The MSE Equity Total Return Index registered a marginal increase of 0.05 per cent as it ended the week at 9,518.124 points. A total of 23 equities were active, out of which 10 traded higher while another nine closed in the red. A total weekly turnover of over €1.7 million was generated over 236 transactions.

HSBC Bank Malta plc was the most active equity as €444,366 were traded over 53 deals. The equity closed the week with a 1.9 per cent gain as it closed at €1.07 after having fluctuated between a weekly low of €1.05 and a high of €1.14.

Last Tuesday, the bank held a meeting during which the preliminary statements of annual results, for the year ended December 31, 2019, were approved. Adjusted profits exceeded management expectations as it stood at €45.3 million, translating into a 24 per cent increase from the previous year, mainly due to the continued focus on cost reduction and credit quality. If the impact of a one-off restructuring provision is taken in to account, pre-tax profit amounts to €30.7m. That is, a 20 per cent decrease or €7.8m over the previous year.

Reported profit attributable to shareholders amounted to €20.2 million as earnings per share stood at 5.6 cents per share versus an 8.0 cents during the same period last year. Moreover, the bank’s net interest income advanced by 1 per cent to €110.1 million, when compared to 2018. Net trading income has also increased by €1.8 million as a result of a fair value gain on VISA shares.

Meanwhile net non-interest income marginally declined with strong fee performance within commercial banking. This was due to the new fees offset by a reduction in fee income within insurance due to the disposal of a specific insurance portfolio in December 2018. Net loans and advances to customers increased by 5 per cent to €3,257m while deposits grew by two per cent to €4,977m.

The bank’s capital ratios registered a positive performance as CET1 increased to 16.4 per cent, in line with its strong capital base and compliance with the regulatory capital requirements. This increase was also driven by a €13 million net dividend paid from the insurance subsidiary.

Total dividend for 2019 adds up to 3.8 cents as the final gross dividend will be 2.1 cents per share (gross of tax), together with the gross interim dividend of 1.7 cents per shares paid in September 2019. The final dividend shall be paid on April 15, 2020 to all shareholders listed on the bank’s register as at March 9, 2020.

Meanwhile, Bank of Valletta plc was active over 42 deals with a spread of 200,762 shares. The bank lost 0.94 per cent as it ended the week at €1.05. On Friday, the Bank announced that the next Annual General Meeting (AGM) shall be held on May 15, 2020.

Lombard plc closed the week in the red, as 74,574 shares changed hands over nine deals. This resulted into a 5.26 per cent fall in price as it closed at €2.16.

Telecommunications company GO plc traded 0.48 per cent lower on Wednesday as seven deals involving 29,768 shares were executed. The loss was erased on Friday as 8,442 shares were traded over two transactions. As a result, the equity closed unchanged at €4.20. Its subsidiary, BMIT Technologies plc, was up by 0.96 per cent as it closed the week at €0.525. A total of 100,050 shares changed ownership over 10 deals.

Global payments software and managed services provider, RS2 Software plc, registered 3.28 per cent rise. The equity closed at an all-time-high price of €2.52, as 26 deals involving 66,553 shares were executed. Yesterday, the equity also reached an intra-day high price of €2.56.

Another positive performer was MIDI plc, as the equity advanced by nearly three per cent

Malta International Airport plc kicked off the week on a positive note, as it reached the €7.00 price level. However, the gain was erased until end of week as it closed at €6.90. A total of 29 transactions with a mix of 37,526 shares were executed.

Moving on to the property sector, six equities were active. The best performance was recorded by Santumas Shareholding plc. A sole deal of 648 shares pushed the price upwards by 7.14 per cent, ending the week at €1.50.

Another positive performer was MIDI plc, as the equity advanced by nearly three per cent to close the week at €0.49. A total of 11,000 shares changed ownership across three transactions. Similarly, Trident Estates plc moved higher by 1.82 per cent to finish at €1.68.

On Wednesday, the board of Malta Properties Company plc (MPC) announced that the annual report and consolidated financial statements for the year ended December 31, 2019 were approved. These shall be submitted for the approval of the shareholders during the next AGM, which will be held on May 27, 2020.

