The MSE Equity Total Return Index did not manage to sustain the previous week’s gain, as it lost 1.3%, reaching 8,202.788 points. A total of 16 issues were active, four of which registered gains while another eight traded lower. Total activity stood at €0.5m, as 112 transactions were recorded.
Last Thursday, GO plc announced that the prospectus relating to the 3.5% unsecured bonds which mature in 2031 with an aggregate principal amount of up to €60 million was approved by the Listing Authority.
The proceeds from the bond issue are earmarked to repay the borrowings outstanding with the European Investment Bank for capital expenditure and a small balance will be used for general corporate funding purposes.
The offer opens on June 3 and closes on to June 18, 2021. Application forms will be mailed to GO plc shareholders this Monday and the offer will be available through authorised financial intermediaries who will accept applications from the company’s shareholders and the general public.
This week, the company also held its Annual General Meeting, during which the annual report and financial statements for the year ended December 31, 2020 comprising the financial statements and the directors’ and auditors’ reports thereon were approved. Moreover, the payment of a net dividend of €0.16 per share was also approved.
Eight deals involving 14,661 shares were executed, dragging the price by 2.9% into the red. The equity ended the week €0.10 lower at €3.40.
Its subsidiary, BMIT Technologies plc also held its Annual General Meeting. The annual report and financial statements for the year ended December 31, 2020 comprising the financial statements and the directors’ and auditors’ reports thereon were approved. Moreover, a net dividend of €0.02922 per share was also approved.
The equity declined by 2% to €0.49, as 109,900 shares were spread across 14 transactions.
Malta International Airport plc was the most liquid, as it registered a total turnover of circa €0.1m. This was the result of 18 deals involving 15,842 shares. The equity reached €6.45 during the week but closed flat at €6.40.
In the banking industry, Bank of Valletta plc was up by 1.1%, as 56,527 shares changed hands across 19 transactions. The equity ended the week €0.01 higher at €0.90.
Its peer, HSBC Bank Malta plc was active but closed unchanged at €0.84. Nine deals involving 51,124 shares were executed.
RS2 Software plc lost 2.5%, closing €0.05 lower at €1.99. Four deals involving 8,046 shares were executed. On the other hand, RS2 Software plc preference shares advanced by 0.5% to €1.86. A total of 29,276 shares changed ownership across seven transactions.
Moving on to the property sector, MIDI plc announced that the Annual General Meeting is scheduled to be held on June 17, 2021. The equity ended the week 2.8% lower at €0.35, as 49,700 shares changed hands over four deals.
Similarly, Malta Properties Company plc lost 2.7%, as 32,600 shares were spread across six transactions. The equity closed at €0.54. Malita Investments plc declined to €0.86 – equivalent to a 4.4% movement in price. Three deals involving 10,200 shares were executed.
Application forms for new bond issue will be mailed to GO plc shareholders this Monday
This week’s best performance in the sector was recorded by Trident Estates plc, as it closed 3.3% higher at €1.56. This was the result of 7,500 shares spread over three deals.
Last Thursday, Simonds Farsons Cisk plc approved the annual report and consolidated financial statements for the financial year ended January 31, 2021 and resolved to propose same for the approval of the shareholders at the forthcoming Annual General Meeting to be held on June 24, 2021.
The Group reported a total turnover of €73m compared to €103.5m for the previous year – a decrease of 29.4%. Similarly, profit before tax declined by 64% from €12.3m to €4.4m.
The Group’s net borrowings decreased by €15.6m, while the gearing ratio reduced to 16.8%, as compared to 25.9% for 2020. The board feels that it is not prudent to declare a final dividend to the Annual General Meeting.
Six deals involving 2,510 shares dragged the price to a five-week-low of €9.00. This translates into a 4.8% change in price. From a year-to-date perspective, the equity registered a 15.4% increase.
Five deals involving 40,000 MaltaPost plc shares did not impact the equity’s previous closing price of €1.24. Similarly, Plaza Centres plc traded once over 5,500 shares and closed unchanged at €0.90.
A sole deal of 58 Mapfre Middlesea plc shares translated into a 9.2% drop in price. The equity closed the week at €2.16. Harvest Technology plc traded 0.7% higher, as 12,900 shares changed hands across four transactions. The equity closed €0.01 higher at €1.55.
Last Monday, Grand Harbour Marina plc announced that the shareholders approved the audited financial statements for the financial year ended December 31, 2020 and the directors’ and auditors’ report thereon.
Similarly, MainStreet Complex plc held its Annual General Meeting. The audited financial statements for the financial year ended December 31, 2020 and the directors’ and auditors’ report thereon were approved.
Both equities were not active during the week.
Last Thursday, Medserv plc published its interim report. Revenue for the first quarter of year was lower than that registered last year. This is expected to be recovered in the second half of the year, as offshore drilling projects postponed in the year 2020 due to the pandemic are scheduled to resume in the Mediterranean basin later this year.
The Oil Country Tubular Goods segment is expected to register improved revenue. Reporting in the second half of the year will include the revenues and EBITDA of Regis Holdings Limited.
The equity was not active during the week.
The MSE MGS Total Return Index remained relatively flat at 1,118.93 points. A total of 19 issues were active, eight of which headed north while another five closed in the opposite direction. The 3% MGS 2040 (I) was the best performer, as it closed 0.8% higher at €135.00. On the other hand, the 2.4% MGS 2041 (I) ended the week 2.4% lower at €123.00.
The MSE Corporate Bonds Total Return Index managed to recover, as it closed 0.6% higher at 1,123.82 points. Out of 45 active issues, 15 advanced while another 19 lost ground. The 3.75% AXI 2029 S2 headed the list of gainers, as it closed 4.9% higher at €108.00. Conversely, the 5% Mediterranean Investments Holding plc Unsecured € 2022 lost 5%, to close at €95.00.
In the Prospects MTF market, five issues were active. The 5.5% Testa Finance plc € Bonds 2029 was the only positive performer, as it reached the €97.99 price level.
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.