MSE Trading Report for Week ending 12 June 2020
June 13, 2020
| MSE Equity Total Return Index: |
| Chart of the Week: HSBC Bank Malta plc |
| Highlights: |
- The MSE Equity Total Return Index closed the week 0.4% lower following two weeks of gains. The local equities’ index finished at 8,292.737 points, as losses across eight equities were enough to outweigh gains in another nine. Trading value reached nearly €1m, as 244 trades were recorded across 23 equities.
- In the banking sector, Bank of Valletta plc (BOV) closed flat after starting the week on a positive note, yet it failed to hold on to its positive start, as it lost ground mid-week. BOV shares traded at a weekly high of €1.02 and a low of €1, the week’s closing price. A total of 44 transactions worth nearly €90,000 were recorded.
- HSBC Bank Malta plc (HSBC) shares were among the worst performers this week, as the banking equity shed 4%. HSBC kicked off the week 2% lower, while it recovered the lost ground on Tuesday. However, as demand for the equity declined towards the second half of the trading week, the equity returned to the €0.94 level. Almost €72,000 was traded over 26 deals.
- Meanwhile, Lombard Bank plc gained 1% to finish the week at €2.20, however only one thin trade worth €220 was recorded. Likewise, Mapfre Middlesea plc was also active across one small trade of 510 shares. The share price of the insurance operator remained unchanged at €2.28.
- The other financial equity, FIMBank plc gained 5.3% to close at $0.40.On the week, trading volume declined from nearly 52,000 shares to 13,600 shares traded this week.
- In the property sector, Tigne’ Mall plc gained 6.3% or €0.05 to return to the €0.85 level. Two trades of 5,072 shares were executed in the opening two sessions. No further trading took place in the equity during the other three trading sessions.
- Malta International Airport plc (MIA) shares shed 1.7% to finish at €5.65 after touching a weekly low of €5.60. On Monday the equity traded at a weekly high of €5.90 but investors succumbed to selling pressure, as the equity declined mid-week after no trades were recorded on Tuesday.
- On Thursday, MIA announced the traffic results for the month of May. Due to the COVID-19 pandemic and consequent travel ban, it was an unusually quiet month, with just 3,081 passengers. This translates into a decrease of more than 670,000 passenger movements when compared to May 2019. As air traffic to and from Malta remained at an almost complete standstill for the second full month, aircraft movements throughout May amounted to merely 283 take-offs and landings. For the month of May, 43% of the flights were humanitarian and repatriation, ferrying passengers to and from more than 10 countries. The rest were cargo flights, which registered an increase of 11% in movements over the same month last year.
- The airport shall resume operations on July 1, 2020. Six airlines will be offering direct connections to 17 airports in nine countries and regions, including Sicily, Germany, Switzerland and Luxembourg, for the period between July and October.
- On Tuesday Medserv plc was notified that an agreement was entered into by and between, on the one part, Mr Anthony S. Diacono (31.17% present shareholding) and, on the other part, Malampaya Investments Limited (34.33% present shareholding), which is wholly and beneficially owned by Anthony J. Duncan. Each of the parties granted to each other the option to acquire their shareholding in the company.
- This option is only triggered on the demise of either Anthony S. Diacono or Anthony J. Duncan (whichever occurs first) and is exercisable for a period of one year thereafter. Upon the exercise, by either Anthony S. Diacono or Malampaya Investments Limited, of the option, the person exercising the option would have a resultant shareholding of 65.50%. The rationale behind this agreement is to further strengthen the succession plan of the two major shareholders and to ensure a smooth transition should this unfortunate event take place at a time when they are still major shareholders in the company.
- Before the news the equity was down by 3% while it shed nearly 8% yesterday. The equity closed the week at €0.60.
- The MSE MGS Total Return Index declined by 70 basis points to close at 1,108.86 points. Out of 15 active issues, eight declined and three gained ground. The long-dated 2.4% MGS 2041 gained 1.6% while the 4.65% MGS 2032 declined by nearly 5%.
- On the other hand, the MSE Corporate Bonds Total Return Index registered a 1% increase as it reached 1,082.35 points. A total of 43 issues were active, of which 27 gained and five declined.
- In the Prospects MTF market, eight issues were active. Once again the 5% Busy Bee Finance Company plc Unsecured € 2029 was the most liquid, as two trades of €25,000 nominal were recorded.
| Upcoming Events |
| Price (€): 12.06.2020 | Price (€): 05.06.2020 | Weekly Change (%) | 2020 Performance (%) | |
| MSE Equity Total Return Index | 8,292.737 | 8,322.868 | -0.362 | -13.758 |
| BMIT Technologies plc | 0.490 | 0.486 | 0.82 | -5.77 |
|---|---|---|---|---|
| Bank of Valletta plc | 1.000 | 1.000 | 0.00 | -5.66 |
| FIMBank plc (USD) | 0.400 | 0.380 | 5.26 | -33.33 |
| GlobalCapital plc | 0.330 | 0.330 | 0.00 | 17.86 |
| Grand Harbour Marina plc | 0.720 | 0.720 | 0.00 | 30.91 |
| GO plc | 3.520 | 3.600 | -2.22 | -17.37 |
| Harvest Technology plc | 1.450 | 1.470 | -1.36 | -3.33 |
| HSBC Bank Malta plc | 0.940 | 0.980 | -4.08 | -27.69 |
| International Hotel Investments plc | 0.595 | 0.585 | 1.71 | -28.31 |
| Lombard Bank plc | 2.200 | 2.180 | 0.92 | -3.51 |
| Loqus Holdings plc | 0.097 | 0.097 | 0.00 | 50.39 |
| MIDI plc | 0.400 | 0.380 | 5.26 | -25.93 |
| Medserv plc | 0.600 | 0.670 | -10.45 | -45.45 |
| Malta International Airport plc | 5.650 | 5.750 | -1.74 | -18.12 |
| Malita Investments plc | 0.890 | 0.890 | 0.00 | -1.11 |
| Mapfre Middlesea plc | 2.280 | 2.280 | 0.00 | 5.56 |
| Malta Properties Company plc | 0.600 | 0.620 | -3.23 | -4.76 |
| Main Street Complex plc | 0.520 | 0.496 | 4.84 | -13.33 |
| MaltaPost plc | 1.200 | 1.170 | 2.56 | -8.40 |
| PG plc | 2.000 | 2.000 | 0.00 | 8.70 |
| Plaza Centres plc | 0.980 | 0.980 | 0.00 | -2.97 |
| RS2 Software plc | 2.320 | 2.300 | 0.87 | 8.41 |
| Simonds Farsons Cisk plc | 7.950 | 8.200 | -3.05 | -30.87 |
| Santumas Shareholdings plc | 1.490 | 1.490 | 0.00 | 5.67 |
| Tigné Mall plc | 0.850 | 0.800 | 6.25 | -5.56 |
| Trident Estates plc | 1.540 | 1.550 | -0.65 | -0.65 |
* 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].