MSE Index drifts lower

MSE Daily Trading Report, 20 May 2020

The MSE Equity Total Return Index registered a further 0.136% decline as it reached 8,093.904 points. Out of 10 active issues, three traded higher while another five lost ground. A total turnover of €158,263 was generated across 33 transactions.

In the banking industry, HSBC Bank Malta plc was up by 1.57% as 15,100 shares were spread across three transactions. The bank closed at €0.97 while total turnover stood at €14,649.

Lombard Bank Malta plc announced its interim director’ statement and Covid-19 update. Financial performance is expected to be negatively impacted since economic forecasts are suggesting a contraction in the local economy during 2020. Though it is unlikely that the bank’s original objectives will be achieved, it is not considered prudent to attempt any medium-term forecasts, given the current level of uncertainty. Apart from the reduction in international trade and increased caution by local businesses, other relevant factors are still evolving. Such as an increased in unemployment together with a subdued business sentiment.

Some highlights taken from the latest financial information are relevant. Net interest income declined marginally due to higher interest payable on increased volumes of customer deposits and pressure from negative interest rates on excess liquidity. Fees and commission also decreased as the second quarter progress. Likewise, transactions banking activity and international payments experienced lower volumes.

Meanwhile costs remain under control and in line with expectations.  Net loans and advances to customers remained virtually unchanged and customer deposits continued to increase from the end of the previous year. The bank maintains a strong capital ratio, which is well above the minimum regulatory requirements.

The bank’s balance sheet is still strong with total assets at the same levels of the previous year, while healthy liquidity ratios continues to be actively managed. Loans to deposits ratio stands at a prudent 59%. Loans and advances portfolio includes facilities for medium-term projects which should not be unduly impacted and to date, the bank has not experienced any need to increases provisions for expected credit losses as a result of the current situation. The bank is well equipped to increase provisions should the need arise such that the repayment ability of its borrowing customers becomes impaired. Meanwhile, the bank has introduced its own support measures to complement the Government’s measures to assist the economy.

Despite the challenges being faced by the bank’s main subsidiary – MaltaPost plc, the company still continued to deliver postal services uninterruptedly, except for minor disruptions with respect to health and safety issues. However, other operational activity areas have been severely impacted, not least by the sharp decline in flights to and from Malta. This unplanned interruption has negatively affected some of its subsidiary’s revenue streams, which are being rigorously mitigated through the efficient and judicious management of costs, together with other related efficiencies.

The bank registered a 0.95% decline as it ended the session at €2.08. Two deals involving 10,000 shares were executed, worth €20,800.

MaltaPost plc was down by 3.31% as 15,200 shares changed hands over three deals. The equity closed at €1.17 while total turnover amounted to €18,094.

The highest liquidity was recorded by Malta International Airport plc as total turnover stood at €42,726. This was the result of 13 deals involving a mix of 8,520 shares. The equity’s price declined by 0.99% to €5.00.

Retail conglomerate, PG plc¸ ended the session at €1.88, translating into positive 0.53% change in price. A total turnover of €8,729 was generated as 4,643 shares changed ownership across four transactions.

Telecommunications company, GO plc, was active but closed unchanged at €3.56. Four deals involving 10,368 shares generated a total turnover of €37,049.

One deal of 6,000 International Hotel Investments plc shares, worth €3,390, dragged the price by 0.88% into the red. The equity ended the session at the €0.565 price level.

In the property sector, Malta Properties Company plc traded once over 2,550 shares, worth €1,377. As a result, the equity closed 6.9% lower at €0.54. Meanwhile, a sole deal of 11,000 Malita Investments plc shares did not impact its previous closing price of €0.89. The equity registered a total turnover of €9,790.

The top performer was GlobalCapital plc as it recorded a double-digit gain of 24.35%. A single transactions of 5,800 shares pushed the price to €0.286, generating a total turnover of €1,659.

In the Sovereign Debt market, nine issues were active, of which three advanced while another five closed in the red. The 3% MGS 2040 (I) headed the list of gainers with a 1.53% movement in price, to close at €133.00. Conversely, the 4.3% MGS 2033 (I) dropped by 6.3%, ending the session at €141.49.

In the Corporate Debt market, out of 12 active issues, two registered gains while another five declined. The 4% SP Finance plc Secured EUR Bonds 2029 was up by 0.2% as it reached its par value. On the other hand, the 4% International Hotel Investments plc Secured € 2026 lost 1.24%, to close at €98.75.

In the Prospects MTF market, three issues were active of which two traded higher while one closed unchanged. The 5% JD Capital plc Unsecured € Bonds 2028 registered the best performance with a 0.51% change, to close at €98.50.

 

The Equities traded today were:

Symbol CodeVolume TradedValue TradedTradesClosing Price% Change
HSB15,10014,649.0030.9701.57
LOM10,00020,800.0022.080-0.95
GO10,36837,049.4443.5600.00
IHI6,0003,390.0010.565-0.88
GCL5,8001,658.8010.28624.35
MIA8,52042,726.00135.000-0.99
MTP15,20018,094.0031.170-3.31
MLT11,0009,790.0010.8900.00
MPC2,5501,377.0010.540-6.90
PG4,6438,728.8441.8800.53

The Corporate Bonds traded today were:

Closing Price% Change
6% Medserv plc Sec. & Grntd €  Notes 2020-2023 S1 T197.0000.00
5.1% 6PM Holdings plc Unsecured € 202599.6000.00
4.5% Hili Properties plc Unsecured € 202598.000-2.00
4.25% Corinthia Finance plc Unsecured € 2026100.0000.00
4% International Hotel Investments plc Secured € 202698.750-1.24
4% Merkanti Holding plc Secured € 202699.940-0.06
3.75% Mercury Projects Finance plc Secured € 202799.9500.00
4.35% SD Finance plc Unsecured € 202799.990-0.21
3.85% Hili Finance Company plc Unsecured € 202895.0000.00
4% SP Finance plc Secured EUR Bonds 2029100.0000.20
3.75% TUM Finance plc Secured € 2029100.0000.01
3.65% Stivala Group Finance plc Secured € 2029100.200-0.30

The Government Stocks traded today were:

Closing Price% Change
5.5% MGS 2023 (I)116.770-1.00
4.8% MGS 2028 (I)134.400-4.34
2.3% MGS 2029 (II)117.0901.49
5.1% MGS 2029 (I)140.9000.00
5.25% MGS 2030 (I)143.710-0.44
4.3% MGS 2033 (I)141.490-6.30
2.1% MGS 2039 (I)127.000-1.55
3% MGS 2040 (I)133.0001.53
2.4% MGS 2041 (I)123.0000.17

The Prospects MTF bonds traded today were:

Closing Price% Change
5.5% Yacht Lift Malta Plc Secured Callable Bonds € 2021-2025100.0000.00%
5% JD Capital plc Unsecured € Bonds 202898.5000.51%
5% Horizon Finance plc Secured Callable € Bonds 2026-2029100.0000.50%

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].