The MSE Equity Total Return Index extended its gain by a further 1.3% as it reached 8,322.868 points. Out of 19 active equities, gainers and losers tallied to eight-a-piece. A total weekly turnover of €1.9 million was generated across 329 transactions.
On Monday, RS2 Software plc announced that the annual general meeting shall be held on July 30, 2020. The following day, the company announced that one of its subsidiaries has concluded a major processing outsourcing agreement with one of the largest acquirers in the US for a 10-year term with the option to renew. This is a milestone achievement, in line with the RS2’s expansion strategy of extending its operations in the US. Further details will be announced in due course.
The equity registered the best performance as it reached a 12-week high price of €2.30 – translating into an 18% increase. It was also the most liquid, as total turnover stood at €665,668. This was the result of 80 deals involving a total of 316,897 shares. Such positive performance translates into a 7.48% increase on a year-to-date basis.
On Monday, GO plc announced that Cablenet Communication Systems Limited, a Cypriot telecommunications provider operating in and from Cyprus and in which the company holds 60.26% of the issued share capital, is in advanced preparations in respect of a proposed public issue in Malta of 4% unsecured bonds with an aggregate principal amount of up to €40,000,000.
The equity declined by 1% as it closed at €3.60. A total of 32,365 shares changed hands over 26 deals.
On the other hand, its subsidiary, BMIT Technologies plc was up by 1.7%, as 26 deals involving 213,363 shares were executed. The equity ended the week at €0.486.
In the banking industry, all four banks were active. Lombard Bank Malta plc was the only positive performer having closed at €2.18 on Friday. Three deals involving 15,420 shares pushed the price 6% higher.
Bank of Valletta plc lost 2% as 224,972 shares were spread across 36 transactions. The equity reached €1.04 on Wednesday but did not manage to sustain the gain as it closed in the red at €1.00 on Friday.
Six deals involving 9,090 HSBC Bank Malta plc shares dragged the price by 1% into negative territory. The equity was trading flat all week but closed one cent lower on Friday at €0.98.
Similarly, FIMBank plc registered a negative 5% movement in price, as it closed at $0.38. Four deals involving 51,534 shares were executed.
Malta International Airport plc gave up its previous week’s gains as it closed 1% lower at €5.75. A total of 56,239 shares were spread over 79 deals. On Tuesday, the equity closed at a three-month high price of €5.95 – and also reached an intra-day high price of €6.00.
Retail conglomerate, PG plc, reached the €2.00 price level – the highest price in three months. Six deals involving 17,076 shares pushed the price 2.6% higher. On a year-to-date basis, the equity recorded positive 8.7% movement in price.
On a similar note, Simonds Farsons Cisk plc gained 2.5% as 12,491 shares changed ownership over 22 deals. The equity ended the week at €8.20.
On May 29, Medserv plc approved the audited consolidated financial statements for the financial year ended December 31, 2020. Total revenue for the year amounted to €68.73 million, as against a forecast of €64.22 million.
Last Saturday, Medserv also published its interim report for 2020. Revenue for the first quarter of year 2020 was 29.6% lower than that the previous year’s figure.
The current global downturn had minimal effect on earnings from the supply chain management of OCTG segment of the Company which is driven by onshore drilling activity in the Middle East. Demand for supply chain management services remain strong as National Oil Companies of this region did not suspend any onshore drilling and continue to confirm their commitment to approved projects.
The rest of the year is expected to be a challenging period for the Company, as it manages the economic impact of COVID-19. Its objective is to preserve its liquidity and ensure that it continues to register positive EBITDA during this period. Immediate cost containment measures have been put in place across the company.
MIDI plc closed the week on a negative note with a 7.3% fall in price
The equity declined by 4.3% as two deals involving 10,000 shares were executed.
In the property sector, four equities were active.
Malta Properties Company plc displayed strength as it closed 14.8% higher at €0.62. This was the outcome of 11 deals involving 105,319 shares.
Following suit, Tigne’ Mall plc was up by 2.6% as 94,650 shares changed hands over three deals. Likewise, two deals over slim volume pushed Santumas Shareholdings plc’s price 9.6% higher, to €1.49.
Meanwhile, MIDI plc closed the week on a negative note with a 7.3% fall in price, to close at €0.38. Eight deals involving 54,000 shares were executed.
International Hotel Investments plc ended the week flat at €0.585. The equity traded five times over a mix of 5,881 shares. Similarly, Plaza Centres plc was active but closed unchanged at €0.98. A total of 50,090 shares were spread across seven transactions.
Two deals involving 7,000 MaltaPost plc shares did not impact the equity’s previous closing price of €1.17.
A single deal of 341 Harvest Technology plc shares resulted into a 1.3% decline in the price. The equity ended the week at €1.47.
The MSE MGS Total Return Index advanced by a further 0.154% as it closed at 1,116.93 points. On Thursday, the European Central Bank announced a €600 billion expansion of its Pandemic Emergency Purchase Programme.
The increase was not expected to be as large, and resulted in the central bank’s total bond buying reaching €1.35 trillion.
Meanwhile, in the US, the Labour Department announced that the month of May saw a surprising €2.5 million gain in employment, translating into the largest gain on record. The unemployment rate decreased to 13.3%, which raises hope for the beginning of a recovery from the Covid-19 pandemic.
In the local sovereign market, out of 16 active issues, seven headed north while another eight closed in the opposite direction. The 5.25% MGS 2030 (I) headed the list of gainers with a 3.45% increase, to close at €150.00. On the other hand, the 2.4% MGS 2041 (I) lost 6.46%, ending the week at €123.00.
The MSE Corporate Bonds Total Return Index registered a 1.055% increase as it reached 1,071.04 points. A total of 41 issues were active, of which 20 registered gains while four lost ground. The 4% International Hotel Investments plc Unsecured € 2026 registered the best performance as it closed 9.02% higher, at par. Conversely, the 4.4% Von der Heyden Group Finance plc Unsecured € 2024 traded 1.75% lower, at €98.25.
In the Prospects MTF market, 13 issues were active. The 5% Busy Bee Finance Company plc Unsecured € 2029 was the most liquid as total turnover amounted to €15,075 over one deal of 15,000 shares.
This article 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, or on Tel: 21224410, or email info@jesmondmizzi.com