MSE Trading Report for Week ending 13 August 2021

• The MSE Equity Total Return Index (MSE) closed the week marginally lower, with a 0.2% decline, to finish at 8,007.572. The negative performance suffered by the major banks and by Santumas Shareholdings plc dragged the equity index lower – albeit partially compensated on the back of strong performance across shares within the property sector, as well as Lombard Bank Malta plc. Total weekly turnover increased to €0.6m. 19 equities were active, as gainers and fallers tallied to seven.
• In the banking industry, HSBC Bank Malta plc saw its shares lose 3.6% during this week. This drop was a result of 13 transactions, involving 55,232 shares. The bank’s shares are currently down by 11.1% on a year-to-date basis.
• Bank of Valletta plc (BOV) shares eased by 0.6%. The bank’s equity recorded 12 trades of 60,751 shares, with a trading value of €54,411. BOV shares finished the week at €0.89 and is currently 6.3% lower since January.
• The board of FIMBank plc met on August 12, 2021 to approve the consolidated and the Bank’s Interim Financial Statements for the six months ended June 30, 2021. The FIMBank Group reported an after-tax profit of $1m, compared to a $19.4m after-tax loss registered for the six months ended June 30, 2020.
• The group’s net operating revenues increased by 16% from $19.2m to $22.1m. Net interest income dropped by 23% to $12.7m. Net fees and commission rose by 18% to $5.8m, as the group recorded new transactions and business volumes picked-up. Operating expenses for the first six months increased by 12% when compared to the same period last year. The group also decided to release $0.9m of net provision for credit losses. This decision was driven by an improving credit environment.
• From a balance sheet point of view, both assets and liabilities increased by 1% from end 2020. Furthermore, total equity declined by $2m due to a downward valuation of financial assets held at fair value. No trading took place during the week.
• GO plc was the most liquid equity during the week, as 17 trades involving 41,847 shares led to a decline of 1.7% in the telecommunications company’s share price, ending the week at the €3.40 price level.
• The board of GO plc approved the group interim unaudited financial statements for the six-month period ended June 30, 2021. Group revenue in the first six months of 2021 amounted to €93.9m, an increase of €2.3m, or 2.5%, over the comparative period in 2020. The group cost of sales and administrative expenses amounted to €84.7m, a net increase of €3m over 2020.
• Consolidated EBIDTA was down from €35.5m in the same period during 2020 to €34.8m as at June 2021. Cash generation from operations experienced an increase up until June 2021 when compared to the first six months of last year. In June 2021, GO plc issued 10-year unsecured bonds at a fixed coupon of 3.5% with an aggregated principal amount of €60m. The bonds issued were fully subscribed and started trading on July 6, 2021.
• The board resolved to distribute an interim dividend of €0.07 per share and will be payable on August 31, 2021 to shareholders on the share register as at August 18, 2021.
• Its subsidiary BMIT Technologies plc (BMIT) experienced a drop of 1.2% in its share price, as six trades with a trading value of €38,437 were involved. BMIT shares closed the week at €0.49.
• RS2 Software plc shares closed the week unchanged at €1.76. One transaction with a trading value of €10,384 was recorded. Similarly, the company’s preference shares traded flat and closed at €1.80, as three trades over 2,416 shares were executed.
• Harvest Technology plc continued to lose ground, as three transactions involving 7,870 shares were recorded. The company ended the week at the €1.55 price level.
• Malta International Airport plc (MIA) shares lost some of last week’s gain, as four trades of 4,020 shares dragged the Airport’s equity 0.8% lower, to close the week at €6.25. On a year-to-date basis, MIA is trading 0.8% higher.
• Last Tuesday, MIA published last month’s traffic results, showing a total passenger movements of 311,692, recouping 39% of July 2019 traffic levels.
• Throughout the month, travel opportunities for the local market continued to increase as French flag-carrier Air France launched three weekly flights to Paris Charles de Gaulle airport and two brand-new routes to Chania and Cagliari were added to Malta International Airport’s summer schedule, among other traffic developments.
• July also saw the return of the United Kingdom among Malta International Airport’s top five markets. This follows the easing of travel restrictions between the two countries and the subsequent increase in flight frequencies on several UK routes, as well as the introduction of additional routes by a number of airlines.
• PG plc ended the week unchanged at the €2.20 price level. One trade during Tuesday’s trading session involving just 433 shares was recorded. During the week, PG plc announced that its board will be meeting on August 25, 2021 to consider and, if thought fit, approve its Annual Report and the audited financial statements for the year ended April 30, 2021.
• Santumas Shareholdings plc was this week’s worst performer, as the equity plummeted by 46% to close at a multi-year low of €0.75. Four trades involving 36,598 shares were recorded. The company announced that its forthcoming Annual General Meeting is scheduled to be held on October 29, 2021.
• Trident Estates plc shares were this week’s best performer, after recording a week-on-week increase of 12.1%. One trade during Tuesday’s session ensured that the company’s share price ended the week in the green. The company’s equity closed the week at €1.57.
• The MSE MGS Total Return Index declined by 0.2%, to end the week at 1,114.074 points. The 2.2% MGS 2035 was the best performer, as it gained 1%, while the 2.3% MGS 2029 suffered the biggest decline, as it dropped by 2.6%.
• The MSE Corporate Bonds Total Return Index ended the week 0.1% higher at 1,140.330 points. The 4.5% Hili Properties plc Unsecured € 2025 gained 2% and ended the week as the best performer. On the other hand, the 3.75% AXI 2029 S2 suffered the biggest drop, as it declined by 5.6%
• In the Prospects MTF market, activity was spread across nine issues, as turnover amounted to €131,968. The 4.75% KA Finance plc Secured Callable Bonds 2026-2029 was the most liquid, as weekly turnover reached €63,075.

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]