MSE Trading Report for Week ending 11 February 2022
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The MSE Equity Total Return Index extended its negative trend as it registered a further decline of 2.1%, to close at 7,686.906 points. From a total of 15 active equities, one headed north while another 10 lost ground. Investor participation was lower than the previous weeks, as a turnover of €0.8 million was generated across 114 transactions.
Bank of Valletta plc (BOV) was the most liquid equity this week, as 63 trades of 490,245 shares generated a turnover of €393,551. BOV share price fluctuated between a weekly high of €0.845 and a record low of €0.78, closing 5.3% lower at €0.80.
Last Tuesday, the bank was informed that the Tribunal of Torre Annunziata had delivered its decision against the bank totaling an amount of €370 million including legal interests and costs. In line with advice received from legal counsel, the bank shall be immediately appealing this decision.
Under these proceedings, the bank was being requested to pay an amount equivalent to the value of the shares of a company which had been settled on trust with the bank as Trustee, and which value the plaintiffs were alleging amounts to €363 million. Bank of Valletta disputed this claim, as shares held were deemed worthless following the bankruptcy of Deiulemar Group. The bank held no other assets on behalf of the Deiulemar Group. Pending such appeal, the bank assured the market that it is well capitalised and its operations will not be adversely impacted by this decision.
In 2018, the bank had placed in excess of €363 million in the hands of an independent entity, following an order from the Tribunal of Torre Annunziata as precautionary security. No new payment will be made as a result of this decision.
HSBC Bank Malta plc share price dropped by 2.2% to finish the week at €0.90 as a result of four trades across 7,712 shares. Trading activity included a drop of 3.8% on Tuesday which was partially recovered yesterday with a 1.7% increase.
Lombard Bank Malta plc shares followed suit as one trade involving 2,193 shares eased the share price 3.1% lower, closing at €1.91.
Malta International Airport plc ended the week unchanged at €5.85, as 7,932 shares exchanged ownership across five transactions.
Meanwhile, telecommunications company GO plc recorded a decline in its share price, as it closed at the €3.16 level. The 1.9% drop was the outcome of three transactions worth €6,388. Similarly, its subsidiary BMIT Technologies plc, ended the week in negative territory with a 0.8% change in price – down to €0.486. Six deals over a volume of 222,893 shares were executed.
The share price of International Hotel Investments plc (IHI) trended 4.1% lower. The equity finished at €0.58, a price last seen in the final week of 2021. IHI traded four times across 8,021 shares.
Harvest Technology plc finished in the red with a fall in value of 4% closing at €1.46. A total of 21,091 shares traded across five transactions.
PG plc shares held on to the €2.20 price level as six trades on a volume of 62,480 shares were recorded. Malta Post plc followed a similar path as it closed unchanged at €1.19, as a result of a single trade on slim volume. during Monday’s trading session.
The only positive performing equity during the four-day trading week was Malta Properties Company plc (MPC). The equity advanced by 2%, as four trades over 6,051 shares were recorded. MPC closed at €0.51 generating a turnover of €3,086.
AX Investments plc announced the basis of acceptance in respect of the combined offer by AX Real Estate plc of 33,333,333 ordinary ‘A’ shares and €40,000,000 in 3.5% unsecured bonds redeemable in 2032. The company announced that all applications were accepted in full. The ordinary ‘A’ shares and the bond are expected to be admitted to the Official List of the Malta Stock Exchange on 15th February 2022, and trading is expected to commence from 16th February 2022.
The MSE Corporate Bonds Total Return Index advanced by 0.2% reaching 1,142.305 points. Out of 37 active issues, the 4.35% SD Finance plc Unsecured € 2027 bond registered the highest turnover of €113,387 across eight transactions, as it closed at €100.70. A total of 128 transactions were executed generating a turnover of €1.3m.
The MSE MGS Total Return Index declined by a further 2.2% as it closed at 1,047.151 points. A total of 18 issues were active, the most liquid of which was the 4.1% MGS 2034 (I), as it closed at €130.75.
In the Prospects MTF Market, three issues were active. The 4.25% CC Finance Group plc Unsecured Callable 2024-2026 was the most liquid and closed unchanged at €101.00.
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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]