The MSE Equity Price Index eased by 0.17% to 3,465.568 points on Tuesday, reflecting the declines in four companies whilst another four shares closed the day unchanged. Most of today’s activity took place in the equity of HSBC Bank Malta plc which retracted by 1.4% back to its multi-year low of €0.70 across 126,750 shares having a market value of €0.09 million and representing 77% of the total value of equities traded.
Last week, HSBC announced further changes to its retail branch network in line with its strategy that places further emphasis on digital services. The bank also noted that its new flagship branch located in Qormi is now expected to be inaugurated in early 2021.
A single deal of 2,500 shares forced the equity of PG plc to retreat by 0.5% back to the €1.90 level.
Malta Properties Company plc and BMIT Technologies plc also trended negatively today with drops of 2% and 0.4% to €0.50 and €0.486 respectively albeit on trivial volumes.
All other four actively traded equities traded flat on low volumes. Bank of Valletta plc held on to the €0.87 level across 4,839 shares. Yesterday, BOV issued an Interim Directors’ Statement providing indications about the bank’s performance in Q3 2020.
In this respect, BOV explained that the COVID-19 situation continued to strongly influence its activities as although elements of improvement over Q2 were experienced, the prolongation of the situation is leading to overall lower business volumes and revenues. BOV added that at this stage, the bank did not see signs of significant businesses distress while retail customer resilience remains relatively strong.
As conditions can be expected to deteriorate, the bank is regularly reviewing credit loss provisions and developing strategies to support customers who start to experience material difficulties. As such, BOV is anticipating further management overlays into economic forecasts which will increase overall credit loss provisions for the duration of the COVID-19 event. On the other hand, however, a reinforced focus on recoveries of long-standing lending assets previously written off is leading to positive outcomes.
Apart from COVID-19, BOV noted that it is expecting some tailwinds during the second half of 2020 related to a recovery to the Income Statement from the settlement of the Swedish Pension Agency ‘Falcon Fund’. With respect to the other major contingent liability involving the Deiulemar Trust, although BOV expressed its commitment to resolving this case, it also noted that it is not in a position to report any further tangible progress at this point.
Meanwhile, the bank extended over €200 million to its clients under its COVID-19 Assist scheme supported by the Malta Development Bank. Demand for home loans also picked up lately after the slowdown earlier in the year. Corporate deposits decreased marginally in recent months but this was offset by growth from retail customers. BOV’s capital position remained very strong as it continues to prioritise the optimisation of regulatory capital whilst significant progress was registered in the risk management and compliance activities of the bank.
Also among the large companies, Malta International Airport plc retained the €4.72 level on just 1,045 shares. The airport operator is due to hold its AGM on 11 November and this will be streamed online.
Harvest Technology plc (5,000 shares) and Medserv plc (10,000 shares) closed the day unchanged at €1.45 and €0.50 respectively. The Board of Directors of Harvest Technology will be meeting tomorrow to consider the declaration of an interim dividend.
Tomorrow is the last day for shareholders of Plaza Centres plc to tender their shares to the company, if they so desire, at any price within a range of €0.90 to €1.00 per share as part of the company’s share buyback programme. Any offers accepted by the company (up to a maximum amount of 1 million shares) will be officially traded on the Borza on 10 November.
The RF MGS Index erased yesterday’s decline as it rebounded by 0.05% to 1,117.796 points. Sentiment across international financial markets improved markedly despite the significant uncertainties related to the outcome of the elections in the US.