MSE Trading Report for Week ending 29 May 2020

MSE Equity Total Return Index:

Chart of the Week: Malta International Airport plc

Highlights:
  • The MSE Equity Total Return Index gained 2% to end the week at 8,213.194 points. A total of 17 equities were active, of which five headed north while another six closed in the opposite direction. A total weekly turnover of €937,794 was generated across 207 transactions.
  • Malta International Airport plc was the best performer and registered the highest liquidity as total weekly turnover stood at €354,743. Last Friday, the equity reached €5.85 during the session but ended the week at a 12-week high price of €5.80 – translating into a 17.4% gain. This was the result of 65,481 shares spread over 69 deals. On a year-to-date basis, the equity is still down by 16%.
  • On Tuesday, HSBC Bank Malta plc issued an announcement following reports in the local media regarding an article published by an international news agency speculating on the HSBC Group’s future global strategy. The bank informed the market that it has no information which requires a further company announcement and that it will not  comment on speculative stories. The bank’s shares were up by 3%, reaching the €0.99 price level. A total of 31,376 shares changed hands across 15 transactions.
  • Its peer, Bank of Valletta plc reached €1.04 on Monday but did not sustain the gain until end of week as it closed flat at €1.02. A total of 25 deals involving 124,876 shares were executed.
  • On Wednesday, Simonds Farsons Cisk plc announced that the board approved the annual report and consolidated financial statements for the year ended January 31, 2020. This shall be submitted for shareholders’ approval at the forthcoming Annual General Meeting (AGM) to be held on a date not yet confirmed.
    • An increase of 3.7% in turnover was recorded as it stood at €103.5 million. While the group registered a turnover growth across all segments, reported pre-tax profits were 12.6% lower than the previous year, as it reached €12.3 million. The positive economic performance experienced by the country over the past years started to show signs of levelling off during the end of the financial year. A gradual slow-down in the payment patters of its customers were observed, which deteriorated further since the financial year end.  These factors represent the major contributing reasons for the lower profits reported by the group in this financial year.
    • Earnings before interest, tax, depreciation and amortisation (EBITDA) amounted to €22.7 million, translating into a 2% decline when compared to the previous year’s figure. This reflects the lower reported profit net of the impact of the introduction of IFRS16 for the ‘Right-of-use assets’. Net borrowings were up by €1 million, while following the inclusion of the liabilities in accordance with IFRS 16, the gearing ratio increased to 25.9% as compared to 23.4% for 2019. Total equity of the Group increased by 7.4% to €116 million, reflecting the profit generated net of the dividends distributed during the year.
    • An interim net dividend of €1,000,000 (€0.0333 per ordinary share) was approved at the board meeting held on September 25, 2019 and distributed to shareholders on October 16, 2019. In light of the current unprecedented times, the board does not consider it appropriate at this time to recommend the payment of a final dividend to the forthcoming AGM.
    • The equity reached €8.30 on Monday but did not manage to sustain the gain, as it closed 0.6% lower at €8.00. A total of 7,804 shares were spread across 16 transactions.
  • Last Friday, MaltaPost plc announced the board’s approval of  the unaudited condensed consolidated interim financial statements for the half-year period ended March 31, 2020. The company registered a profit before tax of €1.41 million, which is similar to the previous year’s figure of €1.37 million. Total revenue was up by 1.18% as it amounted to €17.2 million, following the local tariff revisions and increased parcel businesses.
    • The company’s increase in expenditure remained relatively unchanged at €15.9 million, translating into a 1% increase. Meanwhile, the cost to income ratio improved to 92.1% from 92.5% registered during the same period of the previous year. The shareholders’ funds remained stable at €26.3 million – equivalent to a €0.6 million decline.
    • These results need to be considered in light of the current Covid-19 pandemic. Significant declines were registered in March, in both postal and non-postal revenues, with the impact being most noticeable when very stringent measures, including an air travel ban, were introduced.
    • The equity did not record any trading activity during the week.
  • The MSE MGS Total Return Index advanced by 0.73% as it closed at 1,115.22 points. A total of 17 issues were active, of which 10 advanced while six closed in the red. The 2.4% MGS 2041 (I) was the best performer, as it closed 6.9% higher at €131.50. On the other hand, the 2.3% MGS 2029 (II) lost 5.1%, ending the week at €115.02.
  • The MSE Corporate Bonds Total Return Index closed 0.25% lower as it reached 1,059.86 points. Out of 40 active issues, 19 registered gains while another 10 lost ground. The 3.85% Hili Finance plc Unsecured Bonds 2028 headed the list of gainers as it closed 3.7% higher at €98.49. Conversely, the 4% International Hotel Investments plc Unsecured € 2026 closed 7.3% lower at €91.73.
  • In the Prospects MTF market, six issues were active. The 5.5% Anchovy Studios plc € Unsecured 2027 was the most liquid with a total turnover of €10,000.

 

Upcoming Events
Best Performers:
1. MIA+17.41%
10 JUN 2020US: FED – Monetary Policy Meeting2. IHI+8.33%
15 JUN 2020MT: MIDI plc – Annual General Meeting3. HSBC+3.13%
28 JUL 2020MT: Malita Investments plc – Annual General Meeting
28 JUL 2020MT: Plaza plc – Annual General MeetingWorst Performers:
29 JUL 2020MT: MaIta International Airport plc – Annual General Meeting1. FIM-14.89%
2. TML-8.24%
3. GHM-4.00%

 

 

 

Price (€): 29.05.2020Price (€): 22.05.2020Weekly Change (%)2020 Performance (%)
MSE Equity Total Return Index8,213.194 8,060.9371.889-14.586
BMIT Technologies plc0.4780.4780.00-8.08
Bank of Valletta plc1.0201.0200.00-3.77
FIMBank plc (USD)0.4000.470-14.89-33.33
GlobalCapital plc0.3300.3300.0017.86
Grand Harbour Marina plc0.7200.750-4.0030.91
GO plc3.6403.6001.11-14.55
Harvest Technology plc1.4901.4900.00 -0.67
HSBC Bank Malta plc0.9900.9603.13-23.85
International Hotel Investments plc0.5850.5408.33-29.52
Lombard Bank plc2.0602.080-0.96-9.65
Loqus Holdings plc0.0970.0970.0050.39
MIDI plc0.4100.420-2.38-24.07
Medserv plc0.7000.7000.00-36.36
Malta International Airport plc5.8004.94017.41-15.94
Malita Investments plc0.8900.8900.00-1.11
Mapfre Middlesea plc2.2802.2800.005.56
Malta Properties Company plc0.5400.5400.00-14.29
Main Street Complex plc0.4960.4960.00-17.33
MaltaPost plc1.1701.1700.00-10.69
PG plc1.9501.9002.635.98
Plaza Centres plc0.9800.9800.00-2.97
RS2 Software plc1.9501.9500.00-8.88
Simonds Farsons Cisk plc8.0008.050-0.62-30.43
Santumas Shareholdings plc1.3601.3600.00-3.55
Tigné Mall plc0.7800.850-8.24-13.33
Trident Estates plc1.5501.5500.000.00

 

 

 

 

* 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].