MSE Equity Total Return Index:

Chart of the Week: Simonds Farsons Cisk plc

Highlights:

• The MSE Equity Total Return Index closed the week a mere 0.22% lower at 7,862.881 points, outperforming the Euro Stoxx 50 index which fell 2.4%. Out of 20 active equities, six headed north while another seven traded lower, over a four-day trading week since Tuesday was a public holiday.
• On Wednesday, Bank of Valletta plc announced the decision to keep the initial proposal for distribution of the dividend (a final net dividend of €0.017 per share) but make the actual payment conditional to the reassessment of the situation once the uncertainties caused by COVID-19 disappear, the earliest of which, in line with the European Central Bank’s recommendation, would be 1 October 2020.
• The bank’s shares edged 1.16%, as 197,952 shares changed hands over 61 transactions, closing at €0.85, over a total weekly turnover of €169,576.
• Likewise, on Thursday HSBC Bank Malta plc announced the delay of the dividend distribution to ensure that the banking system, deploys capital in support of the macro-economy. Therefore, the bank’s 2019 final dividend will be paid when it is appropriate to do so, but not before the fourth quarter of this year.  The board will re-examine the situation and will update the market accordingly. The bank has sufficient capital to support the previously announced dividend payment of 2019 – that of 2.1 cents per share (gross of tax).
• Nine deals involving 31,506 shares pushed the bank’s price to a positive 3.26%, reaching the €0.95 price level.
• The most liquid equity was Malta International Airport plc, as total turnover stood at €237,627. A total of 46,581 shares changed hands over 52 deals. On Monday, the equity declined to €4.96 despite reaching an intra-day high price of €5.50. The equity managed to recoup part of the loss, as it ended the week at €5.00, translating into a 3.85% fall in price.
• On Thursday, GO plc announced that it shall postpone the AGM indefinitely. The board further announced that due to the current extraordinary circumstances, the recommended dividend payment of €0.14 per share (net of tax), shall be re-evaluated.
• The equity was active on Monday, as three deals involving 10,060 shares were executed. The equity’s previous week’s closing price of €3.90 was not altered. Its subsidiary, BMIT Technologies plc performed well this week, as it registered a 2.51% change in price, to close at €0.490. A total of 65,485 shares were spread over five transactions.
• On Thursday, Grand Harbour Marina plc announced that due to the measures introduced by the Government of Malta and severe travel restrictions, the Pontoon and Superyacht visitors’ sector is expected to be impacted significantly. The company has forecasted a worst-case scenario, that of no income from the sector previously mentioned for the next six months, including September 2020. In this case, the company would still have sufficient resources to meet all its payments obligations – including salaries and annual bond interest payment. The company would also be able to fully redeem its current €15 million bond, maturing in 2027.
• No trading activity was recorded during the week.
• Simonds Farsons Cisk plc shares headed the list of fallers, as it registered an 8% downfall whilst trading twice on slim volume. The equity closed at €9.20 – the lowest price in 10 months.
• On Thursday, the Malta Properties plc announced that in the light of the current Covid-19 situation, the company shall be postponing its Annual General Meeting (AGM) to a future date when the situation is stable. The board decided to proceed with the payment of the dividend, which will be paid on June 1, 2020 to all listed shareholders as at April 28, 2020. Shareholders’ confirmation of this decision will be given at the AGM.
• The equity closed 2% in the red, as 88,370 shares changed hands across nine transactions. As a result, the price was down to €0.49 – equivalent to a 2% decline.
• The MSE Corporate Bonds Total Return Index closed broadly flat at 1,043.90 points. In the corporate bonds market, out of 48 active issues, 16 registered gains while another 20 lost ground. The best performer was the 4% International Hotel Investments plc Secured € 2026 as it closed 3.62% higher at €99.99. Conversely, the 5.25% Central Business Centres plc Unsecured € 2025 S2T1 lost 3.38%, ending the week at €100.00.
• In the sovereign debt market, the MSE MGS Total Return Index ended the week 19 points lower at 1,113.03 points. Meanwhile, the European Commission announced that it will issue up to €100 billion in loans for its member states as a financial aid for companies to reduce redundancies during the Covid-19 pandemic. Furthermore, the European Commission has approved a Maltese state aid scheme to support the economy in the context of the coronavirus outbreak. The scheme was approved under the State aid temporary framework to support the economy in the context of the COVID-19 outbreak. Executive vice-president Margrethe Vestager, in charge of competition policy, said that the €350 million Maltese scheme would enable public guarantees on loans to support the Maltese economy during the coronavirus outbreak. She further stated that it will help businesses cover immediate working capital needs and continue their activities in these difficult times.
• In the local sovereign market, 14 issues were active, six of which advanced while another five traded lower. The 2.3% MGS 2029 (II) headed the list of gainers, as it closed 1.11% higher at €117.56. On the other hand, 4.45% MGS 2032 (II) lost 1.23%, to close at €144.20.
• In the Prospects MTF market, four issues were active as the 5% Borgo Lifestyle Finance plc Secured Callable 2026-2029 closed higher at €95.00 while the other three closed unchanged.

Upcoming Events:
			Best Performers:
			1. FIM	+4.44%
			2. IHI	+4.39%
			3. TRI	+3.88%
	Due to the current Covid-19 pandemic, upcoming events shall be postponed to a future date, when circumstances allow.
			Worst Performers:
			1. SFC	-8.00%
			2. PZC	-4.08%
			3. MSC	-4.00%

 

 

 

	Price (€): 03.04.2020	Price (€): 27.03.2020	Weekly Change (%)	2020 Performance (%)
MSE Equity Total Return Index	7,862.881	7,880.005	-0.217	-18.229
BMIT Technologies plc	0.490	0.478	2.51	-5.769
Bank of Valletta plc	0.850	0.860	-1.16	-19.81
FIMBank plc (USD)	0.470	0.450	4.44	-21.67
GlobalCapital plc	0.230	0.230	0.00	-17.86
Grand Harbour Marina plc	0.750	0.750	0.00	36.36
GO plc	3.900	3.900	0.00	-8.45
Harvest Technology plc	1.460	1.500	-2.67	-2.67
HSBC Bank Malta plc	0.950	0.920	3.26	-26.92
International Hotel Investments plc	0.595	0.570	4.39	-28.31
Lombard Bank plc	2.000	2.000	0.00	-12.28
Loqus Holdings plc	0.080	0.080	0.00	24.03
MIDI plc	0.380	0.380	0.00	-29.63
Medserv plc	1.000	1.000	0.00	-9.09
Malta International Airport plc	5.000	5.200	-3.85	-27.54
Malita Investments plc	0.770	0.770	0.00	-14.44
Mapfre Middlesea plc	2.260	2.260	0.00	4.63
Malta Properties Company plc	0.490	0.500	-2.00	-22.22
Main Street Complex plc	0.480	0.500	-4.00	-20.00
MaltaPost plc	1.100	1.100	0.00	-16.03
PG plc	1.630	1.600	1.87	-11.41
Plaza Centres plc	0.940	0.980	-4.08	-6.93
RS2 Software plc	1.920	1.920	0.00	-10.28
Simonds Farsons Cisk plc	9.200	10.000	-8.00	-20.00
Santumas Shareholdings plc	1.360	1.360	0.00	-3.55
Tigné Mall plc	0.730	0.730	0.00	-18.89
Trident Estates plc	1.340	1.290	3.88	-13.55

 

 

 

 

* Trading commenced on January 7, 2020.

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].