All equities traded bar one lose ground

The MSE Equity Total Return Index extended its negative trend as it declined by a further 2.4 per cent, reaching 8,169.326 points. A total of 14 equities were active, of which one advanced while another 12 lost ground. A total weekly turnover of €771,213 was generated across 159 transactions.

Last Wednesday, Malta International Airport plc announced its financial performance for the first quarter of the year. Passenger traffic registered a decline of 16.1 per cent over the same quarter in 2019. Consequently, the group’s revenue during the first three months dropped by 17.5 per cent to €12.8 million, when compared to the same quarter of 2019. Following the implementation of cost-cutting measures, total operating expenditure also decreased from €8.3 million to €7.8 million in Q1 2020, representing a drop of 5.9 per cent. The Group’s capital expenditure for the first quarter of the year totalled €1.8 million.

Malta International Airport’s aviation and non-aviation activities remain very limited. Accordingly, its revenue generation remains significantly impaired, when compared to normalised operations. This is further compounded by the uncertainty of the duration of the current situation. The group reiterated that notwithstanding the adverse impact which the current COVID-19 situation has brought about, the directors have reason to believe that with the measures taken so far, and others planned to be taken should the need arise, the company is sufficiently resilient to be able to sustain the current conditions and that, during the current financial year, it has sufficient resources to meet all its financial obligations.

The equity registered a two per cent drop in price during the week as it reached the €4.80 price level. A total of 63,624 shares were spread across 59 transactions. Total turnover stood at €310,538 – being the most liquid for the week.

In the banking industry, Bank of Valletta plc closed the week at €1.04 – translating into a one per cent fall in price, having recovered from a weekly low of €1.025. A total of 44,334 shares changed ownership across 22 transactions.

Similarly, seven deals involving 5,327 HSBC Bank Malta plc shares dragged the price by 6.37 per cent lower. The bank closed the week at €0.955. On a year-to-date basis, this translates into a 26.5 per cent decline in price. Meanwhile, Lombard Bank Malta plc was active but closed unchanged at €2.10. Two deals involving 11,950 shares were executed.

Last Saturday, PG plc announced that it remains committed to ensuring the highest standards of care towards its employees and customers by operating strictly in line with the directives issued by the public authorities. The equity was active last Monday, as 13,080 shares changed hands over four deals. As a result, the price declined by 1.6 per cent to €1.85. From a year-to-date perspective, the company registered a positive 0.5 per cent movement in price.

Simonds Farsons Cisk plc ended the week in negative territory with a 0.6 per cent fall in price to €8.25. A total of 10 deals involving 3,617 shares were executed.

The only positive performer this week was Main Street Complex plc, as it traded twice over 16,000 shares. The equity closed 3 per cent higher at €0.464.

GO plc¸ lost 6.7 per cent as it closed at €3.60 over 19,754 shares which were exchanged across 12 transactions. Its subsidiary, BMIT Technologies plc, was down by 4.2 per cent as nine deals involving 70,150 shares were executed, closing the week at €0.46.

RS2 Software plc reached a six-week low price of €1.88 on Wednesday but managed to recoup some lost ground as it ended the week at €1.97. This translates into a 1.5 per cent decline, as a result of 94,737 shares spread across 19 transactions.

Last Tuesday, International Hotel Investments plc (IHI) issued a company announcement regarding to Ħal Ferħ, IHI, the holding company for the Corinthia Hotels Group, thereby the owner of the site formerly known as Ħal Ferħ in Golden Bay. The company holds title held by way of a perpetual emphyteusis acquired from Government in 2009, limiting development to a footprint of 20 per cent of the site’s overall area. The site enjoys a valid planning permit issued early in 2013 for a mass-market timeshare development comprising 216 self-catering apartments and a number of villa-style pavilions. The emphyteutical deed of 2009 cites tourism as a use for the site but included a mechanism for the conversion of part of the gross floor area to residential.

Aviation and non-aviation activities remain very limited

The company added that upon taking over the site in 2015 as part of the acquisition of the Island Hotels Group, it had declared its intention to re-design the development, while retaining the limitations on the overall footprint and volumes, as also a maximum height of two floors for half the buildings, and one floor for the rest. On this basis, IHI reported it intends to pursue an upmarket low-rise mixed development focused on a luxury hotel and spa complemented by serviced villas and bungalows. As per contractual mechanisms in the emphyteutical deed and planning permit, a series of processes has commenced, the first being a public consultation. When this process is complete, the normal planning application process will commence in parallel to a triggering of the emphyteutical deed’s mechanisms for the adoption of a mixed-use scheme, all of which are public processes.

Last Thursday, IHI issued the report prepared by MeDirect Bank (Malta) plc in terms of the Listing Authority policy on sinking funds for the year ended December 31, 2019. In December 2016, the International Hotel Investments plc sinking fund reserve was set up whereby Charts is the appointed custodian to hold and administer the sinking fund’s assets. Charts confirmed that as at the date of this report, the sinking fund amounts to €5,484,482.56, which is in accordance with the table of the sinking fund contributions included in the prospectus. Such proceeds have been properly applied in accordance with the investment parameters as described in the prospectus and the policies of the listing authority. The equity reached a five-week low price of €0.57, translating into a 3.4 per cent decline. Four deals involving 20,385 shares were executed.

Medserv plc headed the list of fallers with a 12.5 per cent drop in price, equivalent to a 36.4 per cent decline since end of year 2019. The equity was active on Thursday, as it traded three times over a mix of 6,800 shares, to close at €0.70.

In the property sector, two equities were active. Malita Investments plc registered a one per cent decline as it closed at €0.89. Three deals involving 15,500 shares were executed. Malta Properties Company plc traded 1.8 per cent lower at €0.54. A total of 12,180 shares changed hands over three deals.

Last Wednesday, Trident Estates plc announced the approval of the annual report and consolidated financial statements for the financial year ended January 31, 2020. These shall be submitted for shareholders’ approval during the forthcoming AGM, to be held when the situation permits. The board has resolved not to recommend the declaration of a dividend at the AGM.

The company report that revenue was up by €0.1 million as it amounted to €1.2 million. The group’s operating profit improved by 68 per cent as it amounted to €0.5 million, arising from higher revenue and lower costs. Profit before tax declined by 70 per cent to €0.3 million when compared to the previous financial year’s figure. No fair value gains on investment property were recorded during the year, versus the €0.8 million posted in the previous year. The equity did not record any trading activity during the week.

On May 8, after market close, MaltaPost plc announced that during these unprecedented times, the company has continued to keep the health and safety of all its employees at a top priority. Delivery of postal services has been uninterrupted, with only minor disruptions. However, other areas of operational activity have been significantly affected, not least by the sharp decline in flight connections to and from Malta. The company added this unplanned interruption is having a negative impact on some of the more important revenue streams. The board is scheduled to meet on May 29, 2020 to consider and approve the interim financial statements for the six months ended March 31, 2020. The equity did not trade during the week.

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.