The MSE Equity Total Return Index extended its loss by a further 8.4 per cent as the coronavirus continued to grip economies across the world. The index reached a 7,905.795 points, as 376 transactions were executed over 20 equities, 16 of which traded lower while the rest closed unchanged. A total weekly turnover of €2.2 million was generated, as the MSE Index was active over four trading session due to a public holiday on Thursday.

On Wednesday, Bank of Valletta plc reported a 25.3 per cent increase in profit before tax when compared the previous year’s figure. The bank’s interest on loans and advances increased to nearly €170 million, yet operating income declined by three per cent to €250 million as fee and commission income declined. The bank’s operating profit before litigation provision, declined from €138 million to €98.3 million. However, after taking in consideration the litigation provision for the financial year ended 2019 of €25 million, the bank’s profit before tax amounted to €89.2 million, up from €71.2m in 2018, during which the bank made a litigation provision of €75m.

The bank’s return on equity, after tax, increased to 6.2 per cent from 5.3 per cent the previous year. Earnings per share was up to 10.9 cents per share, resulting into a €63.5 million profit attributable to shareholders.

The bank’s IT security infrastructure was strengthened following the February 2019’s cyber attack. Most misappropriated funds were recovered. Operating expenses were up by 6.5 per cent to €139.1 million, as the bank continued to invest in IT and HR. In addition, €23.9 million were incurred for the transformation programme, expected to run over two years.

The ratio of non-performing exposures to total lending registered a positive result, down by 0.7 per cent from last year to 4.6 per cent. The bank also registered a strong Common Equity Tier 1 ratio, as it increased by 1.2 per cent to 19.5 per cent from the previous year.

The board is recommending the payment of a final gross dividend of €0.026 per share, translating to a final net dividend of €0.017 per share, to be approved during the AGM. This would amount to a total gross dividend of €15,384,615 for the year. The audited financial statements for the financial year ended December 31, 2019, are to be submitted for the approval of the shareholders at the forthcoming AGM, which has been postponed.

During the trading week, the bank’s equity lost ground by a substantial 9.8 per cent as it closed the week at the €0.92 price level. This was the result of 72 transactions involving a mix of 472,363 shares.

HSBC Bank Malta plc announced that due to the current COVID-19 situation, the AGM shall be postponed to a future date when circumstances allow. The bank decided to still proceed with the payment of a final net dividend of €0.014 per share to its shareholders. The bank reached €1.03 on Monday but did not manage to sustain the gain as it closed at €0.90 on Friday. As a result the equity finished the week down by 10 per cent over 22 deals involving 79,175 shares.

Five deals involving 13,199 Lombard Bank Malta plc shares dragged the price 1.87 per cent lower to €2.10. Meanwhile, FIMBank plc traded once on Monday over 30,867 transactions. The equity’s previous week’s closing price of $0.50 was unaltered.

On Wednesday, Malta International Airport plc announced the COVID-19 outbreak negatively impacted its passenger traffic in the first weeks of March. Seat capacity dropped by 14 per cent due to a number of cancellations and seat loads declined by 22.4 per cent. This resulted into a 38 per cent fall in traffic during the first 17 days of the month when compared to March 2019.

The company expects the situation to deteriorate further over the coming weeks. Original financial guidance for the year are therefore not expected to be delivered. The board agreed to postpone the AGM to July 29, 2020. An extraordinary board meeting has been called for April 22, 2020.

BOV plc reported a 25.3 per cent increase in profit before tax

The equity headed the list of fallers, as it lost 20.40 per cent but was also the most liquid equity, as total turnover stood at €672,649. A total of 146,563 shares changed hands across 111 transactions, dragging the price down to €4.02. Since the beginning of the year the share price of the airport operator is down by nearly 42 per cent.

Mapfre Middlesea plc shares reached €2.34 on Monday and declined to €2.28 until end of week, translating into a 1.72 per cent drop in price. A total of 38,896 shares were executed over 17 transactions.

Listed property companies were hit hard, as all six active equities closed in the red. Trident Estates plc was the worst performing property equity, as it shed 19.35 per cent or €0.30 to end the week at €1.25. Five deals involving 10,177 shares were executed. Following suit, Malta Properties Company plc closed at €0.50, as 37,400 shares changed hands over nine transactions. This translated into a fall of 16.67 per cent. Malita Investments plc traded 11.11 per cent lower as it ended the week at €0.80. This was the outcome of three deals involving 7,790 shares.

A sole deal of 1,000 Tigne’ Mall plc shares dragged the price 15.12 per cent lower, reaching the €0.73 price level. Plaza Centres plc closed flat at €0.98 as three trades of 4,005 shares were recorded. Four deals involving 45,000 Main Street Complex plc shares resulted into a 3.85 per cent weekly decline in price. The equity ended the week at €0.50.

On Wednesday, MIDI plc announced the board is scheduled to meet on April 25, 2020 to consider and approve the audited financial statements for the year ended December 31, 2019.

International Hotel Investments plc closed in the red, as 18,841 shares changed ownership over eight transactions. The equity closed 10.4 per cent lower at €0.56. GO plc, was active only on Tuesday, as it traded twice on slim volume. The price declined by 2.38 per cent to €4.10. Its subsidiary, BMIT Technologies plc declined by 3.77 per cent as 49 deals worth €357,170 were executed. The equity closed the short-trading week at €0.51. RS2 Software plc generated a total turnover of €396,551 as 198,132 shares changed hands over 55 deals. The equity lost a substantial 18.8 per cent in price.

MaltaPost plc lost ground as it closed 4.96 per cent lower at €1.15. Five deals involving 6,492 shares were executed. Retail conglomerate, PG plc, traded twice on Monday over 6,000 shares. The equity’s previous closing price was not impacted, as it traded flat at €1.90. Similarly, Simonds Farsons Cisk plc shares traded unchanged at €10.00 following one deal of 325 shares. Santumas Shareholdings plc traded once over 3,700 shares on Wednesday. The price was down by 9.33 per cent, closing the week at €1.36.

The Corporate Bond market was highly liquid this week, as 55 issues were active. The 4.25% GAP Group plc Secured € 2023 headed the list of gainers, as it closed 0.67 per cent higher at €104.00. On the other hand, the 3.75% Premier Capital plc Unsecured € 2026 traded 13.89 per cent lower at €90.00. Meanwhile, 3.8% Hili Finance Company plc Unsecured € 2029 registered the highest liquidity, as it generated a total turnover of €488,501.

In the Sovereign Debt market, 18 issues were active, of which 17 closed in the red while the 2.1 per cent MGS 2039 (I) closed 1.61 per cent higher at €126.50. The 3% MGS 2040 (I) closed 8.45 per cent lower at €132.00. Such negative performance is in line with the global bond market. In the Prospects MTF market, six issued were active. The 5% Busy Bee Finance Company plc Unsecured € 2029 was the most liquid, generating a total turnover of €18,053. The bond closed the week at €102.50.

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 info@jesmondmizzi.com.