MSE Trading Report for Week ending 12 March 2021

• The  MSE Equity Total Return Index lost ground, as it declined by 0.5% to 7,844.819 points. Total weekly turnover was up by circa €1 million when compared to the previous week, as it increased to €1.4 million – generated over 235 transactions. A total of 21 equities were active, eight of which headed north and 10 closed in the opposite direction.
• In the telecommunication sector, GO plc shares jumped by 6% following the approval of the financial statements for the year ended December 31, 2020 and on the back of a strong dividend which the board is expected to recommend during the next Annual General Meeting (AGM).
  • During 2020, GO generated close to €185.2 million in revenue versus €177.8 million recorded in the previous year – translating into a 4.2% increase over 2019.
  • Revenue from GO’s local telecommunications segment suffered a marginal decline of 0.9% compared to 2019, mainly driven by the significant drop in international roaming traffic due to travel restrictions.
  • All this contributed to a profit before tax of €20.9 million, which is equivalent to a 0.8% decline, when compared to the previous year’s figure.
  • The board resolved to recommend the approval of the payment of a final dividend of €0.16 net of tax per share during the Annual General Meeting, to be held on May 27, 2021. The payment of this net dividend amounts to the total sum of €16.21 million, being the highest dividend ever when excluding extraordinary events. The final dividend for the year ended December 31, 2020 will be paid on May 31, 2021 to all shareholders listed on the register as at April 27, 2021.
  • The equity was the most liquid, as total turnover amounted to €0.4 million. This was the result of 41 deals involving 126,102 shares, pushing the price 6.1% higher to €3.50 – the highest price in two months.
• BMIT Technologies plc approved the annual report and financial statements for the financial year ended December 31, 2020. These shall be submitted for the approval of shareholders at the forthcoming AGM, scheduled on May 26, 2021.
  • During the AGM, the board resolved to recommend the approval of the payment of a final dividend of €0.02922 net of taxation per share, amounting to the total sum of €5,949,055. The final dividend for the year ended December 31, 2020 will be paid on May 28, 2021 to all shareholders who are on the shareholder’s register on April 26, 2021.
  • In 2020, BMIT generated good performance across all operational segments. The Group generated revenues of €24 million, translating into a 6.9% increase, when compared to 2019.
  • Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) amounted to €10.5 million. These results incorporate the consolidated results of all the subsidiary companies within the Group.
  • Profit before tax was up by 6.4%, as it stood at €7.6 million.
  • A 6.2% increase, versus the previous year’s figure, was recorded in costs of sales, administration and related costs, as it amounted to €16.1 million. This is the result of growth in business, and a reflection of the changing service offering, which is increasingly focused on providing complete managed solutions to customers.
  • The equity registered a positive 9.1% movement in price, as it reached a one-year-high of €0.53. This was the result of 622,215 shares spread across 47 transactions.
• Last Wednesday, Malta International Airport plc (MIA) published February’s traffic results, whereby an all-time-low dip was recorded since the airport’s re-opening to commercial flights in July 2020.
  • Totalling just 27,524 passenger movements, February’s traffic registered a drop of 93.5% over the same month in 2020.
  • From among the airport’s top 10 markets, the United Kingdom registered the largest drop in passenger numbers, as a ban restricting travel between the two countries remained in place.
  • Last February marked a year since MIA first reported the early effects of the Covid-19 pandemic, manifested in declining seat load factors (SLF) – particularly on Italian routes – as the demand for air travel started to wane towards the end of the month.
  • With consumer confidence and air travel demand remaining particularly low, seat capacity deployed by airlines in February 2021 was at just 10% of February 2020 levels.
  • Standing at 52.5%, last month’s seat load factor showed that only just over half the seats available on flights to and from Malta, were occupied throughout the month.
  • The equity registered a negative 3.4% movement in price, as it closed at €5.75. This was the outcome of 35 deals involving 42,466 shares. On a year-to-date basis, MIA is down by 7.3%.
• In the banking sector, Bank of Valletta plc gained 1% to close at €0.91. A total of 88,470 shares changed hands over 24 deals.
• Meanwhile, nine deals involving 39,113 HSBC Bank Malta plc shares dragged the price by 1.2%. The equity ended the week at €0.84.
• Last Monday, Lombard Bank Malta plc announced that the board is scheduled to meet on April 22, 2021 to approve the Group’s and the Bank’s final audited accounts for the financial year ended December 31, 2020.
  • The board shall also consider the declaration or otherwise of a final dividend to be recommended to the AGM subject to regulatory guidelines and approvals. The AGM shall be held remotely on May 28, 2021.
  • No trading activity was recorded during the week.
• The board of Malita Investments plc approved the financial statements for the period ended December 31, 2020 and resolved that they be submitted for approval of the shareholders at the forthcoming AGM, to be held on May 11, 2021.  Shareholders listed on the register on April 11, 2021 will receive notice of the AGM.
  • Revenue increased by 5.4% to €8.5 million, when compared to the previous financial year.
  • On the other hand, a 72% drop in profit before tax was recorded, as it amounted to €11.5 million – equivalent to a €29.8 million decline.
  • Earnings per share as at end of 2020 stood at €0.0644c versus €0.2508c recorded in 2019.
  • The directors resolved to recommend to the AGM the approval of a final net dividend of €3,369,458 or €0.0228 per share. The final dividend consists of an interim dividend which has already been paid and which was declared by the directors on August 21, 2020, amounting to a net dividend of €1,270,767 or €0.0086 per share. It also consists of an additional net dividend of €2,098,691 or €0.0142 per share, which has been recommended by the directors. If approved, the additional dividend will be paid on May 18, 2021, to those shareholders included in the shareholders register of the company as at April 11, 2021.
  • The equity was up by 2.3%, as 37,999 shares changed hands across five deals, to end the week at €0.90.
• Last Thursday, Tigne’ Mall plc announced that in view of the current Covid-19 restrictions, the majority of tenancies at the shopping mall shall be closed for one month, until April 11, 2021. This closure is yet again, expected to have a negative impact on revenue. The equity was not active during the week
• Yesterday, Plaza Centres plc announced that due to the imposed restrictions, the majority of shops are now closed. The Food Hall and other food outlets are open for takeaways and deliveries.
  • This new closure is expected to have a negative impact on the company’s revenue generation.
  • The equity was active last Wednesday as 10,500 shares were executed over three deals.
  • As a result, the price declined by 3.3% to an eight-month-low of €0.88.
• The best performance was recorded by Loqus Holdings plc with an 80% spike in price to €0.09. Two deals involving 9,430 shares were executed.
• The MSE MGS Total Return Index lost 0.02%, as it reached 1,124.37 points. A total of 19 issues were active, 10 of which registered gains while another seven closed in the red. The 1.00% MGS 2035 (II) headed the list of gainers, as it closed 2.9% higher at €105.00. Conversely, the 4.5% MGS 2028 (II) closed at €133.56, equivalent to a 3.2% decline.
• The MSE Corporate Bonds Total Return Index declined by a further 0.1% to 1,098.99 points.  Out of 47 active issues, 19 advanced while another 14 traded lower. The top performer was the 4.5% Grand Harbour Marina plc Unsecured 2027, as it ended the week 3% higher at €104. On the other hand, the 4% MIDI plc Secured € 2026 lost 2%, ending the week at €100.01.
• In the Prospects MTF market, six issues were active. The 5.5% IG Finance plc € Unsecured 2024-2027 was the most active, as it generated a total weekly turnover of €67,300.

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]