MSE Trading Report for Week ending 27 May 2022

 

MSE Equity Total Return Index: 

Highlights:

The MSE Equity Total Return Index returned to negative territory, despite gains in the shares of Malta International Airport plc (MIA), HSBC Bank Malta plc (HSBC) and Simonds Farsons Cisk plc (SFC). The index retracted by 0.2% to 7,797.089 points, as 100 transactions were executed over 19 equities, where losers and gainers tallied to seven. A total weekly turnover of €0.5m was generated.

On Tuesday APS Bank plc announced that the MFSA approved the prospectus to be published in connection with the IPO, as well as the bank’s application for authorisation for admissibility to listing of the bank’s ordinary shares on the official list of the MSE. The bank will be issuing 100m shares, with an over-allotment option of an additional 10m shares, at an issue price of €0.62. Applications will be made available from authorized intermediaries after June 1, 2022 and the offer shall close on June 17, 2022 or earlier at the bank’s discretion.

In terms of weekly performance, Malta International Airport plc extended its winning streak, as it added 1.7% to the previous week’s gain. A total of 15 transactions worth €138,135 were executed, as the equity’s price fluctuated between a weekly low of €5.75 and a high of €6, this week’s closing price.

The food and beverage company, SFC posted a 5% gain, as activity soared to €153,000. A total of 14 transactions were executed, as the equity closed the week at €8.25, after trading at a weekly high of €9.

Last Wednesday, the board met and approved the annual report and financial statements of the company and the group for the year ended January 31, 2022.

The group profit before tax for financial year (FY) 2022 amounted to €12.2m, up by €7.8m when compared to the previous year. This significantly improved result compares well with the profit of €12.3, in FY 2020, the last pre-pandemic reporting period. The marked improvement in profitability resulted from increases in both revenues and gross margins, as well as cost efficiencies achieved. Net movement on provisions, including lower net provisions against trade and other receivables arising from the proactive management of trade credit, have also contributed to the result to the extent of €1.5m on a year-to-year comparative basis, with part of the precautionary COVID-induced provisions established in FY 2021 being released during the year under review.

EBITDA rebounded back to pre-COVID levels and amounted to €22.7m for the year, as compared to €14.9m in FY 2021. This increase of 52% reflects the improved profits reported for the year and is evidence of the cash generation capacity of the group’s businesses. The group’s net borrowings as at January 31, 2022 amounted to €10.3m. This represents a decrease of €8.3m from the previous year.

Gearing at the year-end stood at 12.6%, when compared with 16.8% at the end of FY 2021. Total equity of the group amounted to €129.2m, when compared to FY 2021 of €119.7m.

In the banking sector, HSBC Bank Malta plc almost ended the week unchanged until a last minute deal locked the closing price of €0.79, higher by 1.3%. A total of 14,200 shares were executed across nine deals.

FIMBank plc took the lead, as its share price advanced by 18.3% to $0.22 on a sole transaction of just 1,100 shares. The bank announced that the company’s AGM will be held remotely on June 14, 2022.

Moreover, Bank of Valletta plc (BOV) kept the previous week’s closing price. BOV was active across 21 transactions involving 96,464 shares, as the share price oscillated between a weekly low of €0.85 and a high of €0.905. The banking equity finished the week at €0.89.

Meanwhile, Lombard Bank Malta plc closed flat at €1.83 as a result of a sole deal on trivial volume. The company announced that last Thursday it held its AGM, during which all the resolutions on the agenda were approved, including a net dividend of €0.0195 and the issuance of 596,893 ordinary shares as a bonus issue, with a nominal value of €0.25 per share.

In the property sector, Malta Properties Company plc (MPC) was the only property equity to close higher. Four transactions involving 6,643 shares resulted in a 3% increase in price, as it closed at €0.52.

Last Thursday, MPC announced that it has submitted an application to the MFSA for the admissibility to listing on the official list of the MSE of a bond issuance programme of up to €50m and requested the approval of a base prospectus in relation to the same issue from the MFSA.

VBL plc was the worst performing equity, as one transaction of 10,000 shares dragged the equity 9% lower to €0.25.

Similarly, MIDI plc lost 1.1% of its share price, as 11,000 shares exchanged ownership across three transactions. The equity ended the week at €0.376.

Meanwhile, the other active property companies closed unchanged. AX Real Estate plc shares, closed at €0.55 on four deals of 41,010 shares and Hili Properties plc maintained the €0.25 price. The equity was active on two deals of slim volume worth just €1,138.

In the IT Services sector, RS2 Software plc Ordinary shares continued to lose ground with a decline of 0.6%, to close the week at €1.63. The equity was active across six deals of 6,080 shares.

On the other hand, BMIT Technologies plc (BMIT) shares advanced to the €0.484 level. The equity registered a decline on Monday but recovered on Thursday, ultimately recording a 1.7% gain. BMIT announced that last Tuesday it held its AGM, during which all the resolutions on the agenda were approved.

GO plc closed in the red, as 9,000 shares changed ownership over six transactions. The equity closed 2.5% lower at €3.12. The company announced that last Wednesday it held its AGM, during which all the resolutions on the agenda were approved.

The share price of International Hotel Investments plc retracted by 6.7% to the €0.70 level on Tuesday. This was the outcome of two transactions of 38,000 shares.

Grand Harbour Marina plc closed at €0.72, as 13,500 shares changed hands over a sole transaction. This translated into a fall of 2.7%.

Plaza Centres plc was active on Tuesday, after 25,000 shares exchanged ownership four times. The equity registered a 1.2% increase, closing at €0.82.

The share price of Tigne Mall plc closed unchanged at €0.70, as 2,250 shares changed ownership across a single trade.

Two deals of 5,100 Mapfre Middlesea plc shares translated into a 1% decline to end the week at €1.96.

The board of Main Street Complex plc announced that in the AGM held on May 23, 2022 all the ordinary resolutions put forward were approved.

The MSE MGS Total Return Index declined by a marginal 0.1%, as it reached 988.745 points. Out of 15 active issues, six registered gains while another seven lost ground. The 4.8% MGS 2028 (I) was the top performer, as it closed 0.8% higher at €119.94. Conversely, the 3.3% MGS 2024 (I) lost 2.9%, ending the week at €106.19.

The MSE Corporate Bonds Total Return Index edged marginally lower, as it closed at 1,144.814 points. A total of 57 issues were active, 14 of which advanced while another 23 traded lower. The 3.5% Bank of Valletta plc € Notes 2030 S2 T1 headed the list of gainers, as it closed at €99.75 – equivalent to a 1.3% increase. On the other hand, the 4.5% Grand Harbour Marina plc Unsecured € 2027 closed 4.7% lower, reaching €100.11.

In the Prospects MTF market, four issues were active. The 4.75% KA Finance plc Secured Callable Bonds 2026-2029 was the most active, as it generated a total turnover of €14,098.50.

Upcoming Events 
30 May 2022 MT: Grand Harbour Marina plc – Dividend Payment Best Performers:
02 June 2022 MT: Bank of Valletta plc – AGM
08 June 2022 MT: Lombard Bank Malta plc – Dividend Payment
09 June 2022 MT: International Hotel Investments plc – AGM
14 June 2022 MT: FIMBank plc – AGM
15 June 2022 MT: Bank of Valletta plc – Shareholders Meeting Worst Performers:
16 June 2022 MT: MIDI plc – AGM
16 June 2022 MT: Malita Investments plc – AGM
17 June 2022 MT: Tigne Mall plc – AGM

 

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]