MSE Trading Report for Week ending 04 December 2020

• The  MSE Equity Total Return Index registered another positive performance for the sixth consecutive week, as it reached 8,356.324 points. This is equivalent to an 11.4% increase. A total weekly turnover of €0.95 million was generated across 255 transactions. Out of 21 active issues, 16 headed north while another three closed in the opposite direction.
• Malta International Airport plc was the most liquid, representing over a fifth of total turnover – the result of 49 deals involving 32,622 shares. The equity reached a nine-month high of €6.25 on Tuesday, to then retreat marginally to €6.15 – translating into a 7% gain on the week.
• On Tuesday, FIMBank plc announced that during the Annual General Meeting, the audited accounts for the financial year ended December 31, 2019, together with the report of the directors, the corporate governance statement, the remuneration report and the report of the auditors, were considered and approved.
  • The bank’s equity headed the list of gainers, recording an astonishing 50% increase.
  • Yesterday, the equity reached $0.45 during the post trading phase.
  • Eight deals involving 81,514 were executed.
• On a similar note, Bank of Valletta plc reached €1.075 on Wednesday – the highest price in 10 months, to close 15% higher on the week at €1.070. A total turnover of €151,064 was generated, as 153,272 shares were spread across 52 transactions. On a year-to-date basis, the equity is now generating a positive return of 0.94%.
• Its peer, HSBC Bank Malta plc ended the week with a 16.9% rise in price, as 57,926 shares changed hands over 16 deals. The bank ended the week at €0.935 and reached a four-month-high price of €0.94 during the week.
• On Wednesday, Lombard Bank Malta plc held its Annual General Meeting. The audited financial statements for the financial year ended December 31, 2019, and the directors’ and auditors’ reports thereon were approved. Three deals involving 4,022 shares pushed the price up by 4.2% to €2.00.
• Another equity generating a double-digit increase was International Hotel Investments plc. A total of 17 deals involving 93,730 shares resulted into a 31.6% movement in price, reaching the €0.75 price level – a nine-month high.
• On Tuesday, BMIT Technologies plc announced that despite the current unprecedented and challenging times, it remains resilient and has continued to produce good results.
  • As at end of quarter three of 2020, the company generated revenues of €17.9 million, a growth of 6.1% over the comparative period last year.
  • This positive performance was sustained despite the challenges brought about by the Covid -19 pandemic and resulted in an EBITDA of €7.9 million up to the end of this same quarter – an increase of 4% over last year.
  • The group maintained a strong cash position while honouring its commitments towards its stakeholders, including the timely payment of a dividend to shareholders earlier this year.
  • As all major investments, including the Żejtun Data Centre development, are being re-evaluated from a strategic perspective, in view of the realities brought about by the pandemic, several consolidation and growth opportunities are being explored in order to achieve further growth in the future.
  • Such initiatives include the consideration of deployment of new products and services, including a further diversification of the company’s solutions portfolio, as well as assessing the possibility of tapping into new markets.
  • Yesterday, the company announced that it has entered into a share purchase and subscription agreement with EBO Ltd.
  • The purchase price and the subscription price, totalling €1.542 million, were respectively paid by BMIT to the Seller and EBO on the date of execution of the agreement.
  • BMIT expects to accrue the benefit of participating in EBO’s growth and particularly the development of its core Intellectual Property in the AI space and also participate in any market growth EBO witnesses in its operational markets.
  • This investment will also allow BMIT to actively participate in this innovation and automation space, as part of its stated strategic intent to further diversify its business and tap on new market opportunities.
  • The equity was up by 1.7% to €0.484, as 95,565 shares changed ownership across 16 transactions.
• The only positive performer in the property sector was MIDI plc, as the equity closed 24.4% higher at €0.448. A total of 15 deals involving 83,612 shares were executed.
• The MSE MGS Total Return Index returned to positive territory, as it closed 0.07% higher at 1,135.53 points. Out of 20 active issues, seven traded higher while another 11 closed in the red. The 1.50% MGS 2045 (I) F.I. headed the list of gainers, as it closed 6.4% higher at €113.25. Conversely, the 3% MGS 2040 (I) lost 1.4%, ending the week at €143.00.
• The MSE Corporate Bonds Total Return Index advanced by a further 0.5%, to close at 1,095.47 points. A total of 48 issues were active, 28 of which registered gains, while another 10 lost ground. The best performer was the 3.5% Simonds Farsons Cisk plc Unsecured € 2027, as it closed 5% higher at €105.20. On the other hand, the 4% Shoreline Mall plc Secured € Bonds 2026 ended the week 4.9% lower, reaching its par value.
• In the Prospects MTF market, four issues were active. The 5.5% Testa Finance plc € Bonds 2029 was the most liquid, and closed the week slightly higher at €98.71.

* 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]