Weekly Report 5 October 2018 Issue No: 39/18

Transcription

1 Issue No: 39/18 Local Stock Market Report for the period 1 HIGHLIGHTS MSE Equity Price Index reaches 6-month high Prices of MGS continue to slide amid a global surge in bond yields RF Malta Corporate Bond Index halts 2- week positive streak MSE Equity Price Index reaches 6-month high The MSE Equity Price Index moved higher for the third consecutive week as it surged by 0.87% to a six-month high of 4, points. The positive performance was mainly driven by the notable increases in the share prices of GO, FIMBank, HSBC and MIA. In fact, the market capitalisation of all these four companies increased by around 20 million each during the past five days. In contrast, negative sentiment towards BOV persisted further whilst RS2 also closed the week in negative territory. Trading volumes dropped by 33.2% from last week to 1.83 million. GO plc trended higher for the fifth consecutive week as it added a further 5.5% to the 3.84 level after failing to hold on to a fresh twelve-year high of 3.86 during today s session. A total of 58,684 shares of GO changed hands this week. On Wednesday, the company announced that subject to shareholders approval, it will be seeking to dispose of up to 49% of its shareholding in BMIT Group through an initial public offering. In this respect, GO also added that through this sale, it will be seeking to raise up to 49 million. These proceeds are earmarked to deliver returns to shareholders. Further details are available here. FIMBank plc moved closer to its 2018 high of USD0.69 as it surged by 6.3% to the USD0.67 level on robust volumes totalling 505,368 shares. Also in the banking sector, HSBC Bank Malta plc climbed 3.4% to regain the 1.81 level across 63,042 shares. Malta International Airport plc ended the week 2.5% higher at the 6.20 level after on Tuesday it recorded a new all-time high of A total of 52,529 shares changed hands. On Friday, MIA announced the September traffic results revealing a 12.8% increase in passenger movements to a record of 706,814 passengers. The announcement also noted that during July, August and September, the airport operator registered 2.2 million passenger movements a record for this period and representing an 11.4% increase over the corresponding period last year. From January to September this year, MIA welcomed over 5.29 million passengers, representing an increase of 14.2% over the previous corresponding period. Further details are available here. Similarly, Simonds Farsons Cisk plc advanced by 0.6% to the 7.75 level after partially retreating from a fresh over eightmonth high of 7.80 that was recorded on Monday. A total of 8,210 shares traded. In contrast, Bank of Valletta plc extended last week s 2% decline with a further 3.4% drop to a new six-year low of 1.40 on high trading volumes totalling 324,790 shares having a total market value of 0.46 million. On Tuesday, BOV announced that it filed court appeals related to the recent decisions taken by Arbiter for Financial Services in relation to fifty new cases involving the La Valette Multi Manager Property Fund. RS2 Software plc shed 2.5% to the 1.15 level after partially recovering from a weekly low of 1.12 across a total of 72,409 shares. Loqus Holdings plc tumbled 40% to a new all-time low of albeit on trivial volumes. In the property segment, both MIDI plc and Malta Properties Company plc ended the week in negative territory. MIDI eased by 0.9% to the 0.56 level on just 4,260 shares whilst increased volatility in MPC forced the equity to move back to the 0.50 level (- 4.8%) on activity totalling 41,869 shares. On the other hand, the equities of four other property-related companies remained unchanged. Plaza Centres plc held on to its 2018 low of 1.00 across 100,000 shares. Malita Investments plc retained the 0.87 level on activity of 118,128 shares. Similarly, no changes were registered in the share prices of Trident Estates plc and Main Street Complex plc as both equities ended the week flat at 1.34 and respectively. Trading activity in both equities was minimal. Low volumes were also transacted in GlobalCapital plc and International Hotel Investments plc which retained the and levels respectively. PG plc stayed at its 2018 high of 1.40 across 30,485 shares. Weekly Market Report 1

