MSE Index drifts lower amid virus fears

MSE Daily Trading Report, 17 March, 2020

The MSE Equity Total Return Index registered a further decline as government imposed local restrictions due to the coronavirus pandemic which continues to grip economies across the globe. The index closed 2.674% lower as it reached 8,241.083 points. A total of 16 equities were active, of which 13 traded lower while the other three closed unchanged. A total turnover of €785,240 was generated over 123 deals.

The most liquid equity was Malta International Airport plc as it registered a total turnover of €234,088. The equity reached an intra-day low price of €4.76 but managed to recover part of the loss as it closed at €4.90. This was the result of 28 deals involving 47,948 shares, which dragged the price 2% downwards.

Three equities were active in the banking industry of which Bank of Valletta plc registered the highest liquidity as total turnover stood at €102,413. A total of 102,359 shares changed hands over 17 transactions, leaving price unaltered at €1.00.

Its peer, HSBC Bank Malta plc was down by 6.80% as 40,056 shares were spread over nine transactions. The bank ended the session at €0.96 and generated a total turnover of €38,962.

Lombard Bank Malta plc announced that it is constantly monitoring the current situation which might impact the bank’s stakeholders, operations and performance. The bank has a contingency plan which is being monitored and updated in line with measures recommended by the government of Malta, public health authorities and regulators.  The bank has allotted €12.5 million to provide temporary working capital requirements to business customers having temporary liquidity shortages. This is since the current outbreak may have negative effects on the activities of its business customers. Even though it is still early to forecast the impact on financial and operational performance, the bank is confident that it will overcome the challenges that this pandemic may bring with it.

The bank lost 0.93% as it ended the session at €2.12. Four deals involving 6,213 shares generated a total turnover of €13,172.

RS2 Software plc was also highly liquid as a total turnover of €177,971 was recorded. Price declined by 1.96% to €2.00 as 89,101 shares changed ownership across 22 transactions. During today’s session., the equity reached €1.95 but managed to recouped part of the loss until end of day.

Similarly, IT services provider, BMIT Technologies plc, registered a total turnover of €137,154 as 13 deals involving 277,579 shares were executed. As a result, price was down by 1.6%, to close at €0.492. Meanwhile, its parent company, GO plc, traded twice over 1,00 shares, worth €4,100. The equity ended the session at €4.10, translating into a 2.38% fall in price.

Moving on to the property sector, all four active equities closed in the red. Malta Properties Company plc announced that the board is continuously monitoring the developments of the virus outbreak and updating its policy in line with the government’s recommended measures accordingly. In order to safeguard its staff and customers, the company has undertaken a number of initiatives, including its business continuity plan which was a successful one since no interruptions were endured with business operations.

The equity executed three deals involving a mix of 18,000 shares. This resulted into a 12.5% decline in price, to close at €0.525. Total turnover amounted to €9,465.

Similarly, Trident Estates plc registered a 12.26% decline as it closed at €1.36. Total turnover stood at €10,880 as 8,000 shares changed hands over three transactions.

A sole deal of 5,000 Malita Investments plc shares dragged price 9.09% downwards to €0.80. A total turnover of €4,000 was recorded.

Tigne’ Mall plc headed the list of fallers as it lost 15.12% as one deal of 1,000 shares was executed,. The equity ended the session at €0.73 and generated a slim turnover.

Seven deals involving 15,841 International Hotel Investments plc shares resulted into a 7.44% decline in price, to close at €0.560. The equity registered a total turnover of €9,226.

Mapfre Middlesea plc traded 1.71% lower at €2.30 as 7,600 shares were spread over four transactions. A total turnover of €17,480 was recorded. Similarly, four deals involving 5,992 MaltaPost plc shares dragged price 4.17% lower to €1.15. Total turnover amounted to €6,673.

Elsewhere, Main Street Complex plc and Plaza Shopping Centres plc were both active but closed unchanged at €0.50 and €0.98, respectively.

Simonds Farsons Cisk plc announced that the financial results for 2020, to be issued in May 2020, were prepared before the current virus outbreak. The company believes that this pandemic will impact the business of the group for the following year and beyond. Should there be a lock-down of all or parts of communities, the group’s demand for product lines in the food and beverage sector will be significantly impacted. The company believes it is too early to estimate the potential impact on the revenues and profitability of the group. The board is constantly monitoring the situation and is reviewing the group’s capital and operational expenditure to re-align resources accordingly. Moreover, the company has multiple contingency plans, giving main priority to the well-being of its staff and customers while maintaining the quality of its products and services.

The equity did not record any trading activity.

In the Sovereign Debt market, all 15 active issues lost ground. The 4.3% MGS 2033 (I) registered the largest fall in price. The bond traded 5.79% lower, ending the session at €143.15.

In the Corporate Debt market, 37 issues were active, of which 23 closed in the red while the 3.5% Bank of Valletta plc € Notes 2030 S1 T1 was the only positive performer as it traded 0.05% higher at €100.05. Meanwhile, the 6% International Hotel Investments plc € 2024 registered an 8.26% decline as it closed at par.

