HSBC pushes MSE Index further up

MSE Daily Trading Report, 18 February, 2020

The MSE Equity Total Return Index a further 0.541% gain as it ended the session at 9,585.860 points. Eight equities were active, of which five registered gains while another one lost ground. A total turnover of €320,049 was generated over 47 transactions.

The highest liquidity was recorded by HSBC Bank Malta plc as it registered a total turnover of €115,680. This was the result of 20 deals involving 105,680 shares. The equity reached an intra-day high price of €1.14 but closed at €1.1, translating into a 4.76% gain.

Earlier today, the bank announced its preliminary statement of annual results for the year ended December 31, 2019. Adjusted profit before tax was up by 24% as it stood at €45.3 million, translating into an €8.8 million increase when compared to the previous year. This result exceeded management expectations mainly due to the continued focus on cost reduction and credit quality.

Reported profit attributable to shareholders amounted to €20.2 million as earnings per share stood at 5.6 cents per shares versus an 8.0 cents during the same period last year.  Moreover, the bank’s net interest income, when compared to 2018, advanced by 1% to €110.1 million. Net trading income has also increased by €1.8 million as a result of a fair value gain on VISA shares. Meanwhile net non-interest income marginally declined with strong fee performance within commercial banking. This was due to the new fees offset by a reduction in fee income within insurance.

The bank’s capital ratios registered a positive performance as CET1 increased to 16.4%, in line with its strong capital base and compliance with the regulatory capital requirements. This increase was also driven by a €13 million net dividend paid from the insurance subsidiary.

Total dividend for 2019 adds up to 3.8 cents as the final gross dividend will be 2.1 cents per share (gross of tax), together with the gross interim dividend of 1.7 cents per shares paid in September 2019. The final dividend shall be paid on April 15, 2020 to all shareholders listed on the bank’s register as at March 9, 2020.

Bank of Valletta plc reached €1.06 during the session but closed unchanged at €1.05. Nine deals with a spread of 31,394 shares generated a total turnover of €33,188.

Five deals involving 7,434 Malta International Airport plc shares did not impact the equity’s previous closing price of €7.00. A total turnover of €52,026 was recorded.

RS2 Software plc registered a 0.80% increase as 32,770 shares changed hands over eight transactions. The equity ended the session at €2.52 and generated a total turnover of €82,045. Similarly, a sole deal of 414 International Hotel Investment plc shares pushed the price by 0.63% to €0.805.

In the property sector, Tigne’ Mall plc was the only negative performer at it closed 2.22% lower at €0.88. Two deals involving 8,300 shares were executed, generating a total turnover of €7,304.

Santumas Shareholdings plc headed the list of gainers with a 7.14% increase, to close at €1.50. This was the outcome of a sole deal with slim volume.

Similarly, one transaction of 20,000 BMIT Technologies plc shares resulted into a positive 0.96% change in price. The equity ended the session at €0.525 while total turnover stood at €10,500.

In the sovereign debt market, out of 16 active issues, 14 traded higher while the other two closed in the red. The 2.1% MGS 2039 (I) advanced by 2.01% as it closed at €127.00. Conversely, the 2.4% MGS 2041 (I) lost 0.49%, ending the session at €130.00.

In the Corporate debt market, 15 issues were active of which four headed north while another five closed in the opposite direction. The best performance was registered by the 3.75% AX Group plc Unsec Bds 2029 Series II as it closed 0.47% higher at €106.00. Meanwhile, the 6% International Hotel Investments plc € 2024 closed 0.92% lower at €108.00.

In the Prospects MTF market, three issues were active. The 5.75% Pharmacare Finance plc Unsecured EUR Bonds 2025-2028 closed 1.35% higher at €101.35.

 

The Equities traded today were:

Symbol CodeVolume TradedValue TradedTradesClosing Price% Change
BOV31,39433,187.9491.0500.00
HSB105,680115,680.12201.1004.76
IHI414333.2710.8050.63
MIA7,43452,026.3057.0000.00
RS232,77082,045.0082.5200.80
TML8,3007,304.0020.880-2.22
STS648972.0011.5007.14
BMIT20,00010,500.0010.5250.96

 The Corporate Bonds traded today were:

 Closing Price% Change
5% Mediterranean Investments Holding plc Unsecured € 2022101.5000.00
4.4% Von der Heyden Group Finance plc Unsecured € 2024101.9500.20
6% International Hotel Investments plc € 2024108.000-0.92
5.1% 1923 Investments plc Unsecured € 2024101.9000.00
4.25% Best Deal Properties Holding plc Secured € 2024102.980-0.02
5.9% Together Gaming Solutions plc Unsec Call Bds €2024-2026100.000-0.20
5% Dizz Finance plc Unsecured € 2026101.8500.00
4% International Hotel Investments plc Unsecured € 2026103.0000.01
3.75% Mercury Projects Finance plc Secured € 2027101.4900.00
3.75% Bortex Group Finance plc Unsecured € 2027104.5000.00
3.75% TUM Finance plc Secured € 2029103.0000.00
3.65% Stivala Group Finance plc Secured € 2029102.300-0.67
3.8% Hili Finance Company plc Unsecured € 2029100.100-0.05
3.75% AX Group plc Unsec Bds 2029 Series II106.0000.47
4.25% Mercury Projects Finance plc Secured € 2031101.7000.20

The Government Stocks traded today were:

 Closing Price% Change
5% MGS 2021(I)107.720-0.01
4.3% MGS 2022 (II)110.1800.01
4.8% MGS 2028 (I)139.7700.27
4.5% MGS 2028 (II)137.6600.31
2.3% MGS 2029 (II)119.6100.22
5.1% MGS 2029 (I)146.4000.24
5.25% MGS 2030 (I)150.3500.25
5.2% MGS 2031 (I)154.7400.42
4.65% MGS 2032 (I)150.8900.23
4.45% MGS 2032 (II)149.0000.35
4.3% MGS 2033 (I)149.6800.46
4.1% MGS 2034 (I)149.5300.34
2.5% MGS 2036 (I)129.3100.50
2.1% MGS 2039 (I)127.0002.01
3% MGS 2040 (I)141.4200.16
2.4% MGS 2041 (I)130.000-0.49

The Prospects MTF Bonds traded today were:

 Closing Price% Change
5% HH Finance Plc Unsecured Euro Bonds 2023-2028100.0000.00%
5.75% Pharmacare Finance plc Unsecured EUR Bonds 2025-2028101.3501.35%
5% Borgo Lifestyle Finance plc Secured Callable 2026-2029101.0000.00%

 

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. Jesmond Mizzi Financial Advisors Limited is licensed to conduct investment services by the MFSA and is a Member Firm of the Malta Stock Exchange. 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 Limited at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email [email protected].