provider announced that it has submitted a binding offer to the Special Administrator of Cyprus Popular Bank Public Co. Ltd for the purchase of its 49.01% stake in Lombard, subject to all necessary regulatory and corporate approvals. Global Capital Life Insurance Ltd, a fully-owned subsidiary of Global Capital plc, is already the second largest shareholder of Lombard, after the Cyprus Popular Bank with a 5.54% stake. In the announcement, the company said that this offer is supported financially by York Capital, a leading private equity fund. However, various local media sources reported that the director of York Capital has since denied that such an agreement had been reached by the time of the announcement. Thereafter, the company issued an announcement confirming that its binding offer for the 49% stake in Lombard still stands.

Furthermore, the company announced that it intends to submit an application to the Listing Authority in April requesting the admissibility to listing of new ordinary shares pursuant to a rights issue. If fully subscribed, the proposed rights issue shall raise a total amount of approximately €6m, to be used to strengthen the capital levels of the company in the context of the evolving business and regulatory environment.

Malta International Airport plc shares partially reversed February’s 1.7% increase, having declined by €0.04 or 0.8% over 75 trades of 199,224 shares, to close at €4.90. The Airports Council International announced that the airport has claimed the second place in Europe in its Airport Service Quality awards.

The local airport operator published its traffic results for February showing positive changes in passenger movements as traffic for the month grew by a significant 18% over the previous year. This growth was in line with increases of 14% in aircraft movements and 15.5% in seat capacity. The top contributors were the United Kingdom, Italy, Germany, Belgium and France which account for 71% of the total passenger movements recorded.

The telecommunications services provider GO plc‘ s shares closed March unchanged at €3.50 as 61 transactions of 271,586 shares were negotiated. Profit for the Group for 2017 fell by 11%, from €20.3m to €18m. Consequently, earnings per share experienced a similar drop of 10.3% to €0.165. The Board resolved to recommend a final net dividend of €0.13 net of taxation per share, to be paid on 16 May to all shareholders on the company’s register as at 13 April. The company also announced that the AGM will be held on 14 May 14.

Further to GO’s announcement on 28 January 2016 whereby the company announced that its fullyowned subsidiary, GO Data Centre Services Limited, had completed the acquisition of 51% of the issued share capital of Kinetix IT Solutions Limited, the company announced that it exercised its option to acquire the remaining 49% of the issued share capital of Kinetix through which it will become the sole shareholder of Kinetix.

Simonds Farsons Cisk plc (SFC) shares stayed faithful to

their recent losing streak, having registered a decrease for the fifth consecutive month. The food and beverage supplier’s shares fell by 0.7% across 25 deals of 19,754 shares, closing €0.05 lower at €6.95.

SFC‘s spin-off plc shares fell by a minimal 0.5%, after having rallied by 24.8% in February. The equity was active on 18 trades of 26,684 shares and closed at €1.90.

Trident Estates

Malta Properties Company plc shares extended the previous month’s 6.8% decline, having slipped by 2.1% as 23 transactions of 129,017 shares were concluded, closing at €0.47. The company announced that the Group’s profit before tax was €6.1m, compared to €3.5m in 2016. Operating profit however, declined to €1.8m from the €2.5m registered in the previous year. An 84% increase in administrative expenses was partially responsible for this decline as it did not result in a parallel rise in rental income, which was in fact marginally lower at €3.1m. The increase in administrative expenses was expected given that the company is undergoing growth in its operations. The decline was offset by a positive adjustment arising from the fair valuation of property of just under €5m, compared to the previous year’s figure of €1.7m. Consequently, the earnings per share figure for 2017 was €0.05, significantly higher than the €0.03 of 2016. The Board recommended to the AGM that no dividend will be paid. In sector, Malita

shares sagged by €0.03 or 3.6% as 62 deals of 785,288 shares were negotiated, to close at a 15-week low of €0.80. The company reported that profit for the year had more than doubled between 2016 and 2017, from €6.4m to €13m. This increase was largely due to a positive change in fair value of investment property the same

Investments plc

of €16.7m, which figure stood at €3m in the previous year. As a result, earnings per share also doubled from €0.0434 in 2016, to €0.0877 in 2017. Subject to approval at the Annual General Meeting, a net dividend of €0.01853 per share shall be paid on 4 May to all shareholders on the register as at 28 March.

