MSE Trading Report for Week ending 26 March 2021

MSE Equity Total Return Index:

Chart of the Week: Mapfre Middlesea plc

Highlights:
  • The  MSE Equity Total Return Index lost further ground, as it closed 0.7% lower at 7,728.372 points. A total of 17 equities were active, four of which headed north while another eight closed in the opposite direction. Total turnover declined to €0.47 million, versus €1 million generated during the previous week. This was the result of 123 transactions.
  • In the banking industry, HSBC Bank Malta plc traded at a weekly high of €0.84 on Tuesday but did not manage to sustain this level, as it closed at €0.80. A total of 14 deals involving 70,797 shares dragged the price by 2.4%. The share price of the banking equity is down by 11% since the beginning of the year.
  • The worst performance was recorded by FIMBank plc shares, as they registered a double-digit decline of nearly 16%. Three deals involving 15,000 shares dragged the price to $0.37.
  • Bank of Valletta plc reached a 19-week low of €0.876 on Monday but ended the week slightly higher at €0.88 – equivalent to a 2.2% decline. This was the outcome of 27 deals involving 73,892 shares. The bank announced that the forthcoming Annual General Meeting shall be held on May 20, 2021.
    • Last Thursday, the board approved a €20 million capital injection in favour of its associate company Mapfre MSV Life plc (MMSV) to acquire shares in MMSV, as part of the recapitalisation exercise of the latter company.
    • The Bank is supportive of its associate company which has been profitable over the years and does not wish to dilute its shareholding and influence in MMSV. Shareholding in MMSV is held equally between BOV and Mapfre Middlesea plc. This transaction was effected on March 25, 2021.
  • Similarly, the board of Mapfre Middlesea plc approved a €20 million capital injection in favour of its subsidiary company MMSV to acquire additional shares in MMSV, as part of the latter’s recapitalisation exercise.
    • Last Thursday, the board also approved the audited financial statements for the financial year ended December 31, 2020. These shall be submitted for shareholders’ approval at the forthcoming Annual General Meeting, to be held on April 30, 2021.
    • The company registered a turnover of €75.12 million in gross premium written, translating into a 1% increase when compared to the previous year. Profit before tax dropped to €6.39 million from €23.82 million recorded in 2019.
    • A strong balance sheet was maintained, with its shareholder’s equity amounting to €77.05 million still keeping a strong regulatory solvency position as at December 31, 2020, under the Solvency II regime.
    • The directors recommend for the approval of the AGM, the payment of a final net dividend of €3.2 million, equivalent to €0.034782 per share. If approved, the final dividend will be paid on May 25, 2021 to all shareholders listed on the company’s share register as at May 12, 2021.
    • Seven deals involving 3,770 shares pushed the price by 6.3% into positive territory. The equity closed €0.14 higher at €2.38.
  • BMIT Technologies plc was the most liquid equity, as it generated a total turnover of €126,634. This was the result of 239,150 shares spread across 23 transactions. The equity ended the week flat at €0.53. Since the beginning of the year the equity is up by 10%.
  • Yesterday, RS2 Software plc announced that its managed service subsidiary, RS2 Smart Processing Ltd concluded a major processing outsourcing agreement with its business partner Alpha Fintech to provide acquiring services to Bank of New Zealand in New Zealand.
    • The agreement has been signed for an initial term of 3 years with the option to extend yearly.
    • Through its agreement with Alpha, RS2 has also signed on another two clients, a large fintech company in Singapore and a financial institution in Indonesia, for which it is currently in implementation phase.
    • The Group continues its global expansion providing acquiring and issuing processing services to payments providers and financial institutions around the globe.
    • RS2 pointed out that the projected revenue from the above clients has been taken into consideration and is reflected in the projections contained in the Prospectus dated February 19, 2021, relating to the issue of preference shares by the Company.
    • The equity declined by 0.6% to €1.79. Four deals involving 8,100 shares were executed.
  • The board of MIDI plc is scheduled to meet on April 23, 2021, to consider and approve the audited financial statements for the year ended December 31, 2020.
    • The board shall also consider the declaration of a dividend, if any, to be recommended to the Annual General Meeting of shareholders.
    • The equity traded once last Tuesday over slim volume and remained unchanged at €0.40.
  • Two deals involving 7,348 Harvest Technology plc shares did not impact the equity’s previous closing price of €1.48.
    • Yesterday, after close of trading the Company announced that the Board of Directors has approved the audited financial statements of the Company for the financial year ended December 31, 2020.
    • The group generated a 20% increase in revenues over the previous year. Revenue during the financial year ended December 31, 2020 stood at €19.2m.
    • Net profit before tax stood at €4.5m, an increase of 48% over 2019, and a 44% improvement over the original projections.
    • The Board of Directors has resolved to distribute a net dividend of €0.02 per share. All shareholders on the company’s register as at April 1, 2021 shall be entitled to this dividend, which is expected to be paid around April 9, 2021.
  • The board of Grand Harbour Marina plc is scheduled to meet on March 31, 2021, to consider and if deemed appropriate, approve the company’s financial statements for the financial year ended December 31, 2020. The equity was not active during the week.
  • The MSE MGS Total Return Index remained relatively unchanged, as it closed at 1,125.37 points. Out of a total of 15 issues, seven advanced while another six closed in negative territory. The 4.65% MGS 2032 (I) headed the list of gainers, as it closed 0.8% higher at €146.00. On the other hand, the 5.2% MGS 2031 (I) lost 0.9%, ending the week at €149.13.
  • The MSE Corporate Bonds Total Return Index closed marginally higher at 1,099.35 points. Out of 45 active issues, 23 registered gains while another 14 lost ground. The best performance of 11% was recorded by the 6% AX Investments Plc € 2024, as it closed at €117.50. Conversely, the 4.5% Grand Harbour Marina plc Unsecured € 2027 declined by 2.4% to €101.50.
  • In the Prospects MTF market, three issues were active. The 5% The Convenience Shop Holding plc Unsecured & Callable € 2026-2029 was the best performer, as it reached the €103.00 price level over two deals of 7,000 nominal.