2 Issue No: 39/18 Prices of MGS continue to slide amid a global surge in bond yields The RF MGS Index trended lower for the fourth consecutive week as it declined by a further 0.17% to a fresh four-year low of 1, points. Virtually all prices of Malta Government Stocks ( MGS ) moved lower this week amid a global sell-off in bonds, largely reflecting investors relief related to the agreement between the US, Mexico and Canada on trade, as well as further indications that the US Federal Reserve will be implementing more interest rate hikes in the coming months on the back of continued strong economic momentum and employment dynamics. Furthermore, higher bond yields in the euro area were also supported by less aggressive budget deficit targets in Italy for the years ahead than previously feared by markets. In addition, in the commodities markets, the price of oil recorded a fresh four-year high this week, thus exerting further upward pressure on inflationary expectations in general. Similarly, the 4.5% Medserv plc bond maturing in 2026 suffered a decline of 102 basis points to % on activity of 0.12 million. The 4.5% Hili Properties plc 2025 shed 150 basis points to 103.5% whilst both the 4.25% Corinthia Finance plc 2026 and the 3.75% Tumas Investments plc 2027 declined by 100 basis points to 105% and 104% respectively. In contrast, amongst this week s best performers, the 4% MIDI plc 2026 added 99 basis points to % whilst a miniscule deal lifted the 4.5% Grand Harbour Marina plc 2027 to 103.5%(+74 bp). Trading activity in the secondary market for local corporate bonds rebounded to 1.72 million during the past five days compared to last week s four-month low of 1.29 million. Amid this background, the yield on the tenyear US Treasury climbed above the 3.2% mark for this first time since early July Similarly, within the euro area, the benchmark ten-year German Bund yield rose to an over four-month high of 0.57% on Friday (compared to 0.49% last week) before partially retreating. Movements in global bonds yields are expected to remain very volatile in the weeks and months ahead as the world s most influential central banks continue with their current path of gradual monetary policy tightening. In this respect, it is also worth highlighting the European Central Bank s intention to halt its quantitative easing programme by the end of this year, with the first interest rate hike in the eurozone (from the present record low level of -0.4%) expected to take place after summer RF Malta Corporate Bond Index halts 2- week positive streak The RF Malta Corporate Bond Index trended lower for the first time in three weeks as it slipped by 0.07% to just under 1,066 points. The negative performance of the index was mostly due to the notable drops in five corporate bonds, all of which shed 100 basis points or more this week. The 6% Medserv plc 2020/23 fared worst as it tumbled by 275 basis points to % albeit on trivial volumes. Weekly Market Report 2

3 ANNOUNCEMENTS 2 October 2018 Bank of Valletta plc - Arbiter Decisions Appealed 3 October 2018 GO plc - IPO of BMIT Technologies plc Malta International Airport plc - September Traffic Results FINANCIAL ARTICLES Movements across the Maltese stock market in Q Article 558 / Weekly An article by Edward Rizzo analysing the main movements and developments across the local equity market in Q UPCOMING EVENTS 10 October 2018 Simonds Farsons Cisk plc Dividend Payment Date 23 October 2018 Santumas Shareholdings plc Annual General Meeting 2 European Central Bank Monetary Policy Meeting 1 November 2018 Bank of England Monetary Policy Meeting 8 November 2018 US Federal Reserve Monetary Policy Meeting Weekly Market Report 3

4 EQUITY MARKET No. of shares traded Market Value No of Deals Closing Price Closing Price Change in Closing Price (%) Last Trade Date OFFICIAL LIST Bank of Valletta plc 324, , % (05.10) HSBC Bank Malta plc 63, , % (05.10) Malta Int. Airport plc 52, , % (05.10) Int. Hotel Inv. Plc 5,000 3, N/C (03.10) GO plc 58, , % (05.10) RS2 Software plc 72,409 81, % (05.10) FIMBank plc (USD) 505, , % (05.10) Simonds Farsons Cisk plc 8,210 63, % (04.10) Mapfre Middlesea plc (28.09) PG plc 30,485 42, N/C (05.10) Malita Investments plc 118, , N/C (05.10) Lombard Bank Malta plc (27.09) Medserv plc (07.09) MaltaPost plc (27.09) MIDI plc 4,260 2, % (05.10) Tigné Mall plc (28.09) Malta Properties Company plc 41,869 21, % (03.10) Plaza Centres plc 100, , N/C (04.10) Grand Harbour Marina plc (02.08) Main Street Complex plc N/C (04.10) GlobalCapital plc 1, N/C (01.10) Santumas Shareholdings plc (28.09) Trident Estates plc 8,712 11, N/C (01.10) ALT. COMPANIES LIST Loqus Holdings plc 1, % (01.10) TOTALS 1,396,010 1,830, MSE EQUITY PRICE INDEX AT 4, POINTS CALENDAR YEAR TO DATE PERFORMANCE: -1.94% 5,000 MSE Equity Price Index 3 January 2012 to 4.5 MSE Equity Price Index Index value (points) 4,800 4,600 4,400 4,200 4,000 3,800 3,600 3,400 3, Value traded ( millions) 1 month +2.69% 3 months +0.57% 6 months +0.08% 1 year -5.57% 2 years -0.99% 3,000 2, years +2.14% 5 years % Weekly Market Report 4

