Large caps drag MSE Index further down

MSE Daily Trading Report, 23 March, 2020

The MSE Equity Total Return Index drifted lower as it closed 3.586% lower at 7,622.287 points. A total of 10 equities were active, of which eight lost ground while the remaining two closed unchanged. Total turnover of €328,141 was generated over 94 deals.

Malta International Airport plc extended its loss by 12.44%, as it closed at €3.52. A total of 36,104 shares changed hands over 43 transactions, generating a total turnover of €134,639.

In the banking sector, Bank of Valletta plc continued to trade in the red as it reached the €0.90 price-level. This translates into a 2.17% fall in price. Total turnover amounted to €54,939 as 17 deals involving a mix of 60,681 shares were executed.

Similarly, Lombard Bank Malta plc traded twice over 6,000 shares, ending the session 3.81% lower at €2.02. A total turnover of €12,120 was generated.

This afternoon, the bank announced the approval of the audited financial statements for the year ended December 31, 2019. These shall be submitted for approval of shareholders during the next Annual General Meeting. This AGM has been postponed to a later date which has not been confirmed yet due to the current coronavirus issues. The board has also agreed on the recommendation of a final net dividend of 4.55 cent per nominal €0.25 shares. This shall be approved during the AGM, of which a dividend distribution date is not yet confirmed.

The bank registered an 11.1% increase in profit before tax for the year ended December 31, 2019 when compare to the previous year, as it stood at €15.3 million. Such positive performance was the result of prudent business practices and persistent low interest rates.

An increase in credit activity pushed net interest income 12.4% upwards to €19.7 million versus the previous year’s figure. This figure was also impacted by judicious treasury management intended to decrease the impact of negative interest rates together with repricing of liabilities at finer interest rates.

The group’s total assets were up by 9.70% to €1,042.3 million when compared to the same period last year. Likewise, equity attributable to shareholders was up by 10%, as it amounted to €119.1 million. The group’s earnings per shares increased by 2 cents to 21.1 cents while post tax return on equity stood at 8.2%.

The bank’s total capital ratio and leverage ratio recorded were 16.01% and 10.46% – both of which are in excess of the minimum regulatory requirements. There was no exposure held in foreign government or corporate bonds.

Meanwhile, HSBC Bank Malta plc was active but closed unchanged at €0.90. The bank executed five deals involving 12,224 shares, worth €11,060.

A sole deal of 5,000 International Hotel Investments plc shares dragged price 9.82% into the red, to close at €0.505. A total turnover of €2,525 was recorded.

RS2 Software plc traded 8.42% lower as 9,300 shares changed hands over six transactions. Total turnover stood at €16,253 as the equity ended the session at €1.74.

On a similar note, BMIT Technologies plc lost 1.96% as 98,600 shares changed ownership over 11 deals. Total turnover amounted to €48,514 while the equity closed at €0.50.

Retail Conglomerate, PG plc, executed a spread of 21,600 shares over four transactions, worth €38,816. As a result, price declined by 7.89%, ending the session at €1.75.

Another negative performer was Mapfre Middlesea plc, as it traded once on slim volume. The equity ended the session at €2.26 – equivalent to a 0.88% fall in price.

Four deals involving 17,100 Malta Properties Company plc shares did not impact the equity’s previous closing price of €0.50. Total turnover amounted to €8,550.

Medserv plc announced that one of its subsidiaries, Medserv Operations Limited, signed a long-term agreement with Air Liquide’s subsidiary – ALOS, to install and operate a compressed gases filling plant at the company’s base in the Malta Freeport, subject to required approvals. If approved, this transaction will commence, which will provide diving and welding gases to the Mediterranean offshore industry.

In the Sovereign Debt market, out of 11 issues were active, nine registered gains while the other two lost ground. The 3% MGS 2040 (I) registered the best performance as it closed 4.80% higher at €138.33. Conversely, the 5.2% MGS 2020 (I) closed at €101, translating into a 0.4% fall in price.

In the Corporate Debt market, 26 issues were active, of which two headed north while 15 closed in the opposite direction. The 5.1% 1923 Investments plc Unsecured € 2024 headed the list of gainers as it closed 0.99% higher at €99.98. On the other hand, the 4.5% Izola Bank plc € Unsecured 2025 closed 5.66% lower to close at par.

In the Prospects MTF market, the 5% Borgo Lifestyle Finance plc Secured Callable 2026-2029 was active as it traded 1.58% lower, ending the session at €93.50.


The Equities traded today were:

Symbol CodeVolume TradedValue TradedTradesClosing Price% Change

The Corporate Bonds traded today were:

Closing Price% Change
3.65% GAP Group plc Secured € 2022101.0000.00
6% AX Investments Plc € 2024100.5100.46
6% International Hotel Investments plc € 2024100.0000.00
5.3% Mariner Finance plc Unsecured € 2024100.000-4.31
5% Tumas Investments plc Unsecured € 2024103.2000.00
5.1% 1923 Investments plc Unsecured € 202499.9800.99
4.25% Best Deal Properties Holding plc Secured € 202499.0000.00
5.75% International Hotel Investments plc Unsecured € 2025100.000-0.05
4.5% Izola Bank plc € Unsecured 2025100.000-5.66
5.1% 6PM Holdings plc Unsecured € 202599.9900.00
4% International Hotel Investments plc Secured € 202699.000-0.10
4% Merkanti Holding plc Secured € 202698.500-1.99
5% Dizz Finance plc Unsecured € 2026100.0000.00
3.75% Premier Capital plc Unsecured € 202690.0000.00
3.25% AX Group plc Unsec Bds 2026 Series I100.0000.00
4.35% SD Finance plc Unsecured € 202798.000-1.90
4% Eden Finance plc Unsecured € 202798.000-1.00
3.75% Tumas Investments plc Unsecured € 2027101.890-0.13
4.5% Grand Harbour Marina plc Unsecured € 202799.990-0.01
4% Stivala Group Finance plc Secured € 202798.000-1.90
3.75% Bortex Group Finance plc Unsecured € 202797.500-0.51
4% Exalco Finance plc Secured € 2028100.000-5.30
3.65% Stivala Group Finance plc Secured € 202999.9000.00
3.8% Hili Finance Company plc Unsecured € 202997.000-0.51
3.5% Bank of Valletta plc € Notes 2030 S1 T1100.100-0.15
3.5% Bank of Valletta plc € Notes 2030 S2 T199.500-0.50

The Government Stocks traded today were:

Closing Price% Change
4.6% MGS 2020 (II)100.410-0.30
5.2% MGS 2020 (I)101.000-0.40
5% MGS 2021(I)107.1000.01
5.25% MGS 2030 (I)146.8600.59
4.65% MGS 2032 (I)147.5503.33
4.45% MGS 2032 (II)145.5003.37
4.1% MGS 2034 (I)146.4000.37
2.5% MGS 2036 (I)125.7700.00
2.1% MGS 2039 (I)128.0001.19
3% MGS 2040 (I)138.3304.80
2.4% MGS 2041 (I)131.0002.53

The Prospect MTF Bonds traded today were:

Closing Price% Change
5% Borgo Lifestyle Finance plc Secured Callable 2026-202993.500-1.58%

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].