MSE Index loses further ground

MSE Daily Trading Report, 27 August 2020

The MSE Equity Total Return Index registered a further 1.169% decline, reaching 7,518.015 points. A total of 11 equities were active, of which two headed north while another four closed in the opposite direction. A total turnover of €86,154 was generated across 30 transactions.

In the banking industry, Lombard Bank Malta plc approved the interim unaudited financial statements for the six months ended June 30, 2020. The bank recorded a profit before tax of €5 million, translating into a €1.2 million decline when compared to June 2019.

Loans and advances to customers increased marginally by 1%. Customer deposits rose by 4% while the resultant group net interest income of €9.3 million was 9% lower and remains the main revenue driver. Bank advances to deposits ratio was 61.4%, indicative of a healthy liquidity buffer. Both Common Equity Tier 1 ratio (CET1) as well as Total Capital Ratio stood at 15.9%, being well above the minimum requirement of 4.5% and 8%, respectively.

The board took note of the European Central Bank’s recommendation on dividend distribution in light of the Covid-19 pandemic and the relative Malta Financial Services Authority circular, stating that until January 1, 2021, no dividends are paid out and no irrevocable commitment to pay out dividends is undertaken by credit institutions for the financial years 2019 and 2020. Therefore, the board resolved to withdraw its recommendation for the payment of a final 2019 dividend.

The bank traded twice over 3,000 shares, worth €5,701. A 6.4% increase in price was recorded as it reached the €2.00 price level – resulting into the best performance for today’s session.

Bank of Valletta plc was active but closed unchanged at €0.90. Five deals involving 15,550 shares generated a total turnover of €14,025. Similarly, its peer, HSBC Bank Malta plc traded once over 15,000 shares, leaving no impact on the previous closing price of €0.80. Total turnover stood at €12,000.

The highest liquidity was recorded by Malta International Airport plc as total turnover amounted to €21,295. A total of 4,400 shares were spread over seven deals. The equity reached an intra-day low price of €4.80 but managed to recover the loss to close flat at €4.98.

Another positive performer for today’s session was Simonds Farsons Cisk plc as it registered a 0.7% movement in price. A sole deal of slim volume pushed the price to €7.45.

The company announced that the board is scheduled to meet on September 23, 2020, to consider and approve the interim accounts for the half-year period ended July 31, 2020, and the publication of the group’s 2020 financial analysis summary. The board shall also consider the declaration or otherwise of an interim dividend on all ordinary shares.

PG plc announced that the board shall be meeting today in order to consider and, if thought fit, approve its annual report and the audited consolidated financial statements for the year ended April 30, 2020.

The equity lost 7% as 7,500 shares changed hands across three transactions. The equity generated a total turnover of €12,900 as the price declined to €1.72.

Telecommunications company, GO plc, ended the session 4.2% lower over a single deal of 963 shares. The equity closed at €3.22 and registered a total turnover of €3,101. Meanwhile, its subsidiary, BMIT Technologies plc, was active but closed unchanged at €0.476. A total of 9,400 shares changed ownership over two deals, generating a total turnover of €4,474.

RS2 Software plc announced that the directors approved the interim financial statements for the period ended June 30, 2020. Revenue declined by 3.4% to €10.8 million when compared to the first six months of 2019. A loss before tax of €3.1 million was recorded versus a profit of €0.3 million recorded during the same period of the previous year. Earnings per share stood at a negative €0.0119, while during the previous year, a positive €0.0001 was recorded.

Total assets increased by €3 million to €34.8 million. A 25% decline in total equity was registered as it amounted to €10.5 million. Meanwhile, total liabilities were up by 37% to €24.3 million. The board did not declare an interim dividend.

During today’s session, the equity recorded a 0.9% fall in price as it reached the €2.28 price level. This was the outcome one transactions of 500 shares.

The worst performance of a 10% drop in price was recorded by Mapfre Middlesea plc, as it ended the session at €1.80. Six deals involving 5,659 shares were executed, worth €10,732.

A sole deal in Harvest Technology plc shares did not alter the equity’s previous closing price of €1.46.

In the property sector, Trident Estates plc announced that the board is scheduled to meet on Wednesday, September 16, 2020, in order to consider and approve the unaudited financial statements for the six months ended July 31, 2020.

The equity was not active during the session.

Main Street Complex plc announced that the board approved the interim financial statements for the six-month period ended June 30, 2020. The company generated a 46% decrease in revenue as it stood at €0.2 million. Profit before tax amounted to €98,379, translating into a 62% decline, due to the exceptional circumstances of the Covid-19 pandemic. On July 29, 2020, the board approved the payment of a dividend for the year ended December 31, 2019, of €161,000. In light of the current circumstances, the board does not consider it prudent to recommend the payment of an interim dividend at this point in time.

No trading activity was recorded.

In the Corporate Debt market, 22 issues were active, of which six registered gains while another seven closed in the red. The 4.4% Von der Heyden Group Finance plc Unsecured € 2024 headed the list of gainers with a 1.5% increase, to close at €101.50. On the other hand, the 3.5% Simonds Farsons Cisk plc Unsecured € 2027 declined by 2.72%, reaching the €107.01 price level.

In the Sovereign Bond market, eight issues were active, of which gainers and losers tallied to two a-piece. The 5.2% MGS 2031 (I) was the top performer as it closed 0.39% higher at €149.00. Conversely, the 5.25% MGS 2030 (I) lost 3.05%, ending the session at €143.00.

In the Prospects MTF market, the the 5% Borgo Lifestyle Finance plc Secured Callable 2026-2029 was active as it closed 0.01% higher at €98.00.

The Equities traded today were:

The Corporate Bonds traded today were:

The Government Stocks traded today were:

The Prospects 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].