MSE Trading Report for Week ending 22 April 2022
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The MSE Equity Total Return Index (MSE) closed in the red, as the increase in the value of the shares of Malta International Airport plc (MIA) was outweighed by declines in the two major banks. The MSE closed 1.3% lower at 7,538.198 points. A total of 18 equities were active, four of which headed north while another 10 closed in the opposite direction. Total weekly turnover amounted to €0.5m, generated across 86 transactions.
MIA gained 2.6% to advance to the €6 price level, and return to this year’s opening price. MIA was the most liquid equity during the week, as 10 trades worth €210,727 were executed.
In the banking sector, Bank of Valletta plc fell by 6% on Tuesday. This decline was partially erased yesterday when the equity ended the week at €0.80, hence 2.4% lower. Fifteen transactions worth €70,847 were executed.
Similarly, nine transactions of 20,826 HSBC Bank Malta plc (HSBC) shares pushed the equity in negative territory. HSBC registered a 7.2% negative change, ending the week at €0.77 after trading at a weekly high of €0.80.
On the other hand, Lombard Bank Malta plc (Lombard) ended the week in the green after two trades were executed in the final hour of trading. A total of 30,424 shares exchanged hands across eight transactions ending the week 1.1% higher at €1.85.
The board of Lombard has approved the annual report and financial statements for the financial year ended December 31, 2021.
The bank registered a profit before tax of €12.6m, a 21.8% increase over 2020. The group’s net interest income at €19.6m was 3.6% higher than the previous year. The increase in credit activity compensated for pressure on interest rates, especially in treasury operations. New lines of business also contributed to an increase of 10% in net fee and commission income. The decrease in other operating income was due to a one-off transaction in 2020.
The bank’s cost efficiency ratio was 60.8%, while that of the group stood at 81.9%. Though operating costs remained well under control, increased fees and costs associated with obligations to satisfy regulatory requirements, and the enhancement of the compliance function, all contributed to a higher cost base.
The share price of FIMBank plc depreciated by $0.012 or 5.5% to end the week at $0.206. On Wednesday, the bank traded at an all-time low of $0.192.
Telecommunications company GO plc, traded at a weekly high of €3.26 and a low of €3.18. Despite recovering Wednesday’s loss on Thursday, the equity fell by 0.6% yesterday, to end the week at €3.18. A total of 7,975 shares exchanged ownership over nine transactions.
In the property sector, AX Real Estate plc gained 5.5% to close the week at €0.58. Tigne Mall plc was active on five transactions of 25,200 shares. The share price increased by 0.7% to the €0.70 level.
Hili Properties plc surrendered the previous week’s gain with a 5.5% decline to end the week at the €0.24 price level.
Trident Estates plc headed the list of fallers with a drop of 12.3%, as a single deal of just 111 shares was recorded. The equity ended the week at €1.28.
Meanwhile, Malta Properties Company plc traded flat at €0.51.
International Hotel Investments plc closed unchanged at €0.57, as three transactions worth €6,623 were executed. This week the company reported the financial performance for 2021. These results were again impacted by Covid-19, this time for the full 12-month period compared to a nine-month period the year before. In the second half of the year, following vaccinations and the relaxation of restrictions and limitations, all the company’s businesses performed better, in particular instances matching the performance of 2019 month-on-month. Total revenue for the year under review increased to €129.3m from €91.9m in 2020, an increase of 41%.
On the strength of the increased revenue, the group recorded a gain in operating results before depreciation and fair value of €26.5m, an increase of €30.3m from the €3.8m registered in 2020. Despite the positive increase in turnover, the company registered a loss after tax of €27.5m.
The group registered a profit on total comprehensive income of €65m in 2021, against a loss of €123.9m registered in 2020. The share of profit of total comprehensive income attributable to the shareholders of IHI amounted to €21.5m for the year under review. The corresponding figure for 2020 was a loss of €97.8m.
At December 31, 2021 the group reported a working capital surplus of €53.6m relative to a negative working capital of €9.5m reported in 2020. A significant part of this positive shift is attributable to the new funds collected on a bond which was successfully launched and concluded in December 2021.
Meanwhile, Simonds Farsons Cisk plc ended the week at the €7.90 level, translating to a 3.7% negative movement in price. This was the result of a sole transaction of trivial volume worth €877. The company announced that the 75th AGM shall be held remotely on June 23, 2022.
In the IT sector, the share price of RS2 Software plc Ordinary shares (RS2) fell by 4.8% on Tuesday to the €1.60 level. The equity gained 3.1% on Friday, but this was not enough to recover Tuesday’s loss. RS2 finished the week at €1.65.
BMIT Technologies plc was only active on Wednesday, as four transactions of 22,000 shares dragged the share price by 2%. BMIT finished the week at the €0.50 price level.
A sole transaction of 50,000 M&Z plc shares kept the share price at the €0.75 level. The equity is up by 4.2% over its IPO price.
The board of M&Z plc announced that it shall be meeting on April 27, 2022 to consider and, if deemed fit, approve its annual report and the audited financial statements for the financial year ended December 31, 2021.
Furthermore, Mapfre Middlesea plc shares retracted by 6.5% to €2, following six deals of 4,870 shares.
Loqus Holdings plc ended the week unchanged at €0.19, despite trading at a weekly low of €0.18. This was the outcome of two deals of 10,000 shares.
Last Wednesday VBL plc held its AGM where all the resolutions were approved. A final net dividend of €160,000 equivalent to €0.00065 per share was also approved.
The board of Main Street Complex plc announced that on April 25, 2022 it is due to consider and, if deemed appropriate, approve the audited financial statements of the company for the financial year ended December 31, 2021.
The board of Grand Harbour Marina plc (GHM) has approved the financial statements for the period ended December 31, 2021, which will be submitted for the approval of the shareholders at the forthcoming AGM.
Revenue in 2021 contracted by €0.5m when compared to 2019 and 2020, as the company suffered numerous cancellations on superyacht visitors and lower superyacht seasonal bookings during the winter period, due to uncertainty of lockdowns and Covid restrictions.
The company registered EBITDA of €1.6m, hence €0.4m lower than 2020. With net finance costs of €0.8m, the company achieved a €0.11m profit after tax when compared to €0.47m in 2020. GHM paid no dividends during the year. The market capitalisation of GHM on the MSE on April 18, 2022 fell by €0.8m from the prior year, to €12.40m.
The MSE Corporate Bonds Total Return Index advanced by 0.3%, as it reached 1,137.850 points. Out of 58 active issues, 31 advanced while another nine closed in the red. The 6% MedservRegis plc Secured & Guaranteed € Notes 2020-2023 S1 T1 headed the list of gainers, as it closed at €101 – equivalent to a 3.1% change. Conversely, the 3.5% Bank of Valletta plc € Notes 2030 S1 T1 closed 2.5% lower at €98.50.
The MSE MGS Total Return Index registered a 0.9% decline, as it closed at 1,001.647 points. All 12 active issue lost ground. The 4.3% MGS 2033 (I) was the worst performer, as it closed 2.9% lower at €124.73.
In the Prospects MTF market, two issues were active, and both closed unchanged. A total of €9,402 was generated across four transactions.
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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]