MSE Trading Report for Week ending 11 December 2020

• The  MSE Equity Total Return Index extended its positive trend for the seventh consecutive week, having registered a positive 2.1% increase to 8,528.554 points. A total of 20 equities were active, 14 of which headed north, while another four closed in the red. A total weekly turnover of €1.6 million was generated across 253 transactions.
• Telecommunications company, GO plc¸ was the most active, as it generated a total turnover of €212,639. A total of 21 deals involving 62,301 shares pushed the price 12.5% higher, reaching the €3.60 price level – a six-month high.
• On Wednesday, Malta International Airport plc (MIA) announced the traffic results for the month of November.
  • A 91.9% drop in passenger movements was recorded when compared to the same month in 2019.
  • As the aviation industry continued to grapple with the challenges brought by Covid-19, including travel restrictions and low consumer confidence, daily average passenger movements dropped from 16,439 in November 2019 to just 1,327 last November.
  • The quietest day for the airport since the airport’s reopening to commercial operations in July 2020 was November 24, with only one passenger flight.
  • Amsterdam Schiphol together with Rome Fiumicino, Frankfurt International Airport, Istanbul Airport, and London Heathrow were November’s most popular airports, accounting for just over 16,500 passenger movements for the month.
  • While passenger traffic continued to register staggering drops, the blow dealt to cargo and mail was not as devastating, given the importance of keeping supply chains running amid the crisis.
  • Last month, cargo and mail through MIA registered a decrease of 16.2% to stand at 1,459 tonnes.
  • The equity registered a positive 0.8% movement in price, as it closed five cents higher at €6.20. This was the outcome of 15 deals involving 14,549 shares.
• Both major banks registered an increase in turnover but closed in opposite direction.  Bank of Valletta plc closed €0.03 lower at €1.04 – equivalent to a 2.8% change in price. This was the result of 39 deals involving 157,592 shares. The banking equity has recovered most of its year-to-date loss, which now stands at nearly 2% in the red. Meanwhile, its peer,
• HSBC Bank Malta plc, was up by 2.1% to €0.955, as 122,948 shares changed hands across 28 transactions.
• On Wednesday, Harvest Technology plc provided the market with an update on the 2020 performance and expectations.
  • On a year-to-date basis, the company has outperformed its 2020 forecast and, as at September 30, 2020, generated a profit before tax of €2.9 million against the €2.4 million forecast for the first nine months of 2020. This positive trend is expected to be sustained for the remainder of 2020.
  • The company added that the second half of 2021 is expected to witness significant improvement. For the financial year ending December 31, 2021, the company projects revenue in the region of €19.5 million – against the €18.3 million projected for the period reported in the registration document.
  • Similarly, profit before tax is projected at €4 million as opposed to the €3.4 million projected in the prospectus, while earnings per share are projected at €0.11 as against to the €0.097 projected in the prospectus.
  • EBITDA margins are projected to increase to 25%, as against the increase to 23.9% projected in the prospectus.
  • A dividend per share of €0.06 per annum is also expected to be maintained in 2021. However, the board clarified that no firm commitment is being made at this juncture in this respect and will consider the distribution of additional dividends as and when appropriate.
  • By the end of the second quarter of 2021, the company aims to achieve important development milestones in key business areas pursued by the group of companies of which Harvest Technology plc is the parent.
  • The group will invest further to upgrade its technology platforms to ensure that Apcopay services are both scalable as well as versatile.
  • With clients in more than 25 countries, the group will be working on increasing its international presence and diversifying in industries it serves, extending its partners network and introducing new online payment products and services.
  • The group will also step up its focus on internationalisation across all subsidiaries. The success registered by PTL in Mauritius in partnership with IBM, has provided the company with invaluable experience in this respect.
  • Moreover, APCO Ltd is actively exploring new opportunities in South Africa, and a significant amount of preparatory work has already been concluded.
  • Following the announcement, Harvest traded 1.4% higher as 29,300 shares were spread over nine transactions. The equity ended the week at €1.47.
• On Thursday, MIDI plc announced that as part of a corporate restructuring exercise, two of its subsidiary companies, Tigné Point Marketing Limited and Tigné Contracting Limited, are to be amalgamated by a merger by acquisition.
  • The proposed merger by acquisition shall be preceded by a transfer by the company of its entire shareholding in Tigné Point Marketing Limited to Tigné Contracting Limited.
  • Upon the proposed merger by acquisition taking effect, Tigné Contracting Limited as the acquiring company shall succeed to all the assets, rights, liabilities and obligations of Tigné Point Marketing Limited, which in turn shall cease to exist.
  • The proposed merger by acquisition shall not have any effect on the company’s shareholding in Tigné Contracting Limited and the company shall continue to hold the majority of the ordinary shares in Tigné Contracting Limited.
  • No trading activity was recorded during the week.
• On Wednesday, Plaza Centres plc reported that as part of the share buy-back, it has received seven different offers from shareholders totalling 2,738,125 shares.
  • The lowest offer received by the company was for 750,000 shares at a price of €0.91c each.
  • In line with the terms announced these shares were traded on the Malta Stock Exchange for value on December 9, 2020.
  • The equity traded seven times over 98,030 shares, resulting into a positive 5.4% movement in price, to close at €0.98.
• The MSE MGS Total Return Index increased by a marginal 0.07% as it reached 1,135.53 points. Out of 16 active issues, 12 registered gains while another four lost ground. The 3% MGS 2040 (I) was the top performer as it closed 2% higher at €146.00. Conversely, the 4.3% MGS 2033 (I) lost 0.1%, ending the week at €145.00.
• The MSE Corporate Bonds Total Return Index registered a further 0.52% increase as it closed at 1,095.47 points. A total of 43 issues were active, 15 of which advanced while another 17 traded lower. The 5% Tumas Investments plc Unsecured € 2024 headed the list of gainers as it closed at €102 – equivalent to a 1.8% increase. On the other hand, the 3.75% Premier Capital plc Unsecured € 2026 closed 2% lower, reaching its par value.
• In the Prospects MTF market, six issues were active. The 5.75% Pharmacare Finance plc Unsecured EUR Bonds 2025-2028 was the most active as it generated a total turnover of €22,850.

* 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]