In the Prospects MTF market, both active issues closed in negative territory. The 5.5% IG Finance plc € Unsecured 2024-2027 traded 0.5% lower at par while the 5% Smartcare Finance plc Secured € 2029 lost 0.1% as it closed at €100.90.

The Equities traded today were:

Symbol CodeVolume TradedValue TradedTradesClosing Price% Change
BOV102,359102,413.10171.0000.00
HSB40,05638,962.2090.960-6.80
LOM6,21313,171.5642.120-0.93
MMS7,60017,480.0042.300-1.71
GO1,0004,100.0024.100-2.38
IHI15,8419,226.3470.560-7.44
PZC4,0053,924.9030.9800.00
MIA47,948234,088.12284.900-2.00
MTP5,9926,673.4441.150-4.17
RS289,101177,971.20222.000-1.96
MLT5,0004,000.0010.800-9.09
TML1,000730.0010.730-15.12
MPC18,0009,465.0030.525-12.50
TRI8,00010,880.0031.360-12.26
MSC30,00015,000.0020.5000.00
BMIT277,579137,154.23130.492-1.60

The Corporate Bonds traded today were:

Closing Price% Change
5.8% International Hotel Investments plc 2021100.200-1.77
5.75% Central Business Centres plc Unsecured € 2021 S1T1102.5000.00
5% Mediterranean Investments Holding plc Unsecured € 2022101.0000.00
4.25% GAP Group plc Secured € 2023103.3000.00
6% AX Investments Plc € 2024112.0000.00
4.4% Von der Heyden Group Finance plc Unsecured € 202498.0000.00
6% International Hotel Investments plc € 2024100.000-8.26
5% Hal Mann Vella Group plc Secured € 2024103.500-1.48
5.1% 1923 Investments plc Unsecured € 2024100.000-0.50
4.25% Best Deal Properties Holding plc Secured € 2024101.300-0.20
5.75% International Hotel Investments plc Unsecured € 2025100.000-0.99
4.5% Izola Bank plc € Unsecured 2025106.000-0.70
5.1% 6PM Holdings plc Unsecured € 2025100.6500.00
5.25% Central Business Centres plc Unsecured € 2025 S2T1103.5500.00
4.35% Hudson Malta plc Unsecured € 2026104.250-0.72
4.25% Corinthia Finance plc Unsecured € 2026101.5000.00
5.9% Together Gaming Solutions plc Unsec Call Bds €2024-202698.000-2.33
4% International Hotel Investments plc Secured € 2026100.000-1.96
5% Dizz Finance plc Unsecured € 2026100.0000.00
4.8% Mediterranean Maritime Hub Finance plc Unsecured € 202699.990-0.01
3.75% Premier Capital plc Unsecured € 2026100.000-0.50
3.25% AX Group plc Unsec Bds 2026 Series I100.000-0.99
4% International Hotel Investments plc Unsecured € 2026100.000-1.48
4.35% SD Finance plc Unsecured € 2027100.000-0.50
4% Eden Finance plc Unsecured € 2027100.000-3.85
3.5% Simonds Farsons Cisk plc Unsecured € 2027107.1500.00
4% Stivala Group Finance plc Secured € 202799.000-1.00
3.75% Virtu Finance plc Unsecured € 2027101.0000.00
3.75% Bortex Group Finance plc Unsecured € 2027100.000-1.72
4% Exalco Finance plc Secured € 2028105.6000.00
4% SP Finance plc Secured EUR Bonds 202999.980-0.02
3.65% Stivala Group Finance plc Secured € 2029101.500-0.78
3.8% Hili Finance Company plc Unsecured € 202999.860-0.13
3.75% AX Group plc Unsec Bds 2029 Series II101.500-2.64
3.5% Bank of Valletta plc € Notes 2030 S1 T1100.0500.05
4.25% Mercury Projects Finance plc Secured € 2031101.5000.00
3.75% Bank of Valletta plc Unsecured Sub € 2026-2031100.300-3.58

The Government Stocks traded today were:

Closing Price% Change
5% MGS 2021(I)107.110-0.24
4.8% MGS 2028 (I)135.010-3.29
4.5% MGS 2028 (II)132.780-3.84
2.3% MGS 2029 (II)114.200-2.19
5.1% MGS 2029 (I)140.850-4.51
5.25% MGS 2030 (I)144.760-2.48
5.2% MGS 2031 (I)148.510-2.67
4.65% MGS 2032 (I)144.860-2.84
4.45% MGS 2032 (II)142.750-2.89
4.3% MGS 2033 (I)143.150-5.79
4.1% MGS 2034 (I)143.000-5.44
2.5% MGS 2036 (I)122.500-2.58
2.1% MGS 2039 (I)118.430-1.95
3% MGS 2040 (I)134.370-2.33
2.4% MGS 2041 (I)123.750-2.57

The Prospect MTF Bonds traded today were:

Closing Price% Change
5.5% IG Finance plc € Unsecured 2024-2027100.000-0.50%
5% Smartcare Finance plc Secured € 2029100.900-0.10%

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].