MSE Trading Report for Week ending 01 April 2021

MSE Equity Total Return Index:

Chart of the Week: Malta International Airport plc

Highlights:
  • The MSE Equity Total Return Index managed to finish the week 0.8% higher at 7,792.985 points, despite a decline in the share price of Bank of Valletta plc (BOV). A total of 12 equities were active, seven of which registered gains while one lost ground. During this three-day trading week, total turnover was 36% higher than the previous week’s figure, as it stood at €0.64 million.
  • BOV’s board approved the audited financial statements for the financial year ended December 31, 2020. It resolved that these audited financial statements be submitted for the approval of the shareholders at the forthcoming Annual General Meeting (AGM) being held on May 20, 2021.
    • The bank reported profit before tax of €15.2 million, versus the previous year’s figure of €89.2 million. However, when adjusted for several specific items, it would increase to €100.7 million (2019 – €138.1 million) – a reduction of €37.4 million or 27% when compared to prior year.
    • The most significant specific items were the €38.1 million related to increases in credit provisions with charges predominantly attributed to COVID-19. It also includes €39.8 million in impairment charges for long outstanding non-performing loans driven by changes in regulatory policy considering the current economic environment.
    • The remaining items are a €15.8 million investment in the Bank’s transformation programme, offset by an €8.1 million net litigations provision release following the settlement of the Swedish Pensions Agency (SPA) case.
    • The total assets of the Group reached €12.9 billion as at December 2020 – an increase of 5% over the previous year. The Group liquidity ratio stands at 463%, reflecting the extraordinary deposit growth that has outpaced loan demand.
    • The financial investments portfolio decreased by 5.2% or €171 million year-on-year. The decrease relates to the maturing debt securities which were partly replaced at lower yields.
    • Net loans and advances increased by €296 million, or 6.6%, during the year and stood at €4.7 billion as at December 31, 2020.
    • Moreover, the CET 1 ratio increased from 19.5% to 20.9%, and the total capital ratio improved from 23.1% to 24.5% as at end of December 2020.
    • In line with the regulators’ recommendation, the Board has responsibly decided not to declare distribution of dividends for the year 2020.
    • BOV was the only negative performer, as it closed 1.1% lower, reaching a 20-week low of €0.87. This was the outcome of 58,539 shares spread across 28 transactions.
  • Its peer, HSBC Bank Malta plc was the most liquid, as it generated a total weekly turnover of €213,426. The equity was active only on Monday, as seven deals involving 260,500 shares were executed. A 1.3% positive movement in price was recorded, as it closed at €0.81.
  • Malta International Airport plc had another positive week, as it closed 4.3% higher at €6.10. A total of 10,393 shares were spread across 20 transactions, generating a total weekly turnover of €62,345.
  • Last Thursday, RS2 Software plc announced that it has applied for, and obtained, authorisation for the publication of the Supplement to the Prospectus dated February 19, 2021, issued in respect of an offer of up to 28,571,400 Preference Shares in RS2 Software plc.
    • The Supplement was issued for the purpose of updating certain information. Firstly, in the event that the Offer is not fully subscribed for, the Issuer will proceed with the allotment and listing of the Preference Shares subscribed for. Moreover, the Offer Period is being extended until April 16, 2021.
    • Investors who subscribed for the Preference Shares before March 30, 2021 are entitled to withdraw their application within three Business Days following the publication of this Supplement. The final date of such right of withdrawal is April 6, 2021.
    • The equity started off the week in the red but managed to recover, as it closed 0.6% higher at €1.80. Seven deals involving 13,269 shares were executed.
  • Harvest Technology plc reached an all-time-high of €1.57 last Monday following the positive annual results announced last week. However, the equity ended the week flat at €1.48. A total of 49,810 shares changed ownership across eight transactions.
  • Last Thursday, Medserv plc announced that the board is scheduled to meet on April 30, 2021 to consider, and if thought fit, approve the annual financial statements of the Company for the financial year ended December 31, 2020. The equity traded only on Tuesday and remained flat at €0.63.
  • Last Thursday, the board of Grand Harbour Marina plc approved the financial statements for the period ended December 31, 2020 and resolved that they will be submitted for the approval of the shareholders at the forthcoming Annual General Meeting.
    • Total revenue decreased marginally from €4.12 million to €4.10 million while profit before tax increased from €0.4 million to €0.81 million.
    • The Company’s total assets increased by 1.2% to €28.3 million, while liabilities declined marginally to €24.9 million. No dividends were declared by the Company for the year ended December 31, 2020.
    • The equity was not active during the week.
  • The board of Plaza Centres plc is scheduled to meet on April 28, 2021 to consider and if thought fit, approve the Group’s Financial Statements for the financial year ended December 31, 2020. The board also announced that during the month of March 2021, the Company purchased a total of €25,000 in the 3.9% unsecured bonds 2026. Furthermore, the board announced that the Company is extending the offer to stand in the market to acquire an additional €1,220,000 nominal until June 20, 2021 at a maximum price of €104.5 per bond.
  • The MSE MGS Total Return Index remained relatively unchanged at 1,124.27 points. A total 11 of issues were active, five of which headed north while another six closed in the opposite direction. The 5.1% MGS 2029 (I) was the best performer, as it closed 2.2% higher at €145.00. On the other hand, the 2.1% MGS 2039 (I) lost 0.8%, ending the week at €124.03.
  • The MSE Corporate Bonds Total Return Index registered a further 0.85% increase, as it reached 1,108.74 points. Out of 42 active issues, 15 advanced while another 14 lost ground. The 4.5% Hili Properties plc Unsecured € 2025 headed the list of gainers, as it registered a 3.4% increase in price, reaching the €103.50 price level. Conversely, 5.75% Medserv plc Unsecured USD 2026 ended the week 2.1% lower at $93.00.
  • In the Prospects MTF market, three issues were active. The 5% HH Finance Plc Unsecured Euro Bonds 2023-2028 was the most active, as it generated a total weekly turnover of €17,820.

