MSE Daily Trading Report, 03 August 2020

The MSE Equity Total Return Index returned to negative territory as it reached 7,986.194 points, translating into a 0.712% decline. Out of ten active equities, two headed north while another six closed in the opposite direction. A total turnover of €72,178 was generated across 32 transactions.

HSBC Bank Malta plc announced that the board approved the group and the bank interim condensed financial statements for the six-month period commencing January 1, 2020 to June 30, 2020. Profit before tax declined by €19.1m to €1.8m due to higher expected credit losses and lower revenue reflecting the impact of the Covid-19 outbreak. Similarly, revenue was down by 16% mainly due to revaluation losses within the Life Insurance subsidiary as a result of adverse market movements (equity and interest rates). Excluding the insurance subsidiary, revenue declined by 1%.

Expected credit losses increased by €9.7m to €8.7m due to the impact of the pandemic. In 2019 the bank benefited from a number of releases in the first half of the year. Operating expenses reduced by 5% to €51.1m compared with €53.6m in the same period in 2019, reflecting strong progress on the strategy announced in 2019. Profit attributable to shareholders of €1.2m for the six months ended June 30, 2020, resulted in earnings per share of 0.3 cents compared with 3.8 cents in the same period in 2019.

Common equity Tier 1 capital ratio increased by 0.2% from end of 2019 to 16.6% as at June 30, 2020, which is well above regulatory requirements. Total capital ratio increased to 19.3% compared to 19% at 31 December 2019. Return on equity for the first six months of the year stood at 0.5% compared with 5.8% for the same period in 2019.

In line with the European Central Bank recommendation that eurozone banks should not make dividend payments at this time, regardless of capital strength, no interim dividend is being declared. The board intends to provide an update on the dividend policy at the year-end results for 2020, when the economic impact of the Covid-19 outbreak is better understood. The board will also take into account the views of the shareholders, the interests of other stakeholders and other factors, including the bank’s financial performance and capital position.

The bank did not record any trading activity during the session.

Its peer, Bank of Valletta plc closed 1.02% lower as it reached the €0.97 price level. Five deals involving 6,234 share generated a total turnover of €6,063.

BMIT Technologies plc registered the highest liquidity as total turnover amounted to €27,770. Eight deals involving 58,000 shares pushed the priced 1.25% higher to €0.486. Its parent company, GO plc, lost 4.07% as 494 shares were spread over four deals. The equity generated a total turnover of €1,661 as it ended the session at €3.30.

Another positive performer was Malta International Airport plc as it managed to recoup some lost ground, reaching the €5.45 price level. Total turnover stood at €17,883 as 3,350 shares changed hands across four transactions.

International Hotel Investments plc was active but closed unchanged at €0.53. Six deals involving 27,277 shares were executed, worth €14,462.

In the property sector, MIDI plc declined by 0.53% to €0.378 over a single transaction of 5,000 shares. The equity generated a total turnover of €1,890. Similarly, Tigne’ Mall plc closed 5.88% lower at €0.80 over a sole deal of 1,450 shares. Total turnover stood at €1,160.

Main Street Complex plc traded once over 2,300 shares, resulting into the largest decline in price of 14.04%. The equity ended the session at €0.49 while total turnover amounted to €1,127.

A sole deal of 50 Harvest Technologies plc dragged the price by 0.68% into the red, to close at €1.47.

Elsewhere, Simonds Farsons Cisk plc was active but closed flat at €8.00.

In the Corporate Debt market, out of 10 active issues, five registered gains while another three lost ground. The 3.75% Tumas Investments plc Unsecured € 2027 headed the list of gainers as it closed 3.27% higher at €103.90. On the other hand, the 4% Eden Finance plc Unsecured € 2027 closed 0.98% lower, reaching its par value.

In the Sovereign Bond market, five issues were active of which two declined while the 2.1% MGS 2039 (I) was the only positive performer as it closed at €130.00. This translates into a 4.84% movement in price. Conversely, the 3% MGS 2040 (I) lost 0.7%, ending the session at €141.00.

In the Prospects MTF market, two issues were active but did not record any movement in price. The 5.5% IG Finance plc € Unsecured 2024-2027 registered a total turnover of €2,000 and remained flat at par. The 3% D Foods Finance plc Secured € Convertible Notes 2026-2030 Tranche 2020/1 has been granted admission to the official list of the Malta Stock Exchange under the Institutional Financial Securities Market (IFSM). Trading in this security is expected to commence tomorrow.

 

The Equities traded today were:

Symbol Code	Volume Traded	Value Traded	Trades	Closing Price	% Change
BOV	6,234	6,062.76	5	0.970	-1.02
SFC	11	88.00	1	8.000	0.00
GO	494	1,661.40	4	3.300	-4.07
IHI	27,277	14,461.81	6	0.530	0.00
MIA	3,350	17,883.00	4	5.450	0.93
MDI	5,000	1,890.00	1	0.378	-0.53
TML	1,450	1,160.00	1	0.800	-5.88
MSC	2,300	1,127.00	1	0.490	-14.04
BMIT	58,000	27,770.32	8	0.486	1.25
HRV	50	73.50	1	1.470	-0.68

The Corporate Bonds traded today were:

	Closing Price	% Change
5% Mediterranean Investments Holding plc Unsecured € 2022	99.990	0.04
6% International Hotel Investments plc € 2024	102.100	0.10
5.1% 1923 Investments plc Unsecured € 2024	99.950	-0.05
4.25% Best Deal Properties Holding plc Secured € 2024	103.000	0.00
5.75% International Hotel Investments plc Unsecured € 2025	101.000	0.50
5.1% 6PM Holdings plc Unsecured € 2025	100.000	0.00
4% Eden Finance plc Unsecured € 2027	100.000	-0.98
3.75% Tumas Investments plc Unsecured € 2027	103.900	3.27
4% Stivala Group Finance plc Secured € 2027	101.500	-0.49
3.85% Hili Finance Company plc Unsecured € 2028	97.990	3.15

The Government Stocks traded today were:

	Closing Price	% Change
5.2% MGS 2031 (I)	148.000	0.00
4.45% MGS 2032 (II)	142.000	-0.62
2.5% MGS 2036 (I)	129.000	0.00
2.1% MGS 2039 (I)	130.000	4.84
3% MGS 2040 (I)	141.000	-0.70

The Prospects MTF bonds traded today were:

	Closing Price	% Change
5.5% IG Finance plc € Unsecured 2024-2027	100.000	0.00
5% HH Finance Plc Unsecured Euro Bonds 2023-2028	99.740	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].