5 MALTA GOVERNMENT STOCKS Security Change RF MGS INDEX AT 1, POINTS CALENDAR YEAR TO DATE PERFORMANCE: -2.74% No. of deals Volume (Nominal) Market Value SHORT-TERM FR% 2018 (VI) (15.03) (15.03) FR% 2018 (VII) % 2019 (I) (19.09) (19.09) 3.0% 2019 (III) (13.09) (13.09) FR% 2019 (IV) (15.03) (15.03) 3.2% 2019 (V) (03.10) (27.07) ,605,700 1,648,572 FR% 2019 (VI) % 2020 (I) (03.10) (26.09) ,461 26, % 2020 (II) (04.10) (24.09) ,500 71, % 2020 (IV) % 2020 (V) (03.08) (03.08) FR% 2020 (VI) MEDIUM-TERM 5.0% (04.10) (26.09) ,158 50, % 2022 (II) (02.10) (24.09) ,000 34, % (02.10) (07.09) ,510 25, % 2022 (IV) (26.09) (26.09) 5.5% (04.10) (25.09) ,872 37, % 2023 (III) (14.03) (14.03) 3.3% 2024 (I) (03.10) (19.09) ,000 31,965 LONG-TERM 1.5% 2027 (I) (19.09) (19.09) 4.8% 2028 (I) (03.10) (28.09) ,200 23, % 2028 (II) (05.10) (28.09) , , % 2029 (I) (03.10) (28.09) ,700 19, % 2029 (II) (05.10) (28.09) , , % (05.10) (28.09) ,000 48, % (05.10) (28.09) ,300 61, % 2032 (I) (05.10) (28.09) ,000 93, % 2032 (II) (05.10) (26.09) , , % 2033 (I) (05.10) (25.09) ,300 86, % 2034 (I) (05.10) (28.09) , , % 2035 (I) (28.09) (28.09) 2.5% 2036 (I) (05.10) (28.09) ,500 65, % 2039 (I) (05.10) (28.09) , ,729 3% 2040 (I) (05.10) (28.09) ,800 66, % 2041 I (05.10) (19.09) ,500 1,561 TOTALS 115 3,426,901 3,794,223 1,200 Rizzo Farrugia MGS Index 3 January Base = 1,000 points as at 31 December RF MGS Index Rizzo Farrugia MGS Index (points) 1,175 1,150 1,125 1,100 1,075 1,050 1,025 1, Value Traded ( millions) 1 month -0.61% 3 months -1.86% 6 months -2.77% 1 year -3.28% 2 years -7.53% years -4.79% 5 years +6.20% Weekly Market Report 5

