MSE Trading Report for Week ending 21 May 2021

MSE Equity Total Return Index:

Chart of the Week: RS2 Software plc

Highlights:
  • The MSE Equity Total Return Index returned to positive territory, as it closed 1.7% higher at 8,309.976 points. A total of 13 issues were active, seven of which headed north while another five closed in the opposite direction. RS2 Software plc (RS2) shares headed the list of gains with a double-digit gain, while hotels operator International Hotel Investments plc (IHI) also played its part in this week’s gain. Total weekly turnover amounted to €0.4m, generated across 145 transactions.
  • RS2 shares gained 13.3% to end the week at €2.04, following a company announcement on Tuesday. During the week, the equity also reached a six-month high of €2.12 and a low of €1.82. A total of 29,053 shares changed hands across 13 transactions worth €55,625.
    • RS2 announced that its German subsidiary RS2 Financial Services GmbH has been granted an E-Money Institution (EMI) licence by the BaFIN, the German Federal Financial Supervisory Authority. The EMI licence allows the Group to provide a wider range of financial services comparing with payment institutions and allows safeguarding client funds for an unlimited period of time.
    • To date, the Group uses external market leading service providers to complete its service offering for financial service providers and merchants with respective back-up alternatives available. As an EMI institution, the Group will be enabled to provide direct acquiring and issuing services to merchants, and will be offering such services as from the second half of 2021. The initial focus will be on the German market, eventually passporting the licence to other European countries at a later stage.
    • Similarly, but to a lesser extent, the preference shares of RS2 were up by 3.9% to €1.85. Four deals involving 12,000 shares were executed.
  • In the hospitality sector, IHI shares jumped by 7.4% to end the week at €0.65. A total of 23,722 shares were spread across four transactions. Last Thursday, the company announced that the Annual General Meeting shall be held on June 10, 2021.
  • Meanwhile, Malta International Airport plc (MIA) was the most liquid equity, as it generated a total turnover of €0.1m – translating into a quarter of total turnover registered across all active equities. MIA reached €6.50 last Thursday but closed the week flat at €6.40. This was the result of 17 deals involving 15,607 shares.
    • Last Tuesday, MIA disclosed the financial performance of the Group for the first quarter of the year. As travel bans and restrictions, both locally and in-source markets remained in place or were introduced throughout the first quarter of 2021, passenger traffic through MIA registered a drop of 90.2% over the same period in 2020.
    • This drastic decline in passenger traffic impacted the Group’s total revenue for the first three months of the year, which decreased from €12.8m in Q1 2020 to €5.1m in Q1 2021, representing a drop of 60.4%.
  • The second most liquid equity was HSBC Bank Malta plc, as it recorded a total turnover of €88,102. The equity reached a low of €0.79 during the week but managed to recover, as it closed 2.4% higher at €0.84. A total of 108,844 shares changed ownership across 30 transactions.
    • HSBC Bank Malta plc announced that it had a good start to the year mainly driven by positive market movements in the insurance business and lower expected credit losses when compared to Q1 2020.
    • Reported profit before tax for Q1 2021 amounted to €9.9m, which represents an increase of €16.8m compared to the loss incurred in the same period last year of €6.9m.
    • Revenues were €12m higher when compared to Q1 2020. The increase in revenue is attributable to positive market impacts in the insurance manufacturing business resulting in higher insurance revenues of €13.8m.
    • The bank experienced a decrease in net interest income because of lower interest rates and subdued demand for lending because of the pandemic.
    • Customer deposits increased by €27m compared to December 31, 2020. The bank’s liquidity position remained strong and regulatory capital ratios continued to exceed regulatory capital requirements.
  • Last Thursday, Bank of Valletta plc held its 47th Annual General Meeting whereby all resolutions on the agenda were approved. The profit and loss account and balance sheet for the financial year from January 1, 2020 to December 31, 2020 and the directors’ and auditors’ reports thereon were approved.
    • The banking equity ended the week in the red at €0.89, equivalent to a 2.7% change in price. This was the outcome of 11 deals involving 25,855 shares.
  • Yesterday, Lombard Bank Malta plc (Lombard) announced that it obtained regulatory approval for the proposed final dividend and proposed bonus share issue.
    • With respect to the proposed bonus share issue, the Listing Authority has also approved the Bank’s application for admissibility to listing of 589,039 ordinary shares of a nominal value of €0.25 per share.
    • The proposed final dividend and proposed bonus share issue are being put before the forthcoming Annual General Meeting to be held on May 28, 2021 for approval by the Bank’s shareholders.
    • Three deals involving 1,750 Lombard shares were executed, as a last-minute trade yesterday pushed the price to €2.22. As a result, the equity ended the week 11% higher.
  • Malta Properties Company plc announced that the forthcoming Annual General Meeting will be held on July 15, 2021. Six deals involving 16,882 shares pushed the price 1.8% higher to €0.555.
  • Last Wednesday, MaltaPost plc published the unaudited condensed consolidated interim financial statements for the six-month period ended March 31, 2021.
    • The Group registered a profit before tax of €1.4m, versus €1.41m recorded in the same period of 2020.
    • Similarly, total revenue increased by 17.6% to €20.2m. Total expenditure rose to €19m from €15.9m, because of higher cross-border conveyance costs and losses associated with certain areas of the Universal Service Obligation (USO).
    • The outlook for the second half of the financial year remains challenging and difficult to forecast due to the pandemic-related uncertainties.
    • No trading activity was recorded during the week.
  • LifeStar Holding plc announced that it is extending the offer period of the Share Offer and the Bond Issue until May 28, 2021, and the offer period of the Exchange Offer until May 25, 2021.
    • No trading activity was recorded during the week.
  • The MSE MGS Total Return Index advanced by 0.2%, as it reached 1,118.88 points. Out of 21 active issues, six advanced while another 12 closed in the red. The 2.1% MGS 2039 (I) headed the list of gainers, as it closed at €129.00 – equivalent to a 5.7% change. Conversely, the 4.8% MGS 2028 (I) closed 1.5% lower at €132.47.
  • The MSE Corporate Bonds Total Return Index registered a 0.5% decline, as it closed at 1,117.32 points. A total of 52 issues were active, 19 of which traded higher while another 23 lost ground. The 4% SP Finance plc Secured 2029 was the best performer, as it closed 3.5% higher at €105.00. On the other hand, the 4% Merkanti Holding plc Secured € 2026 ended the week 2.9% lower at €100.01.
  • In the Prospects MTF market, four issues were active. The 5% Busy Bee Finance plc Unsecured € 2029 generated a total turnover of €5,050.

