MSE Trading Report for Week ending 04 September 2020

MSE Equity Total Return Index:

Chart of the Week: PG plc

Highlights:
  • The MSE Equity Total Return Index’s positive start to the week was short lived, with declines being registered during the first four trading days of September. A total of 17 equities were active, of which three headed north while another 11 closed in the opposite direction. A total weekly turnover of €0.56 million was generated across 123 transactions.
  • This week’s top performance was recorded by PG plc as it registered a double-digit gain of 10.5%.
    • The equity was the most liquid with a total turnover of €126,563.
    • The equity enjoyed a positive week throughout at the €1.85 level, to then extend gains even further on Friday, having reached the €1.90 price mark.
    • A total of 68,350 shares were spread across 11 deals.
    • On a year-to-date basis, the equity is up by 3.3%.
  • On Wednesday, Bank of Valletta plc announced that the Annual, General Meeting (AGM) shall be held remotely on November 26, 2020. Shareholders on the company’s register as at close of business of October 26, 2020 will receive notice of the AGM.
    • The bank issued another announcement with reference to a claim from the Swedish Pension Agency (SPA), being the sole investor in the Falcon Fund SICAV, for damages claimed to have been suffered by SPA in an alleged amount exceeding €71 million.
    • The Bank advises that it has settled the claim for €26.5 million. The settlement arrangements will not result in the Bank incurring a loss in excess of that already provided for, with some release back to P&L expected in due course.
    • The Bank’s total provisions for all contingent liabilities will also be reduced significantly once the transaction is completed.
    • The bank reached a weekly high of €0.914 on Wednesday, but ended the week slightly lower at €0.90 – equivalent to a 0.7% increase on the week. This was the result of 47,508 shares spread over 20 deals.
  • On Tuesday, the board of International Hotel Investments plc approved the half-yearly financial report ended June 30, 2020.
    • The group registered a total revenue of €51.7 million, of which approximately 30% is derived from the non-hotel businesses such as rental income. This translates into a 58% drop when compared to the previous half-year’s figure.
    • During the first six months of 2020, a negative EBITDA of €2.1 million was registered, whereas during the same period last year, a positive EBITDA of €28 million was recorded.
    • A loss before tax of €36.7 million was recorded versus a profit before tax of €5.2 million during the same period of the previous year.
    • The board also published financial analysis summary for 2020. Revenue in 2020 is projected to decrease substantially by €175.1 million to €93.2 million as a result of the Covid-19 outbreak which resulted in an immediate and significant deterioration in the group’s hotels and catering activities. The group is assuming that revenue levels will not revert to pre COVID-19 benchmarks before 2022.
    • A drop of 92.6% in EBITDA is expected when compared to €69.8 million recorded in 2019 financial year.
    • A loss for the year before tax is estimated at €75 million versus a profit of €14 million recorded in 2019.
    • Due to an increase in borrowings, the gearing ratio of the group is expected to increase from 37% in 2019 to 42%.
    • Notwithstanding, the liquidity ratio is projected to increase to 1.16 times from 1.13 times reported at the end of 2019.
    • Six deals involving 12,422 shares dragged the price by 6.5%, ending the week at the €0.505 price level.
  • On Friday, Malita Investments plc announced that during the annual general meeting, held on Thursday, all the resolutions put forward for approval by shareholders were approved.
    • The financial statements for the year ended December 31, 2019, and the directors’ and auditors’ reports were received and approved.
    • The payment of a final gross dividend of €0.035 per share (€5,183,782), consisting of an interim dividend which was paid on September 6, 2019, and an additional gross dividend which was paid on May 12, 2020, equating to a final net dividend of €0.02711 per share, was also approved and ratified.
    • The equity was not active during the week.
  • Last week, Trident Estates plc announced that the board is scheduled to meet on Wednesday, September 16, 2020, in order to consider and approve the unaudited financial statements for the six months ended July 31, 2020. No trading activity was recorded during the week.
  • Similarly, Simonds Farsons Cisk plc announced that the board is scheduled to meet on September 23, 2020, to consider and approve the interim accounts for the half-year period ended July 31, 2020, and the publication of the group’s 2020 financial analysis summary. The board shall also consider the declaration or otherwise of an interim dividend on all ordinary shares.
  • The MSE MGS Total Return Index gained ground as it closed 2.07% higher at 1,135.06 points – in line with the broader European sovereign debt market. A total of 20 issues were active, of which 14 advanced while another four traded lower. The best performance was recorded by the 2.5% MGS 2036 (I) as it closed at €133.00 – translating into a 7.3% change in price. On the other hand, the shorter dated 5.5% MGS 2023 (I) issue lost 0.36%, ending the week at €115.60.
  • The MSE Corporate Bonds Total Return Index declined by 0.35% as it reached 1,078.21 points. Out of 48 active issues, 15 registered gains while another 21 lost ground. The 5% GlobalCapital plc Unsecured € 2021 headed the list of gainers as it closed 2.1% higher at €98.00. Conversely, the 4% MIDI plc Secured € 2026 traded 3.3% lower, reaching the €100.51 price level.
  • In the Prospects MTF market, seven issues were active. The 5% Luxury Living Finance plc € Secured Bonds 2028 was the most liquid, as total turnover stood at €17,796.

 

Upcoming Events
Best Performers:
1. PG+10.47%
09 SEP 2020MT: Tigne’ Mall plc – Annual General Meeting2. GCL+3.77%
11 SEP 2020MT: Grand Harbour Marina plc – Annual General Meeting3. BOV+0.67%
16 SEP 2020MT: Trident Estates plc – Interim Results
23 SEP 2020MT: Simonds Farsons Cisk plc – Interim ResultsWorst Performers:
01 OCT 2020MT: MIDI plc – Annual General Meeting1. IHI-6.48%
2. MDS-4.62%
3. MTP-4.55%

 

 

 

 

 

 

Price (€): 04.09.2020Price (€): 28.08.2020Weekly Change (%)2020 Performance (%)
MSE Equity Total Return Index7,473.3097,519.038-0.61-22.28
BMIT Technologies plc0.4600.476-3.36-11.54
Bank of Valletta plc0.9000.8940.67-15.09
FIMBank plc (USD)0.3700.3700.00-38.33
GlobalCapital plc0.5500.5303.7796.43
Grand Harbour Marina plc0.7000.720-2.7827.27
GO plc3.3003.320-0.60-22.54
Harvest Technology plc1.4701.470-0.68 -2.67
HSBC Bank Malta plc0.8000.8000.00-38.46
International Hotel Investments plc0.5050.540-6.48-39.16
Lombard Bank plc2.0002.0000.00-12.28
Loqus Holdings plc0.0970.0970.0050.39
MIDI plc0.3680.3680.00-31.85
Medserv plc0.6200.650-4.62-43.64
Malta International Airport plc4.8404.900-1.22-29.86
Malita Investments plc0.9200.9200.002.22
Mapfre Middlesea plc1.8001.8000.00-16.67
Malta Properties Company plc0.5100.5100.00-19.05
Main Street Complex plc0.4900.4900.00-18.33
MaltaPost plc1.0501.100-4.55-19.85
PG plc1.9001.72010.473.26
Plaza Centres plc0.9350.940-0.53-7.43
RS2 Software plc2.2602.280-0.885.61
Simonds Farsons Cisk plc7.4507.4500.00-35.22
Santumas Shareholdings plc1.4901.4900.005.67
Tigné Mall plc0.7950.820-3.05-11.67
Trident Estates plc1.4801.4800.00-4.52

 

 

 

* 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]