MSE Daily Trading Report, 31 July 2020

The MSE Equity Total Return Index regained some ground as it closed at 8,043.488 points – a 0.087% increase. Seventeen trades were executed through seven equities which together generated a total turnover of €75,552.

The banking industry was in demand as all four traded banks were traded. HSBC Bank Malta plc closed 1.09% higher at €0.93. On the other hand, both Lombard Bank Malta plc and FIMBank plc closed lower. The former bank’s equity price decreased by 0.97% to reach the price level of €2.04. The latter bank plummeted by 9.52% to close at $0.38.

Finally, Bank of Valletta plc announced that the board approved the group and bank condensed interim financial statements for the six-month financial period commencing January 1, 2020 to June 30, 2020.  Profit before tax for the six months declined by 74.6% to €13.8 million (June 2019: €54.3 million). This represents an annualised return on equity (pre-tax) of 2.6%. Results for the first half of the year inevitably include the negative impact of the Covid-19 as it caused more than half of the drop in profit, directly or indirectly.

Operating profit declined by 70% from €41.2 million recording during the previous year’s half-year period to €12.4 million. Revenue is down across all streams as the pandemic adversely impacted most of the revenue generating areas coupled with the effect of de-risking as the bank exited business lines and customers outside the revised risk appetite. Net interest income is €5.3 million lower than 2019’s half-year figure as it stood at €72.3 million, which remains the main revenue driver.

The group remains highly liquid with cash and short term funds increasing by 4.3% to €178.3 million since December 2019. The asset liquidity of the bank’s portfolio remains high with more than 90% in A- or higher.

Equity as at end June 2020 is marginally higher than December 2019 and stands at €1.1 billion. The group’s capital position remains strong, with a CET 1 ratio as at June 2020 of 19.8%, in line with the group’s risk appetite and comfortably above the minimum regulatory requirements.

The board, taking cognisance of supervisory guidance, has resolved not to declare an interim dividend. The bank shall be availing itself of the extension period granted and will be holding the Annual General Meeting on November 26, 2020.

The share price had a mere loss of 0.41% to end today’s session at €0.98.

Simonds Farsons Cisk plc had the best performance. The company’s share price amplified by 5.96% over a single trade – the price closed at €8.00. Similarly, Malta International Airport plc’s equity price regained part of yesterday’s loss as the price incremented by 1.89% to close at €5.40.

RS2 Software plc shares traded unchanged.

In the Corporate Debt market, 17 issues were active, of which six registered gains while another three lost ground. The 4.4% Von der Heyden Group Finance plc Unsecured € 2024 headed the list of gainers with a 1.5% change in price, to close at €101.50. On the other hand, the 3.65% GAP Group plc Secured € 2022 lost 2.29%, ending the session at €100.20.

In the Sovereign Bond market, 12 issues were active. Three issues closed in the green while seven closed in negative territory. The 5.25% MGS 2030 (I) closed 0.69% higher at €148.01 while the 2.1% MGS 2039 (I) declined by 4.62%, to close at €124.00.

In the Prospects MTF market there were three active issues. The only bond that registered a change in price was the 5.5% IG Finance plc € Unsecured 2024-2027 as two trades reduced the price by 1.96% to close at par value.

 

The Equities traded today were:

Symbol Code	Volume Traded	Value Traded	Trades	Closing Price	% Change
BOV	5,264	5,174.70	2	0.980	-0.41
HSB	3,600	3,276.90	3	0.930	1.09
LOM	2,086	4,264.16	2	2.040	-0.97
SFC	2,038	16,304.00	1	8.000	5.96
FIM	42,500	13,752.87	2	0.380	-9.52
MIA	3,518	18,517.60	3	5.400	1.89
RS2	6,200	14,261.30	4	2.360	0.00

 

 Corporate Bonds traded today were:

	Closing Price	% Change
5.8% International Hotel Investments plc 2021	100.500	0.00
3.65% GAP Group plc Secured € 2022	100.200	-2.29
4.4% Von der Heyden Group Finance plc Unsecured € 2024	101.500	1.50
6% International Hotel Investments plc € 2024	102.000	0.49
5% Tumas Investments plc Unsecured € 2024	103.700	0.00
4.25% Best Deal Properties Holding plc Secured € 2024	103.000	0.01
5.75% International Hotel Investments plc Unsecured € 2025	100.500	-1.47
4.5% Izola Bank plc € Unsecured 2025	101.000	0.00
5.1% 6PM Holdings plc Unsecured € 2025	100.000	0.00
4.5% Hili Properties plc Unsecured € 2025	101.000	0.00
4% MIDI plc Secured € 2026	101.100	1.03
4% International Hotel Investments plc Secured € 2026	100.650	0.05
4.8% Mediterranean Maritime Hub Finance plc Unsecured € 2026	97.950	0.01
3.75% Premier Capital plc Unsecured € 2026	101.550	0.00
4.35% SD Finance plc Unsecured € 2027	100.010	-1.47
3.75% Tumas Investments plc Unsecured € 2027	100.610	0.00
3.75% AX Group plc Unsec Bds 2029 Series II	100.550	0.00

 

 The Government Stocks traded today were:

	Closing Price	% Change
4.3% MGS 2022 (II)	107.780	-0.02
5.5% MGS 2023 (I)	116.020	0.00
4.8% MGS 2028 (I)	135.430	-0.05
5.25% MGS 2030 (I)	148.010	0.69
4.45% MGS 2032 (II)	142.890	-0.77
4.3% MGS 2033 (I)	150.000	0.00
4.1% MGS 2034 (I)	142.220	0.44
2.5% MGS 2036 (I)	129.000	-1.53
2.1% MGS 2039 (I)	124.000	-4.62
3% MGS 2040 (I)	142.000	-3.73
2.4% MGS 2041 (I)	135.500	0.37
1.50% MGS 2045 (I)	112.500	-1.10

 

The Prospects MTF bonds traded today were:

	Closing Price	% Change
5.5% IG Finance plc € Unsecured 2024-2027	100.000	-1.96%
4.75% Orion Finance plc € Unsecured 2027	100.000	0.00%
5% FES Finance plc Secured € 2029	99.500	0.00%

 

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].