 

Upcoming Events 
Best Performers:
1. RS2+13.33%
24 MAY 2021MT: Grand Harbour Marina plc – Annual General Meeting2. LOM+11.00%
26 MAY 2021MT: BMIT Technologies plc – Annual General Meeting3. IHI+7.44%
26 MAY 2021MT: Main Street Complex plc – Annual General Meeting
26 MAY 2021MT: Simonds Farsons Cisk plc – Annual ResultsWorst Performers:
27 MAY 2021MT: GO plc – Annual General Meeting1. TRI-5.63%
2. BOV-2.73%
3. MSC-2.01%

 

 

 

Price (€): 21.05.2021Price (€): 14.05.2021Weekly Change (%)2021 Performance (%)
MSE Equity Total Return Index8,309.9768,172.6401.68-1.91
BMIT Technologies plc0.5000.510-1.963.73
Bank of Valletta plc0.8900.915-2.73-6.32
FIMBank plc (USD)0.3760.3760.00-24.80
Grand Harbour Marina plc0.6600.6600.00-5.71
GO plc3.5003.560-1.69-1.13
Harvest Technology plc1.5401.5201.32 4.05
HSBC Bank Malta plc0.8400.8202.44-6.67
International Hotel Investments plc0.6500.6057.44-9.72
Lombard Bank plc2.2202.00011.00-5.93
Loqus Holdings plc0.0970.0970.00-2.02
LifeStar Holding plc0.6000.6000.0020.00
MIDI plc0.3600.3600.00-19.64
Medserv plc0.8300.8300.005.06
Malta International Airport plc6.4006.4000.003.23
Malita Investments plc0.9000.9000.000.00
Mapfre Middlesea plc2.3802.3800.00-3.25
Malta Properties Company plc0.5550.5451.8311.00
Main Street Complex plc0.4880.498-2.01-2.40
MaltaPost plc1.2401.2400.00-6.77
PG plc2.1002.1000.005.00
Plaza Centres plc0.9000.9000.00-8.16
RS2 Software plc Preference Shares*1.8501.7803.930.00
RS2 Software plc 2.0401.80013.33-7.50
Simonds Farsons Cisk plc9.4509.4500.0021.15
Santumas Shareholdings plc1.3901.3900.000.00
Tigné Mall plc0.7500.7500.00-11.77
Trident Estates plc1.5101.600-5.63-9.04

* Trading commenced on May 3, 2021.

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]