MSE Trading Report for Week ending 28 August 2020

• The MSE Equity Total Return Index turned negative with a 1% decline, reaching 7,519.038 points.  Out of 16 active equities, gainers and losers tallied to six-a-piece. Total weekly turnover more than tripled from last week, as it stood at €0.65 million – generated across 121 transactions.
• GO plc was the most liquid equity, as total turnover amounted to €293,558. On the week the share price of the telecoms company declined to €3.32 – translating into a 0.6% change in price. A total of 88,513 shares change hands across 10 transactions.
• On Thursday, the board of Lombard Bank Malta plc approved the interim unaudited financial statements for the six months ended June 30, 2020. The bank recorded a profit before tax of €5 million, translating into a €1.2 million decline when compared to June 2019.
  • Loans and advances to customers increased marginally by 1%.
  • Customer deposits rose by 4% while the resultant group net interest income of €9.3m was 9% lower and remains the main revenue driver.
  • Bank advances to deposits ratio was 61.4%, indicative of a healthy liquidity buffer.
  • Both Common Equity Tier 1 ratio (CET1) as well as Total Capital Ratio stood at 15.9%, being well above the minimum requirement of 4.5% and 8%, respectively.
  • The board took note of the ECB recommendation on dividend distribution in light of the Covid-19 pandemic and the relative Malta Financial Services Authority circular, stating that until January 1, 2021, no dividends are paid out and no irrevocable commitment to pay out dividends is undertaken by credit institutions for the financial years 2019 and 2020. Therefore, the board resolved to withdraw its recommendation for the payment of a final 2019 dividend.
  • The bank traded twice over 3,000 shares, pushing the price 6.4% higher to €2.00.
• This week’s top performance was recorded by Simonds Farsons Cisk plc, as it closed 6.4% higher at €7.45. This was the outcome of three deals involving 561 shares.
• On Friday, Malta International Airport plc announced that the annual general meeting shall be held on November 11, 2020 on a remote basis. The equity was trading at high of €4.98 during the week but closed at €4.90 on Friday – equivalent to a 1.7% increase. A total of 18 deals involving 9,845 shares were executed.
• On Thursday, PG plc announced that the board approved its annual report and the audited consolidated financial statements for the year ended April 30, 2020, and resolved to propose the same for the approval of the shareholders at the forthcoming fourth annual general meeting to be held on October 15, 2020.
  • Turnover for the year under review amounted to €120 million representing a growth of 11%. The increased turnover resulted, as expected, in a corresponding growth in direct and other costs.
  • Margins increased slightly, from 15.2% in 2019 to 15.7% in this financial year. This improvement was in part attributable to new accounting rules.
  • The group’s profit before tax amounted to €13 million, compared to €12 million in 2019.
  • The group generated a net cash flow from operating activities of €15.5 million, translating into a 54.8% increase, which was applied in the main towards the payment of dividends and towards the accelerated reduction of bank borrowings.
  • Eight deals involving 22,266 shares dragged the price by 8.5% into the red, to close at €1.72.
• On Thursday, RS2 Software plc announced that the directors approved the interim financial statements for the period ended June 30, 2020.
  • Revenue declined by 3.4% to €10.8 million when compared to the first six months of 2019.
  • The group recorded a loss before tax of €3.1 million versus a profit of €0.3 million recorded during the same period of the previous year. Earnings per share stood at a negative €0.0119, while during the previous year, a positive €0.0001 was recorded.
  • The board did not declare an interim dividend.
  • The equity finished the week 1.7% lower at €2.28. This was the result of four deals involving 7,161 shares. On a year-to-date basis, the equity is up by 6.5%.
• Last Friday, Malita Investments plc approved the condensed interim financial statements for the six-month period ended June 30, 2020.
  • A 4% increase in revenue was recorded, as it stood at €4.1 million, when compared to the same period last year.