 

Upcoming Events 
Best Performers:
1. TML+9.92%
2. MIA+4.27%
07 APR 2021MT: FIMBank plc – Annual Results3. MTP+1..72%
22 APR 2021MT: Tigne’ Mall plc – Annual Results
22 APR 2021MT: HSBC Bank Malta plc – Annual General MeetingWorst Performers:
1. BOV-1.14%

 

 

 

Price (€): 01.04.2021Price (€): 26.03.2021Weekly Change (%)2021 Performance (%)
MSE Equity Total Return Index7,792.9857,728.3720.84-8.01
BMIT Technologies plc0.5300.5300.009.96
Bank of Valletta plc0.8700.880-1.14-8.42
FIMBank plc (USD)0.3700.3700.00-26.00
Grand Harbour Marina plc0.6600.6600.00-5.71
GO plc3.6403.6200.552.83
Harvest Technology plc1.4801.4800.00 0.00
HSBC Bank Malta plc0.8100.8001.25-10.00
International Hotel Investments plc0.5250.5250.00-27.08
Lombard Bank plc1.9001.9000.00-19.49
Loqus Holdings plc0.0900.0900.00-9.09
LifeStar Holding plc0.6000.6000.0020.00
MIDI plc0.4000.4000.00-10.71
Medserv plc0.6300.6300.00-20.25
Malta International Airport plc6.1005.8504.27-1.61
Malita Investments plc0.8950.8950.00-0.56
Mapfre Middlesea plc2.3802.3800.00-3.25
Malta Properties Company plc0.5200.5200.004.00
Main Street Complex plc0.4980.4980.00-0.40
MaltaPost plc1.1801.1601.72-11.28
PG plc2.0402.0200.992.00
Plaza Centres plc0.8800.8800.00-10.20
RS2 Software plc1.7901.7900.56-10.00
Simonds Farsons Cisk plc8.1008.1000.003.85
Santumas Shareholdings plc1.3901.3900.000.00
Tigné Mall plc0.7200.6559.92-15.29
Trident Estates plc1.4501.4500.00-12.65

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]