6 CORPORATE BONDS OFFICIAL LIST Security Change No. of deals Volume (Nominal) Market Value 5.9% HSBC Bank Malta (03.09) (03.09) 5.35% BOV plc (05.10) (28.09) N/C 6 34,100 34, % MeDirect Bank plc EUR (04.10) (24.09) N/C 1 8,000 8, % MeDirect Bank plc GBP (26.02) (26.02) 4.25% BOV plc 2019 Series (05.10) (24.09) N/C 5 34,000 34, % BOV plc (05.10) (26.09) ,800 28, % Pendergardens Dev plc (03.10) (12.09) ,800 38, % MIH (04.10) (24.09) N/C 2 12,800 13, % Gasan Finance (24.09) (24.09) 5.8% IHI plc (19.09) (19.09) 5.75% CBC plc 2021 S1T (18.09) (18.09) 5.0% GlobalCapital plc (03.10) (28.09) N/C 2 28,000 27,860 6% Corinthia Fin (20.03) (20.03) 6% Pendergardens Dev plc (04.10) (26.09) N/C 3 28,000 31,080 6% Medserv plc (04.10) (10.09) ,000 6,208 6% MIH plc (04.09) (04.09) 5% MIH plc (01.10) (25.09) N/C 1 3,400 3, % GAP plc (05.10) (25.09) ,000 31, % IHI plc (06.09) (06.09) 5.3% United Finance plc (27.09) (27.09) 6.0% IHI plc (24.09) (24.09) 6.0% AX Investments plc (04.10) (27.09) ,800 7, % Mariner Finance plc (02.10) (28.09) N/C 1 10,000 10, % Tumas Investments plc (04.10) (27.09) N/C 2 24,400 26,376 5% Hal Mann Vella Group plc (04.10) (24.09) ,000 10, % MeDirect Bank plc EUR (07.09) (07.09) 6.0% MeDirect Bank plc GBP (13.09) (13.09) 5.1% 1923 Investments plc (05.10) (27.09) ,100 64, % Von der Heyden Group Fin plc (05.10) (28.09) N/C , , % Izola Bank plc (02.10) (06.09) N/C 1 8,000 8, % IHI plc (20.09) (20.09) 5.1% 6PM Holdings plc (05.10) (28.09) ,500 64, % Hili Properties plc (04.10) (24.09) ,500 19, % CBC plc 2025 S2T (20.09) (20.09) 4.50% Medserv plc (05.10) (11.09) , , % Medserv plc USD (04.10) (26.09) N/C 9 235, , % Hudson Malta plc (08.08) (08.08) 4.25% Corinthia Finance plc (01.10) (06.09) ,000 5, % MIDI plc (02.10) (27.09) ,000 16, % IHI plc Secured (04.10) (28.09) ,500 14, % IHI plc Unsecured (05.10) (26.09) ,000 36, % Plaza Centres plc (04.09) (04.09) 5.0% Dizz Finance plc (05.10) (27.09) ,000 76, % Med. Maritime Hub plc (02.10) (28.09) N/C 1 25,000 25, % Premier Capital plc (01.10) (26.09) N/C 1 4,000 4, % SD Finance plc (05.10) (18.09) N/C 10 66,800 69,613 4% Eden Finance plc (03.10) (25.09) ,000 42, % Tumas Investments plc (04.10) (18.09) ,000 14, % CBC plc 2027 S1T (24.09) (24.09) 4.5% Grand Harbour Marina plc (01.10) (26.09) ,000 4, % Simonds Farsons Cisk plc (04.10) (19.09) ,900 13, % MeDirect Bank plc EUR (11.09) (11.09) 5.0% MeDirect Bank plc GBP % Stivala Group Fin plc (04.10) (26.09) ,000 67, % Bortex Group Finance plc (03.10) (25.09) ,700 46, % Virtu Finance plc (28.09) (28.09) 3.85% Hili Finance Company plc (05.10) (28.09) ,000 94, % Exalco Finance plc (02.10) (19.09) N/C 2 12,000 12, % BOV plc 2030 S1T (04.10) (25.09) N/C 5 168, , % BOV plc 2030 S2T (05.10) (26.09) N/C 2 10,000 10,002 TOTALS 171 1,663,500 1,717,357 Weekly Market Report 6

7 RF MALTA CB INDEX AT 1, POINTS CALENDAR YEAR TO DATE PERFORMANCE: +0.30% Rizzo Farrugia Malta Corporate Bond Index RF Malta CB Index 3 January Base = 1,000 points as at 31 December 2008 RF Malta Corporate Bond Index (points) 1,100 1,090 1,080 1,070 1,060 1,050 1,040 1,030 1, Value Traded ( millions) 1 month +0.28% 3 months +0.41% 6 months +0.39% 1 year +1.12% 2 years +0.30% 3 years -1.60% 5 years +2.78% 1, Disclaimer This report was produced by Edward Rizzo, Director, Rizzo, Farrugia & Co. (Stockbrokers) Ltd ( Rizzo Farrugia ). Rizzo Farrugia are members of the Malta Stock Exchange and licensed to conduct Investment Services business by the Malta Financial Services Authority. The report contains public information only and is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. No representation or warranty, either expressed or implied, is provided in relation to the accuracy, completeness or reliability of the information contained herein, nor is it intended to be a complete statement or summary of the securities, markets or developments referred to in the report. Rizzo Farrugia is under no obligation to update or keep current the information contained herein. Since the buying and selling of securities by any person is dependent on that person s financial situation and an assessment of the suitability and appropriateness of the proposed transaction, no person should act upon any recommendation in this report without first obtaining investment advice. Rizzo Farrugia, its directors, the author of this report, other employees or clients may have or have had interests in the securities referred to herein, and may at any time make purchases and/or sales in them as principal or agent. Furthermore, Rizzo Farrugia may have or have had a relationship with or may provide or has provided other services of a corporate nature to companies herein mentioned. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Foreign currency rates of exchange may adversely affect the value, price or income of any security mentioned in this report. Neither Rizzo Farrugia, nor any of its directors or employees accepts any liability for any loss or damage arising out of the use of all or any part of this report. Additional information can be made available upon request from Rizzo, Farrugia & Co. (Stockbrokers) Ltd., Airways House, Fourth Floor, High Street, Sliema SLM Telephone: ; info@rizzofarrugia.com; Website: Rizzo, Farrugia & Co. (Stockbrokers) Ltd. All rights reserved. This report may not be reproduced or redistributed, in whole or in part, without the written permission of Rizzo Farrugia. Moreover, Rizzo Farrugia accepts no liability whatsoever for the actions of third parties in this respect. Weekly Market Report 7