Midi plc shares increased by 1.8% over 21 transactions of 598,422 shares, closing at €0.346. The company announced that the previously announced guardianship deed with the Manoel Island Foundation and the Gzira Local Council in respect of Manoel Island is now in effect. The development shall commence once the necessary planning approvals of the Masterplan are received. The terms of the agreement bind Midi to work in line with certain commitments governing the Manoel Island Public Park, the Foreshore, the swimming zones, Fort Manoel and building heights on the island.

The Board is scheduled to meet on 23 April to consider and approve the audited financial statements for 2017. The Board shall also consider the declaration of dividend to be recommended to the AGM, to be held on 27 June.

Plaza Centres plc shares fully erased February’s 1% loss, having appreciated by €0.05 or 5%, to close at €1.06. The shopping mall’s equity witnessed 18 trades of 154,310 shares. The Group’s profit after tax for 2017 increased to €1.3m, which is in line with the previous year’s profit figure. Operating profit after depreciation however was 15.35% higher at €2.2m. The Group registered a 20% increase in revenue over the previous year, reaching €3.3m. Operating costs were up by over 30% to €1.1m in 2017, due to higher administrative, marketing and maintenance costs. This is the first time that the Group’s results include a full 12 months contribution from Tigne Place Limited. The directors recommend the payment of a final net dividend of €831,115, equivalent to €0.0294 per share, and if approved at the AGM on 30 May, will be paid on 6 June to shareholders on the Group’s share register as at 30 April.

Tigne Mall plc shares registered a decline for the third consecutive month having slid by €0.06 or 5.9%. The equity was active across three deals of 42,000 shares and closed at a 30-week low of €0.95.

MaltaPost shares fully reversed February’s 2.1% increase, having edged by 4.6% as 44,562 shares changed ownership over 17 transactions, closing €0.09 lower at €1.86 – a 16-month low.

plc Santumas Shareholdings plc

shares traded flat at €1.50 on one trade of 10 shares.

The oil and gas logistics services provider Medserv plc‘ s shares fell for the third consecutive month having stumbled by 9.1% across 20 deals of 104,993 shares, to close €0.11 lower at a 15-week low of €1.10. The board of directors of the company is scheduled to meet on 27 April to consider and, if thought fit, approve the annual financial statements of the company for 2017. The company further announced that the forthcoming AGM shall be held on 28 May.

Grand Harbour Marina plc (GHM) shares traded unchanged

at €0.73 on one transaction of 9,400 shares. The company’s board of directors is scheduled to meet on 30 April to consider, and if deemed appropriate, approve the financial statements for 2017.

International Hotel Investments plc (IHI) shares extended

February’s 1.6% loss, having declined by a further 1.6%. The hotelier’s equity witnessed 13 trades of 32,606 shares and closed at €0.62. IHI announced that its subsidiary, Corinthia Hotels Limited, has signed a management agreement to operate a new luxury property opening in the heart of Bucharest, Romania. The Corinthia Grand Hotel du Boulevard Bucharest, originally built in 1867, shall undergo extensive refurbishment before reopening its doors on 1 December 2019 and will offer over 50 rooms and suites, exquisite dining options, a grand ballroom, boutique meeting spaces and luxury amenities.

The supermarkets and retail owner PG plc registered a minimal 0.7% gain in its share price. The equity was negotiated across 23 deals of 151,013 shares and closed at €1.36.

In the corporate bond market 49 issues were active of which gainers and losers tallied at 20. Turnover totaled to €5.7m. The 5% GlobalCapital plc Unsecured € 2021 headed the list of gainers having increased by 1.8%, to close at €99.75, while the 4.5% Grand Harbour Marina Unsecured € 2027 was the worst performer having decreased by 2.1%, closing at €104.75.

In the turnover amounted to €21.8m and was spread across 30 issues of which 20 gained ground and seven fell. The 2.1% MGS 2039 (I) was the most liquid issue having witnessed a turnover of €4.7m, to close 1% higher at €102.

sovereign debt market

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 on 2122 4410; email jesmond.mizzi@jesmondmizzi.com