MSE Index ends the week in the red

MSE Daily Trading Report, 14 August 2020

The MSE Equity Total Return Index declined by a further 0.615% to close the session at 7,572.779 points. A total of 10 equities were active during the session of which six lost ground while two closed higher. A total turnover of €43,258.23 was generated over 22 deals.

In the banking sector, all four equities were active. Bank of Valletta plc traded eight times over a spread of 10,853 shares. The bank’s previous closing price of €0.944 was not impacted despite reached an intra-day low price of €0.91. Total turnover stood at €10,132.

Three deals involving 5,476  HSBC Bank Malta plc shares dragged the price by 2.94% into the red. The equity generated a total turnover of €4,518 as the price reached the €0.825 price level.

Lombard Bank Malta plc also declined by 9.8% to €1.84 as 5,695 shares were spread across two transactions. Total turnover amounted to €10,479.

Yesterday, the board of FIMBank plc approved the consolidated and the bank’s interim financial statements for the half-year period ended June 30, 2020.  The group reported a loss before tax of $15.2 million versus a profit before tax of $9.6 million registered in 2019. Higher impairment charges and fair value adjustments amplified the impact of the Covid-19 pandemic on the group’s performance.

The group’s net operating income declined by $5.2 million to $22.6 million, translating into a 19% decline. Net interest income increased by 4% to $16.6 million, as continued improvements in the cost of funding structure of the group offset the reduction in interest income from lower commercial asset levels and higher liquidity assets. Dividend income decreased drastically from $3.9 million to $0.2 million as the group reduced its investment in a trade-asset fund which contributed most of the dividend income in prior period.

As at June 30, 2020, total consolidated assets stood at $1.74 billion, equivalent to an 8% decrease from the $1.89 billion recorded at end of 2019. Similarly, total consolidated liabilities, as at June 30, 2020, stood 8% lower at $1.48 billion, versus the $1.61 billion reported at end of 2019.

Group equity as at financial reporting date stood at $259 million, with CET1 and CAR rations standing at 18.09%, compared to a 16.9% recorded in December 2019. The changes in equity reflect the loss for the first six months of the year and other changed to reserves, whereas the improvement of the CET1 ratio also reflects a reduction in risk-weighted assets.

A sole deal of 3,750 shares resulted into a negative 5.13% change in price. The bank ended the session at $0.37.

Similarly, Malta International Airport plc announced its July results. The airport registered 152,818 passenger movements last month, translating in a drop of 80.9% in traffic when compared to July 2019.

Last July’s full-month traffic was roughly equal to the number of passengers registered in the first week of July 2019. This contraction in passenger traffic was observed together with a drop of 710.3% in aircraft movements and a 72.1% decline in seat capacity. The seat load factor (SLF) for the month, measuring the percentage of occupied seats on flights operated to and from Malta International Airport, stood at 59.7%.

A passenger performance analysis conducted by Airports Council International (ACI), showed that, on average, European airports registered a 78% decrease in passenger numbers last July. According to the same analysis, Italy, Germany, the United Kingdom and France, all of which were among Malta International Airport’s top five markets for July 2020, reported drops in passenger numbers that ranged between 74% and 87%.

The equity gained 4.17% as it closed at €5.00. Three deals involving 1,327 shares were executed, worth €6,635.

Telecommunications Company, GO plc¸ traded once on slim volume, to close 2.44% higher at €3.36.

RS2 Software plc was active over a single transaction of 1,280 shares, worth €2,970. The equity’s previous closing price of €2.32 was not altered.

In the property sector, Tigne’ Mall plc announced due to the current situation, the company will be holding this year’s Annual General Meeting remotely on September 9, 2020. The equity lost 2.78% over a sole deal of 9,000 shares. A total turnover of €6,300 was recorded as the price was down by 10 cents to €0.70.

Simonds Farsons Cisk plc declined by 6.67% to €7.00 over a sold deal of slim volume. Similarly, MIDI plc lost 5.71% as it closed at €0.33.

In the Corporate Debt market, a total of 11 issues were active during the session of which seven closed in the red while one closed higher. The 6% International Hotel Investments plc € 2024 was the only bond price which appreciated, closing 0.99% higher at €102.10.

In the Sovereign Bond market, a total of 9 issues were active of which gainers and losers tailed to four apiece. The 2.1% MGS 2039 (I) registered the largest decline during the session as it closed 0.98% lower at €126.75. Meanwhile, the top performance was recorded by the 4.1% MGS 2034 (I) as it closed 5.42% higher at €146.00.

In the Prospects MTF market, five issues were active, if which two declined while the 5% The Convenience Shop Holding plc Unsec Call € 2026-2029 closed 0.5% higher at €101.00.

The Equities traded today were:

The Corporate Bonds traded today were:

The Government Stocks traded today were:

The Prospect MTF Bonds traded today were:

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. Jesmond Mizzi Financial Advisors Limited is licensed to conduct investment services by the MFSA and is a Member Firm of the Malta Stock Exchange. 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].