Overall gain 23.6%, dividend yield 3.5% – Market cap at €20.5 bln, 33% more than GDP
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Cyprus equities ended 2007 on a positive mood, racking up solid gains of 23.6% compared to 2006, for one of the best performances in Europe, which combined with the average dividend yield of 3.5%, raises the total gains to above 27%.
The CSE General Index, comprised of the Main, Parallel and Shipping sectors ended 2007 at 4820.72 points, for a gain of 23.6% compared to its 3900.39 close end of 2006. The FTSE20 large cap index ended 24.2% better at 1653.11 points.
The CSE General Index traded in a 3970.60 and 5518.50 points range and on its best day, its overall performance topped 41.5% according to Financial Mirror calculations.
The Main index ended 23.2% firmer at 4907.57 points. The Parallel index was up 36.2% at 2136.32 points while the Alternative index closed 62.6% higher at 2909.36 points. The Approved Investment sector was flat, gaining 1% to 2301.53 points.
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– EUR 8 bln wealth created
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The CSE’s combined market capitalization reached EUR 20.52 bln according to Financial Mirror data, which is EUR 8 bln above the 2006 total of EUR 12.5 bln and well above the EUR 5.6 bln cap end of 2005 and EUR 3.7 bln end of 2004.
The combined market cap of EUR 20.52 bln is also 33% more than the entire GDP of Cyprus, which according to the Statistical Service is seen at EUR 15.5 bln (CYP 9.07 bln) for 2007.
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– Best large caps
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After trading at a record high of EUR 13.8, the share price of Bank of Cyprus ended 2007 at EUR 12.46 per share for a 20.74% gain, which combined with the 3.8% total dividend represented by the 2.33% dividend yield for 2006 and the interim dividend yield of 1.51% paid in December from the 2007 profits, takes the overall performance to 24.54%.
Hellenic Bank was the best performer among the major banks, closing at EUR 4.60 per share for a 38.5% gain, which combined with its dividend yield of 2.25%, takes the total to 40.8%.
Marfin Popular Bank ended 2007 at EUR 9.12 per share in a EUR 7.38-11.18 range while Louis Plc, the cruise and hotel group ended at EUR 0.56 per share in a EUR 0.64-0.46 range.
Cyprus Trading Corporation (CTC), the retail, airports management and property conglomerate scored the best performance among the Main Market stocks, ending 147% higher at EUR 2.40 per share, mostly on the back of intense takeover activity, involving CTC acquiring FWW and in turn becoming the subject of a takeover bid by NK Shacolas Holdings.
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– Property
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Property developers and contracting companies had yet another positive performance last year, boosted by intense activity in the market both in
K. Athienitis Contracting Developers (ACD) scored the best performance in the Parallel Market, closing 247% higher at EUR 1.49 per share, while A. Panayides Contracting (APC), listed in the Alternative sector scored an impressive 181% gain closing 2007 at EUR 0.45 per share.
Pandora Investments (PND), also in the Alternative sector, ended 2007 on a high note, racking up a gain of 160.6% ending at EUR 0.86 per share, with rumours persisting that the company will become a takeover target, just as two major property groups — Aristo Developers (ARD) and Lanitis Development (LDL) — were among takeover targets by overseas investors.
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– Small caps
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The letter “L†was the lucky word for Cypriot investors dabbling in small cap stocks that become the subject of takeovers in 2007. Leda Investment (LEDA) and Lemeco-Silvex (LEM) ended 2007 with a whopping gain of 600% each, while Laser Investments (LAS) ended 2007 up 375%. All three stocks were the subject of successful takeover bids involving Aspis Holdings or persons associated with Aspis.
In other stocks, Toxotis Investments (COV) closed 211% higher while by far one of the most controversial stocks of 2007, Sea Star Capital (SEAS) ended 2007 at EUR 0.28, for a 211% positive performance.
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– IPOs
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2007 will also be remembered as the year when new companies started listing on the Cyprus Stock Exchange.
Woodland Designs (WOOD) was the only new listing to score a positive performance ending 2007 with a gain of 145% at EUR 2.21 per share. Ermes Department Stores (ERME), which opened trading at EUR 0.82 closed 2007 down by 17% at EUR 0.68. Mitsides (MIT), which opened trading at EUR 1.89 ended 27.5% lower at EUR 1.37, while Karaolis Group (KARA), which opened at EUR 0.36, ended 20% lower at EUR 0.24 per share.
Mitsides and Ermes however, were also among the growing number of companies declaring a dividend in 2007. The dividend yield of Mitsides, calculated at 17% and that of Ermes at 9%, cushioned some of the capital losses.
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– Dividend back in fashion
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An increasing number of CSE listed companies chose to reward shareholders with cash in the form of dividends, in addition to the capital gains scored during 2007 in the best sign that the profits declared are real and sustainable.
According to Financial Mirror data, a total of 65 CSE companies declared and paid dividends in 2007. Of the total, 13 were in the Main Market, 10 in the Parallel sector, 29 in the Alternative and 13 in the Approved Investments sector.
Bank of Cyprus had a combined 3.8% dividend yield, Hellenic Bank had a yield of 4.10% while Marfin Popular Bank had a yield of 3.4%. In the Main market, Muskita Aluminium (MAI) had the highest yield at 6.6%.
In the Parallel Market, Mitsides had the best yield of 17%. In the Alternative Market, Dimco Electrical with a yield of 22% had the highest yield while in the Approved Investments, the best yield was given by Apollo Investments at 14.3%.
