MSE Daily Trading Report, 01 June 2020

The MSE Equity Total Return Index lost ground as it closed 0.454% lower at 8,175.899 points. Out of 10 active equities, four headed north while another three closed in the opposite direction. A total turnover of €378,336 was generated across 68 transactions.

The most liquid equity was Malta International Airport plc as total turnover stood at €126,515. A total of 31 deals involving 21,665 shares pushed the price by 0.86% into positive territory. During the session, the equity reached an intra-day high price of €6.00 but closed at €5.85

RS2 Software plc announced that the annual general meeting shall be held on July 30, 2020. The equity registered a positive 0.51% change in price as it reached the €1.96 price level. A total of 51,600 shares were spread across 12 transactions, generating a total turnover of €100,517.

In the property sector, three equities were active. A sole deal of 57 Santumas Shareholdings plc shares pushed the price 9.56% higher to €1.49. Tigne’ Mall plc was up by 2.56% as 94,650 shares changed hands over three deals. Total turnover amounted to €75,721. Meanwhile, one deal of 2,000 MIDI plc shares did not impact the equity’s previous closing price of €0.41.

Bank of Valletta plc was active but closed unchanged at €1.02. Three deals involving 6,383 shares were executed, worth €6,511.

Similarly, Simonds Farsons Cisk plc traded four times over a mix of 1,477 shares, worth €11,819. The equity’s previous closing price of €8.00 was not altered, despite reaching €8.25 during the session.

On the other side of the spectrum, International Hotel Investments plc headed the list of fallers with a 5.98% movement in price. Three deals involving 2,511 shares dragged the price to €0.55.

Telecommunications company, GO plc, announced that Cablenet Communication Systems Limited, a Cypriot telecommunications provider operating in and from Cyprus and in which the company holds 60.26% of the issued share capital, is in advanced preparations in respect of a proposed public issue in Malta of 4% unsecured bonds with an aggregate principal amount of up to €40,000,000.

Subject to approval of Cablenet, an application shall be submitted to the Maltese Listing Authority and the Malta Stock Exchange to request the admissibility to listing of the bonds and to be admitted to the official list of the Exchange. Moreover, a yet to be determined portion of the Bonds will be available for subscription by the Company’s shareholders on a preferential basis.

The equity registered a 1.1% drop in price, reaching the €3.60 price level. A total turnover of €10,006 was generated as 2,770 shares were spread over five deals.

Plaza Centres plc declined by 3.06% as 47,000 shares changed ownership across five transactions. The equity registered a total turnover of €44,961 as it closed at €0.95.

Last Friday, Medserv plc approved the audited consolidated financial statements for the financial year ended December 31, 2020. Total revenue for the year amounted to €68.73 million, translating into a 90% increase when compared to the previous year’s figure. Such increase is mainly attributable to the nearshore drilling project in Suriname which ended prematurely in December 2019. As a result, the ILSS reported an increase in revenue of €30.73 million, representing an increase of 143% over the previous year. The OCTG segment has also registered an increase in revenue of €1.83 million, which is equivalent to 13% increase when compared with last year.

Adjusted Earnings before interest, tax, depreciation and amortization (EBITDA) amounted to €12.72 million – a 74% increase from the previous year as a result of the growth in revenue. Forecasted results published on May 22,2019 showed an EBITDA of €14.13 million. A significant part of the variance in EBITDA is due to the transactional costs recognized during the reporting year in respect of the acquisition of AMT S.A. which was terminated on April 16, 2020.

After deducting the net finance costs amounting to €5.64 million, the Group registered a loss before tax of €2.55 million, versus an €8.83 million loss before tax recorded in the previous year, 2018. The Group registered negative earnings per share of €0.05c4 versus a negative earnings per share of €0.16c8 during the previous year.

These audited consolidated financial statements shall be submitted for the approval of the shareholders at the forthcoming Annual General Meeting, the date of which is yet to be determined due to the COVID19 restrictions.

Last Saturday, Medserv also published its interim report for 2020. Revenue for the first quarter of year 2020 was 29.6% lower than that the previous year’s figure as the Suriname drilling project ended in December 2019. Such loss in revenue was expected to be recovered from the new drilling projects that were scheduled to commence in Cyprus in the second quarter of year 2020. Due to the Covid-19 pandemic, this was postponed, resulting into the company revising downwards its budget revenue for the year 2020 to €26.5 million. Moreover, EBITDA for 2020 is estimated at €5.5 million, reflecting the impact of the postponement of drilling. These figures are the company’s projections for the current year however the full effect of this pandemic on the group and the market in which it operates are still very fluid. More detailed forecasts will be issued by the company in line with its obligation to publish a financial analysis summary by June 30, 2020.

