MSE Trading Report for Week ending 17 January 2020

MSE Equity Total Return Index:

Chart of the Week:  Bank of Valletta plc

Highlights:
  • The local equities market managed to recoup part of the previous week’s loss as it closed at 9,524.417 points. A total of 19 equities were active, of which nine traded higher while another five closed in the red. A total turnover of €1.8 million was generated across 185 deals.
  • In the banking industry, Bank of Valletta plc traded between a weekly low of €1.06 and a high of €1.12 but ended the week at €1.09. This translated into a 2.35% increase, as 162,005 shares changed ownership over 42 transactions.
  • Its peer, HSBC Bank Malta plc registered a further 3.45% decline, as it closed at €1.12. This was the outcome of 13 deals with a spread of 39,865 shares. Last Friday, the bank announced that on January 15, 2020, it entered into a promise of sale agreement with Malta Properties Company plc (MPC), to sell a building complex in Swatar. Such sale’s purpose is the disposal of a non-core property asset, which is not part of the bank’s normal business. This shall generate an immaterial profit as this responsibility is transferred to a third party, lower volatility in earnings associated with revaluations, and the complexity of related-party obligations shall be reduced.
  • Last Wednesday, Malta International Airport plc announced that the Board shall meet on February 26, 2020 to consider and approve its financial statements for the year ended December 31, 2019. The Board shall also consider the payment of a dividend to its shareholders. The equity was active over 17 deals involving 20,557 shares, resulting into a 1.47% gain, to close at €6.90.
  • In the property sector, five equities were active, of which one headed north while the rest closed unchanged. Last Wednesday, MPC announced that on January 15, 2020, it entered into a promise of sale agreement with HSBC Bank Malta plc, for the acquisition of the building complex in Swatar, including the parking area adjacent to this building complex as well as the overlying airspace and sub-terrain of the property as freehold. The property’s sale and acquisition is €8.05 million, of which €0.805 million are payable as per price terms and conditions set out in the agreement, and the remaining €7.245 million shall be paid by the purchaser on the deed on account of the price.
  • HSBC and MPC have also agreed that the deposit is a payment made on account of the price and not the earnest. Should MPC terminate agreement with a reason valid at law, MPC shall have the right to the immediate refund of the deposit. Moreover, if MPC fails to appear for the publication of the deed, for no valid reason at law, HSBC shall have the option to proceed against MPC or decide to request/retain the payment of deposit in its favour by way of pre-liquidated damages. This agreement will remain valid and effective for five months from the agreement date, provided that an automatic three-month extension for the agreement will be given should the AIP permit application process still be ongoing. Once the deed reaches publication, the property will form part of MPC’s property portfolio, whereby MPC will receive the lease payments made in terms of the lease agreement.
  • The equity did not register any movements in price as it closed at €0.65. During the week, a total of 107,810 shares were spread over 10 deals.
  • Last Friday, IT services provider, BMIT Technologies plc, announced that the final deed of sale and purchase of the property, in Tal-Handaq, which houses the Group’s largest data centre, was executed on January 17, 2020 A substantial part of the company’s operations can now be carried on from its own property. This shall minimize the risks involved with migration to another facility since there is no need for relocation of any customers allocated to the data centre operating from the property. This implies less expenses with respect to rental of premises.
  • The equity closed the week in positive territory with a 2.94% increase to €0.525. Seven deals involving 92,000 shares were executed. On the other hand, its parent company, GO plc, closed in the red with a 1.42% decline to €4.16. During the week, the equity traded lower at €4.12 but managed to recoup part of the loss last Friday. This was the result of 10 deals involving 12,446 shares.
  • RS2 Software plc registered its first negative weekly change in price for the year despite being the most liquid equity, as total turnover stood over €1.1 million. A total of 477,679 shares changed hands over 41 transactions, dragging the price 2.56% lower to €2.28.
  • Last Thursday, Mapfre Middlesea plc announced that the board shall meet on March 12, 2020 to consider, and if deemed fit, approve its audited financial statements for the year ended December 31, 2019. The board shall also consider the declaration of dividend to be recommended to the Annual General Meeting of Shareholders. The equity traded once last Monday but closed unchanged at €2.34. However, last Thursday, a sole deal of 72 shares pushed its price into the red, to close 5.98% lower at €2.20.
  • The MSE Corporate Bonds Total Return Index declined by a further 0.036% as it closed at 1,080.24 points. A total of 53 issues were active of which 28 headed north, while another 12 closed in the opposite direction. The 3.75% Bank of Valletta plc Unsecured Sub € 2026-2031 headed the list of gainers as it closed 2.23% higher at €103. On the other hand, the 4.5% Hili Properties plc Unsecured € 2025 declined by 2.38%, to close at €102.60.
  • On the Sovereign debt front, the MSE MGS Total Return Index drifted 0.289% lower to 1,112.08 points. Out of 20 active issues, only three registered a gain while another 16 lost ground. The 2.4% MGS 2041 (I) closed 0.12% higher at €128. Conversely, the 3% MGS 2040 (I) lost 3.15%, as it ended the week at €138.50.
  • In the Prospects MTF market, four issues were active. The 5% The Convenience Shop Holding plc Unsecured Call € 2026-2029 registered the highest liquidity, as total turnover amounted to €59,373.

 

Upcoming Events:
Best Performers:
1. GCL+7.14%
2. FIM+5.00%
23 JAN 2019EU: ECB – Interest Rate Decision3. MLT+4.44%
29 JAN 2019US: FED – Interest Rate Decision
30 JAN 2019UK: BoE – Interest Rate DecisionWorst Performers:
1. MMS-5.98%
2. SFC-3.51%
3. HSB-3.45%

 

 

 

Price (€): 17.01.2020Price (€): 10.01.2020Weekly Change (%)2020 Performance (%)
MSE Equity Total Return Index9,524.417 9,497.8580.280-0.949
BMIT Technologies plc0.5250.5102.940.96
Bank of Valletta plc1.0901.0652.352.83
FIMBank plc (USD)0.6300.6005.005.00
GlobalCapital plc0.3000.2807.147.14
Grand Harbour Marina plc0.5500.5500.000.00
GO plc4.1604.220-1.42-2.35
Harvest Technology plc1.5001.5000.00 0.00
HSBC Bank Malta plc1.1201.160-3.45-13.85
International Hotel Investments plc0.8150.7804.49-1.81
Lombard Bank plc2.1802.1800.00-4.39
Loqus Holdings plc0.0660.0660.001.55
MIDI plc0.5000.5000.00-7.41
Medserv plc1.1001.1000.000.00
Malta International Airport plc6.9006.8001.470.00
Malita Investments plc0.9400.9004.444.44
Mapfre Middlesea plc2.2002.340-5.981.85
Malta Properties Company plc0.6500.6500.003.17
Main Street Complex plc0.5500.5500.00-8.33
MaltaPost plc1.3501.3103.053.05
PG plc1.8501.8002.780.54
Plaza Centres plc1.0101.0100.000.00
RS2 Software plc2.2802.340-2.566.54
Simonds Farsons Cisk plc11.00011.400-3.51-4.35
Santumas Shareholdings plc1.4101.4100.000.00
Tigné Mall plc0.9000.9000.000.00
Trident Estates plc1.5501.5500.000.00

 

 

 

 

 

This article, which was compiled by 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 of the Malta Stock Exchange and a member of the Atlas Group. For further information contact Jesmond Mizzi Financial Advisors Limited at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email [email protected].