  • A loss before tax of €22 million was recorded versus a profit before tax of €30.8 million recorded in the first six months of 2019.
  • Earnings per share stood at a loss of 14.07 cents versus a positive 18.79 cents recorded during the previous year’s period.
  • The directors have also approved the payment of a gross interim dividend €1,955,026 or €0.0132 per share equating to an interim net dividend of €1,270,767 or €0.0086 per share.
  • The interim dividend will be paid on September 23, 2020, to all shareholders on the register as at September 4, 2020.
  • The equity was active but closed unchanged at €0.92.
• On Tuesday, MIDI plc announced the approval of the unaudited interim financial statements for the six months ended June 30, 2020.
  • Revenue for the half year amounted to €1.1 million versus the €9.6 million recorded during end of June 2019.
  • This was solely generated by the property and rental management sector of the group resulting in an overall operating loss of €0.7 million, while a profit of €4.3 million was registered in 2019.
  • The MIDI group has registered a loss before tax of €0.9 million compared to a profit before tax of €4 million registered for the same period last year.
  • The equity was not active during the week.
• On Friday, Tigne’ Mall plc announced that the board considered and approved the unaudited condensed interim financial statements for the six-month period ended June 30, 2020.
  • Revenue declined by 37% to €2.1 million when compared to the same period of 2019.
  • Similarly, profit before tax declined by 73% as it amounted to €0.4 million.
  • Earnings per share now stand at €0.004 down from €0.021 recorded during the same period last year.
  • The board did not recommend the payment of an interim dividend considering the current scenario.
  • No trading activity was recorded during the week.
• On Wednesday, Plaza Centres plc announced that the Annual General Meeting shall be held on a remote basis on October 14, 2020.  The equity traded three times over 9,945 shares, to close 1.1% higher at €0.94.
• On Friday, Global Capital plc announced that the board approved the unaudited financial report for the six-month period ended June 30, 2020.
  • A loss before tax of €3.9 million was recorded versus a profit of €2.3 million recorded in the same period of 2019.
  • Earnings per share stood at a negative €0.119, while a profit per share of €0.0043 was registered in June 2019.
  • The equity was active but closed unchanged at €0.53.
• On Wednesday, Grand Harbour Marina plc announced that the directors approved the half yearly report for the financial period January 1, 2020 to June 30, 2020.
  • The group’s loss before tax for the six-months ended June 30, 2020, which includes the 45% share of the losses of IC Cesme, amounted to €0.05 million versus a profit before tax of €0.33 million recorded in June 2019.
  • During the period under review, net cash flows from operating activities amounted to €0.36 million, translating into a 33.3% decline when compared to June 2019.
  • The company registered €2.1 million in operating revenues, a marginal increase over the corresponding period of 2019, despite experiencing significant disruption due to the COVID-19 pandemic, while underperforming by €0.3 million when compared to the first half of 2018, attributable to the loss of income from visitor contracts and the consequential lower revenue from utilities.
  • No trading activity was recorded during the week.
• The MSE MGS Total Return Index registered a 1.1% decline, as it closed at 1,112.05 points. Out of 14 active issues, the 2.4% MGS 2041 (I) was the only positive performer, as it closed 0.7% higher at €137, while another 10 lost ground. The 5.25% MGS 2030 (I) declined by 3.4%, ending the week at €143.
• The MSE Corporate Bonds Total Return Index advanced by a further 0.5% as it reached 1,081.94 points. A total of 37 issues were active, 13 of which headed north while another 11 closed in the opposite direction. The 5.8% International Hotel Investments plc 2021 was the best performer, as it closed 3.1% higher, reaching its par value. On the other hand, the 4.85% Melite Finance plc Unsecured 2028 registered an 18.4% drop in price, to close at €80.00.
• In the Prospects MTF market, two issues were active. The 5% Borgo Lifestyle Finance plc Secured Callable 2026-2029 was the most liquid, as it generated a total turnover of €9,800.

* 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]