In the Sovereign Debt market, five issues were active, of which two advanced while the 2.1% MGS 2039 (I) closed 2.27% lower at €127.00. The 4.5% MGS 2028 (II) headed the list of gainers as it closed 1.12% higher, to close at €135.00.

In the Corporate Debt market, out of 26 active issues, eight registered gains while the 3.5% Bank of Valletta plc € Notes 2030 S2 T1 lost 2.5%, ending the session at €97.50. The 4.35% Hudson Malta plc Unsecured € 2026 was the best performer as it closed at €102, translating into a 2% increase.

In the Prospects MTF market, two issues were active. The 5% Luxury Living Finance plc € Secured Bonds 2028 registered the best performance with a 1.01% increase, reaching its par value.

 

The Equities traded today were:

Symbol Code	Volume Traded	Value Traded	Trades	Closing Price	% Change
BOV	6,383	6,510.66	3	1.020	0.00
SFC	1,477	11,818.75	4	8.000	0.00
GO	2,770	10,006.20	5	3.600	-1.10
IHI	2,511	1,381.05	3	0.550	-5.98
PZC	47,000	44,961.36	5	0.950	-3.06
MIA	21,665	126,515.45	31	5.850	0.86
RS2	51,600	100,517.32	12	1.960	0.51
MDI	2,000	820.00	1	0.410	0.00
TML	94,650	75,720.75	3	0.800	2.56
STS	57	84.93	1	1.490	9.56

The Corporate Bonds traded today were:

	Closing Price	% Change
3.65% GAP Group plc Secured € 2022	100.900	0.00
4.4% Von der Heyden Group Finance plc Unsecured € 2024	100.000	0.00
6% International Hotel Investments plc € 2024	102.000	0.00
5.1% 1923 Investments plc Unsecured € 2024	98.250	0.00
4.25% Best Deal Properties Holding plc Secured € 2024	100.000	0.00
5.1% 6PM Holdings plc Unsecured € 2025	99.860	0.00
4.5% Hili Properties plc Unsecured € 2025	100.000	0.00
4.35% Hudson Malta plc Unsecured € 2026	102.000	2.00
4.25% Corinthia Finance plc Unsecured € 2026	100.000	0.00
4% Merkanti Holding plc Secured € 2026	100.400	0.40
3.9% Plaza Centres plc Unsecured € 2026	102.000	1.75
5% Dizz Finance plc Unsecured € 2026	97.500	0.00
3.25% AX Group plc Unsec Bds 2026 Series I	100.000	0.00
4% International Hotel Investments plc Unsecured € 2026	99.900	8.91
3.75% Mercury Projects Finance plc Secured € 2027	99.900	0.00
4.35% SD Finance plc Unsecured € 2027	100.000	0.00
4% Eden Finance plc Unsecured € 2027	101.000	0.00
3.5% Simonds Farsons Cisk plc Unsecured € 2027	107.010	0.00
4% Stivala Group Finance plc Secured € 2027	100.000	0.45
3.75% Bortex Group Finance plc Unsecured € 2027	102.000	0.00
3.85% Hili Finance Company plc Unsecured € 2028	98.500	0.01
4.15% Phoenicia Finance Company plc Unsecured € 2023-2028	98.200	0.00
3.65% Stivala Group Finance plc Secured € 2029	101.000	1.00
3.8% Hili Finance Company plc Unsecured € 2029	97.000	0.00
3.5% Bank of Valletta plc € Notes 2030 S1 T1	102.500	0.99
3.5% Bank of Valletta plc € Notes 2030 S2 T1	97.500	-2.50

The Government Stocks traded today were:

	Closing Price	% Change
4.5% MGS 2028 (II)	135.000	1.12
2.5% MGS 2036 (I)	128.100	0.00
2.1% MGS 2039 (I)	127.000	-2.27
3% MGS 2040 (I)	139.000	0.00
2.4% MGS 2041 (I)	132.000	0.38

Prospect Bonds traded today were:

	Closing Price	% Change
5% Luxury Living Finance plc € Secured Bonds 2028	100.000	1.01
5% Smartcare Finance plc Secured € 2029	100.150	0.15

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].