The MSE Equity Total Return Index suffered a week-on-week decline of 0.8 per cent to 7,912.252 points. As a result, on a year-to-date basis the local equities’ index is 6.6 per cent lower. Five out of the 19 traded equities headed north, with Bank of Valletta plc, Malta International Airport plc and Loqus Holdings plc among the positive performers. On the flip side, eight equities fell in value, while six remained unchanged.
In the banking industry, Bank of Valletta plc (BOV) advanced by 0.6 per cent to capture the €0.87 price level. Activity in the bank’s shares was spread over 17 trades with a value of €69,572 across 80,351 shares. The equity’s price fluctuated between a weekly low of €0.86 and a high of €0.88. Since January, BOV shares are down 8.4 per cent.
Last Tuesday, the bank issued its interim directors’ statement. For the nine-month period to September 30, 2021, the bank’s profit before tax was €5.9m higher than the same period in 2020.
In addition, the third quarter results were better than those achieved in the third quarter of 2020, as the growth in overall interest-earning assets outweighed the reduction in net interest margin. The strength in profitability reflects the ongoing but as yet incomplete recovery from the COVID-19 pandemic.
Commission income was up by 12 per cent, compared to the previous quarter, hence making the third quarter the strongest in 2021. In addition, the number of new requests for supportive measures have decreased
during the quarter, while 97 per cent of business customers are repaying as planned.
The bank added that 85,000 less cheques were encashed, indicating a shift to digital and other alternative channels, as well as a 33 per cent increase in mobile banking transactions.
Circa €1m on fair value gains on equity holdings contributed to higher revenues, while during the first nine months of 2021, the net interest income was €111.6m, up by two per cent compared to the same period last year.
Operating expenses were higher by one per cent than the same period in 2020. This increase reflects the cost of refunding customers targeted in fraud scams (circa €1.2m), higher employee compensation and increased regulatory costs, mainly contribution to the Deposit Guarantee Scheme.
Loans and advances to consumers increased by €248m from the fourth quarter of 2020, with home loans accounting for 70 per cent of overall growth. MDB COVID-19 Assist Loans have also been steadily declining at the bank. Customer deposits have overall increased by 4.3 per cent or €482m since December 2020, with an increase of 8.3 per cent and 0.4 per cent in retail and business clients respectively, while a decline of 11.3 per cent was recorded for international clients.
HSBC Bank Malta plc (HSBC) closed unchanged at €0.80 on weaker than usual volumes, as 8,434 shares exchanged ownership over three trades. Similar to BOV, HSBC shares are below their January price level by 11.1 per cent.
The price of Lombard Bank Malta plc shares tumbled 7.6 per cent to the €1.83 level across 3,000 shares over a couple of deals.
In the telecommunications sector, GO plc eased by 1.2 per cent, as nine trades involving 7,680 shares were recorded. The share price at the end of yesterday’s session read €3.26.
BOV’s profit before tax was €5.9m higher than the same period in 2020
BMIT Technologies plc (BMIT) held on to the €0.484 price level, as it was involved in a sole trade across 6,381 shares. On a year-to-date basis, BMIT shares are up 0.4 per cent.
Loqus Holdings plc increased from €0.064 last week to €0.21 on the back of positive financial results, announced last week. Despite the price increase, trading activity was spread over five trades with a total turnover of €3,608. The equity closed the week at an 11-year high.
Hotel operator International Hotel Investments plc shed 0.8 per cent, as 5,224 shares changed ownership over three trades, to close the week at €0.595.
Harvest Technology plc moved 2.7 per cent higher to the €1.50 level on a volume of 8,916 shares with a value of €13,374. Last Thursday, the company announced that it will be distributing an interim net dividend of €364,490, equivalent to €0.016 per share to shareholders appearing on the company’s register of members as of November 10, 2021. Payment of the dividend shall be affected by not later than November 26, 2021.
The company added that the unaudited consolidated net profit before tax of the company and its subsidiaries as at end of September 2021 amounted to €3.1m. This marks an improvement of nine per cent over the consolidated net profit before tax of the Harvest Group for the same period in 2020.
Lifestar Holdings plc ended the week unchanged, although trading performance was highly volatile. Two trades with a mere value of €295 during Monday’s trading session saw the equity’s price plummet to the €0.10 price level. This drop was recovered during Wednesday’s trading session, as one transaction with a value of €614 pushed the price to €0.64.
The equity of Malta Properties Company plc was active during the week, as it climbed 1.8 per cent following three trades across 500 shares during Wednesday’s trading session. The equity did not trade for the rest of the week and closed at €0.57.
Although being active, the equities of Grand Harbour Marina plc, Malta Post plc and VBL group plc closed the week unchanged at €0.74, €1.24, and €0.29 respectively. Grand Harbour Marina plc was the most liquid out of the three equities, with a total turnover of €7,382.
Following last week’s negative performance, Malta International Airport plc shares recovered 0.8 per cent to regain the €6 level. During the week, six transactions worth €42,459 were recorded.
RS2 Software plc lost 0.6 per cent to end the week at €1.70 on 1,400 shares. The company’s preference shares suffered similar faith, as they trended 4.6 per cent lower to €1.67.
On the back of a substantial increase in its equity price last week, Simonds Farsons Cisk plc retracted back to the €8.35 price level, a week-on-week decline of 6.7 per cent. Trading activity included seven transactions with turnover tallying to €12,351.
Tigné Mall plc saw its shares decline by 5.9 per cent on one small trade involving 3,500 shares, to push the price lower to €0.80. Similarly, Trident Estates plc lost 7.7 per cent, as one trade on Monday and another yesterday with a total value of €6,950 ensured that the equity closed lower at €1.43.
MedservRegis plc announced that the additional shares issued to DOCOB Ltd for 47,893,229 ordinary shares of a nominal value of €0.10c and a share premium of €0.58c per share, have been admitted to the official list of the Malta Stock Exchange, following approval by the Malta Financial Services Authority for their admissibility to listing. No trading activity was recorded in MedservRegis plc shares.
In terms of IPO activity, applications are now open for the recently announced Hili Properties plc equity offer and the 3.65% International Hotel Investments plc Unsecured Bonds 2031.
The MSE MGS Total Return Index was the only positive performing index this week, as it gained 0.6 per cent to close at 1,098.329 points. The 2.1% MGS 2039 closed the week with an increase of 4.4 per cent at the price of €118.50, while on the downside the 5.1% MGS 2029 suffered the biggest decline, as it dropped by 0.8 per cent to end the week at €136.82.
The MSE Corporate Bonds Total Return Index ended the week 0.6 per cent lower at 1,145. 607 points. The 6% International Hotel Investments plc € 2024 registered the best performance, as it closed 4% higher at €105. Conversely, the 4% Stivala Group Finance plc Secured € 2027 closed 2.4 per cent lower at €101.
In the Prospects MTF market, activity was spread across four issues, as turnover amounted to €33,446. The 5% Busy Bee Finance plc Unsecured € 2029 was the most liquid, as weekly turnover reached €13,805 as a result of two transactions and closed the week at €101.51.
This article, 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 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, tel: 2122 4410, or email info@jesmondmizzi.com.