MSE Trading Report for Week ending 14 August 2020

• The MSE Equity Total Return Index extended the previous week’s decline by a further 2.38%, as it reached 7,572.779 points. Out of 20 active equities, 15 drifted lower while four gained ground. A total weekly turnover of €0.7 million was generated across 170 transactions.
• On Thursday, Malta International Airport plc announced its July results.
  • The airport registered 152,818 passenger movements last month, translating in a drop of 80.9% in traffic when compared to July 2019.
  • Last July’s full-month traffic was roughly equal to the number of passengers registered in the first week of July 2019. This contraction in passenger traffic was observed together with a drop of 70.3% in aircraft movements and a 72.1% decline in seat capacity.
  • The seat load factor (SLF) for the month, measuring the percentage of occupied seats on flights operated to and from Malta International Airport, stood at 59.7%.
  • A passenger performance analysis conducted by Airports Council International (ACI), showed that, on average, European airports registered a 78% decrease in passenger numbers last July.
  • According to the same analysis, Italy, Germany, the United Kingdom and France, all of which were among Malta International Airport’s top five markets for July 2020, reported drops in passenger numbers that ranged between 74% and 87%.
  • MIA traded 38 times over a spread of 24,554 shares, worth €119,398. During the week, the equity reached an intra-day low-price of €4.74 but managed to recoup part of the loss as it closed at €5.00 – equivalent to a 3.9% decline on the week.
• International Hotel Investments plc reached an all-time-low closing price of €0.48, as 23,157 shares changed ownership over 10 deals. This translates into an 8.6% change in price.
• On Monday, the board of Malta Properties Company plc approved the group interim unaudited financial statements for the six-month period ended June 30, 2020.
  • Revenue from the leasing of its properties declined by 7.7% to €1.6 million when compared to the first half of 2019. This was due to properties which have been vacated and have either been sold or are subject to a promise of sale, netted off by inflationary increases.
  • Revenue is expected to increase once the Zejtun development is completed, the Swatar property is acquired, and in line with inflation.
  • During the first half of the year, the group’s operating profit stood at €1.15 million, translating into a 14.4% decline when compared to the same period of 2019.
  • Administrative expenses increased by 16.3% to €0.46 million as a result of the group’s increase in operations and business development activity.
  • Finance costs remained in line with the prior year and stood at €0.24 million.
  • Profit before tax for the period ended June 30, 2020, amounted to €0.7 million, equivalent to a 7.9% decrease when compared to the same period last year.
  • Earnings per shares remained unchanged at €0.007. The group continued to deliver a satisfactory financial performance with a strong financial position.
  • The equity was the most liquid with a total turnover of €154,384. A total of 288,000 shares changed hands over 16 deals, pushing the price 3.9% higher to €0.54.
• On Monday, Tigne’ Mall plc announced that the board is scheduled to meet on August 28, 2020 to consider and, if deemed fit, approve the interim financial statements for the half-year period ending June 30, 2020.
  • The company also announced that due to the current situation, the company will be holding this year’s Annual General Meeting remotely on September 9, 2020.
  • The equity was down by 12.5% to €0.70 – the lowest price in over five years. A total of 16,440 shares changed ownership across four transactions.
• On Thursday, the board of FIMBank plc approved the consolidated and the bank’s interim financial statements for the half-year period ended June 30, 2020.
  • The group reported a loss before tax of $15.2 million versus a profit before tax of $9.6 million registered in 2019.
  • Higher impairment charges and fair value adjustments amplified the impact of the Covid-19 pandemic on the group’s performance.
  • The group’s net operating income declined by $5.2 million to $22.6 million, translating into a 19% decline.
  • Net interest income increased by 4% to $16.6 million, as continued improvements in the cost of funding structure of the group offset the reduction in interest income from lower commercial asset levels and higher liquidity assets.
  • Dividend income decreased drastically from $3.9 million to $0.2 million as the group reduced its investment in a trade-asset fund which contributed most of the dividend income in the prior period.
  • As at June 30, 2020, total consolidated assets stood at $1.74 billion, equivalent to an 8% decrease from the $1.89 billion recorded at end of 2019.
  • Similarly, total consolidated liabilities, as at June 30, 2020 declined by 8% to $1.48 billion, versus the $1.61 billion reported at end of 2019.
  • Group equity as at financial reporting date stood at $259 million, with CET1 and CAR ratios standing at 18.0%, compared to a 16.9% recorded in December 2019. The changes in equity reflect the loss for the first six months of the year and other changes to reserves, whereas the improvement of the CET1 ratio also reflects a reduction in risk-weighted assets.
  • The bank was active on Friday over a sole deal of 3,750 shares. The price declined by 5.1% to $0.37.
• Bank of Valletta plc managed to recoup some lost ground this week. Yesterday, the equity reached a four-month-intra-day low price of €0.91 but recovered by end of session as it reached the €0.944 price level. A total of 15 transactions involving 39,055 shares pushed the price 1.5% higher over the week.
• Its peer, HSBC Bank Malta plc, started off on a positive note, as it reached €0.85, but closed the week lower at €0.825 – the lowest price since November 2002. This was the result of 39,119 shares spread across 18 transactions.
• Heading the list of fallers in the banking segment was Lombard Bank plc, as two deals involving 5,695 shares resulted into a negative 9.8% movement in price. The bank’s share price at week end read a multi-year low of €1.84.
• On Monday, Simonds Farsons Cisk plc announced that the Annual General Meeting was postponed to October 8, 2020, in view of the current Covid-19 restrictions. The equity lost 7.9%, as it ended the week at €7.00. A total of 4,412 shares were spread over six transactions.
• On Tuesday, GlobalCapital plc announced that the Annual General Meeting was postponed to a future date due to the ongoing uncertainty related to Covid-19. The equity headed the list of gainers, as it closed 35.9% higher at €0.53. A total of 28,439 shares changed ownership over 13 deals.
• The MSE MGS Total Return Index, contrary to the broader European Sovereign Debt market, advanced by 0.47%. Out of 19 active issues, eight advanced while six closed in negative territory. The 2.5% MGS 2036 (I) was the top performer with a 5.6% rise in price, to close the week at €132.00. On the other hand, the 4.45% MGS 2032 (II) closed 1.28% lower at €143.15.
• The MSE Corporate Bonds Total Return Index closed 0.58% lower. A total of 33 issues were active, nine of which headed north while another 12 closed in the opposite direction. The best performance was recorded by the 5% Tumas Investments plc Unsecured € 2024 as it traded 2.3% higher, closing at €103.90. Conversely, the 5.1% 1923 Investments plc Unsecured € 2024 declined by 4.95% to €95.00.
• In the Prospects MTF market, 11 issues were active. Only the 5% JD Capital plc Unsecured € Bonds 2028 registered a movement in price, as it closed 0.26% higher at €98.25.

* 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. 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]