The Group’s revenue was up by 3.5 per cent from the previous year as it amounted to €3.43 million. Meanwhile, its operating profit has declined by 6.6 per cent as it stood at €2.12 million. During 2019, the company continued to seek investment opportunities. Profit before tax decreased by €9.16 million from the previous year, as it reached €3.62 million. This is mainly due to a lower fair valuation gain as well as a lower gain on disposal. In 2018, the promise of sale agreement for the St George’s Exchange and the sale of the old Sliema Exchange positively impacted the company’s annual results. However, the Group’s revenue is secured by the long-term leases with several tenants while revenues are expected to increase in line with inflation and with rents from new developments.

MPC’s financial position is still strong. Its total non-current assets have increased by 4.56 per cent, as it stood at €76.74 million while current assets were down by 18.6 per cent since the previous year, as it amounted to €7.44 million. The main movements relating to the cash conversion of inventories sold were partly set-off by the dividend payment made during the year 2019. Moreover, the company is still relatively unleveraged with a gearing ratio of 0.39 and a loan to value rate of 0.27.

A final net dividend of €0.01 per share, shall be recommended for approval at the AGM. The payment of this net dividend, which sums up to over €1 million, will be paid on June 1, 2020 to all shareholders on the register as at April 28, 2020.

The equity lost 0.75 per cent to close at €0.665. Six deals involving 43,076 were executed.

Tigne’ Mall plc lost ground, as 28,429 shares changed hands over five transactions. The equity closed 2.22 per cent lower at €0.88.

Yesterday Malita Investments plc traded once over 11,200 shares. The equity’s previous week’s closing price of €0.89 was not impacted.

Yesterday, the directors of Loqus Holdings plc approved the half-yearly report for the six months ended December 31, 2019. The company recorded a positive 121 per cent change in profit before tax, as it ended the year at a profit of €23,074 versus the loss of over €110,000 in the previous year. This results into a 0c7 profit per share. The equity traded once on slim volume last Monday, closing 2.56 per cent higher at €0.08.

A sole deal of 8,000 MaltaPost plc shares dragged the price by 2.99 per cent, as it closed the week at €1.30. Mapfre Middlesea plc also closed in the red at €2.28 – translating into a 3.39 per cent decline. This was the outcome of five deals with a mix of 10,724 shares.

Retail conglomerate, PG plc registered a positive performance, as it hit the price of €2.00. Nine deals involving 16,160 shares pushed the price 1.52 per cent higher. On a similar note, Plaza Centres plc was up by 1.98 per cent, as 29,000 shares changed hands across four transactions to close at €1.03.

The worst performer was Grand Harbour Marina plc as it registered a negative 15.23 per cent change in price, to close at €0.462. Two deals involving 10,000 shares were executed.

A single trade of 6,655 Harvest Technology plc shares sent the price 1.35 per cent higher, to return to the €1.50 price level.

On the other hand, Medserv plc traded once yesterday over 1,000 shares. As a result, the equity declined to €1.03, translating into a 5.5 per cent decline.

Meanwhile, Simonds Farsons Cisk plc was active but closed unchanged at €11.00. The equity traded three times over a spread of 2,081 shares last Wednesday. Similarly, 12 deals involving 103,710 International Hotel Investments plc shares did not alter the equity’s previous week’s closing price of €0.80.

In the Corporate Bonds market, 42 issues were active, of which 22 headed north while another seven closed in the opposite direction. The 5.8% International Hotel Investments plc 2021 headed the list of gainers as it closed at €104.40 – translating into a 2.45 per cent increase in price. On the other hand, the 5% Global Capital plc Unsecured € 2021 closed one per cent lower at €98.00.

In the sovereign debt market 19 issues were active - 14 advanced while another four lost ground. The 3% MGS 2040 (I) registered the best performance with a 1.25 per cent increase to €142.95. Conversely, the 2.4 per cent MGS 2041 (I) traded 0.49 per cent lower at €130.00.

In the Prospects MTF market, seven issues were active, as the 5.35% D Shopping Malls Finance plc € Unsecured 2028 traded higher and closed at €99.35.

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, on 2122 4410, or e-mail info@jesmondmizzi.com

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