 

Upcoming Events 
Best Performers:
1. MMS +6.25%
2. SFC +3.18%
30 MAR 2021 MT: Bank of Valletta plc – Annual Results 3. MIA +1.74%
31 MAR 2021 MT: Grand Harbour Marina plc – Annual Results
07 APR 2021 MT: FIMBank plc – Annual Results Worst Performers:
1. FIM -15.91%
2. TRI -12.12%
3. MPC -3.70%

 

 

 

Price (€): 26.03.2021 Price (€): 18.03.2021 Weekly Change (%) 2021 Performance (%)
MSE Equity Total Return Index 7,728.372 7,781.544 -0.68 -8.77
BMIT Technologies plc 0.530 0.530 0.00 9.96
Bank of Valletta plc 0.880 0.900 -2.22 -7.37
FIMBank plc (USD) 0.370 0.440 -15.91 -26.00
Grand Harbour Marina plc 0.660 0.660 0.00 -5.71
GO plc 3.620 3.560 1.69 2.26
Harvest Technology plc 1.480 1.480 0.00  0.00
HSBC Bank Malta plc 0.800 0.820 -2.44 -11.11
International Hotel Investments plc 0.525 0.525 0.00 -27.08
Lombard Bank plc 1.900 1.940 -2.06 -19.49
Loqus Holdings plc 0.090 0.090 0.00 -9.09
LifeStar Holding plc 0.600 0.600 0.00 20.00
MIDI plc 0.400 0.400 0.00 -10.71
Medserv plc 0.630 0.630 0.00 -20.25
Malta International Airport plc 5.850 5.750 1.74 -5.65
Malita Investments plc 0.895 0.900 -0.56 -0.56
Mapfre Middlesea plc 2.380 2.240 6.25 -3.25
Malta Properties Company plc 0.520 0.540 -3.70 4.00
Main Street Complex plc 0.498 0.498 0.00 -0.40
MaltaPost plc 1.160 1.160 0.00 -12.78
PG plc 2.020 2.000 0.00 1.00
Plaza Centres plc 0.880 0.880 0.00 -10.20
RS2 Software plc 1.790 1.800 -0.56 -10.50
Simonds Farsons Cisk plc 8.100 7.850 3.18 3.85
Santumas Shareholdings plc 1.390 1.390 0.00 0.00
Tigné Mall plc 0.655 0.655 0.00 -22.94
Trident Estates plc 1.450 1.650 -12.12 -12.65

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]