TThe MSE Equity Total Return Index (MSE) closed the week in the green, with a 1.3% increase to finish at 8,025.668 points. Strong gains by HSBC Bank Malta plc (HSBC), GO plc and Malta International Airport plc (MIA) pushed the equity index higher. Total weekly turnover dropped to €0.3m.
Nineteen equities were active, 11 of which gained, five declined, while three remained unchanged.
Following positive results published by HSBC on Monday, the bank’s equity trended higher to end the week at the €0.83 price level, a week-on-week increase of 5.1%. Trading value reached €17,967.
Last Monday, HSBC approved the group’s and the bank’s interim condensed financial statements for the six-month period ended June 30, 2021.
Profit before tax increased by €15.6m to €17.5m due to positive performance reported by the life insurance subsidiary and lower expected credit losses booked in relation to the bank’s lending portfolio.
Favourable market movements impacting the life insurance subsidiary increased the bank’s revenue by 16%.
Expected credit losses decreased by €6.8m to €1.9m, whilst customer deposits increased by €57m and the lending function of the bank decreased marginally by €8.9m. The company also announced that no interim dividend will be distributed.
Looking at some important financial ratios, profit attributable to shareholders of €11.4m for the first six months resulted in a substantial increase in earnings per share of €0.032, compared with €0.003 in the same period in 2020.
Return on equity increased to 4.7% for the six months ended June 30, 2021 compared with 0.5% for the same period in 2020.
In the banking sector, Bank of Valletta plc (BOV) shares eased by 0.6%. The bank’s equity recorded 11 transactions of 39,592 shares, with a trading value of €35,470. BOV shares finished the week at €0.895 and is currently trading 5.8% lower on a year-to-date basis.
Lombard Bank Malta plc saw its shares decline by 1.1% during Monday’s trading session, and although the equity was active during yesterday’s session, it did not manage to recover this loss. The bank’s shares closed at the €1.84 price level.
Malta International Airport plc (MIA) gained 1.6% during the week, as 3,179 shares changed hands over three trades. MIA shares are also up 1.6% year-to-date.
The equity of Simonds Farsons Cisk plc ended the week 0.6% higher. This increase resulted from 12 trades across 4,373 shares. The company’s shares closed the week at the €8.30 price level.
GO plc advanced by 1.8% to close at a weekly high of €3.46. This increase resulted due to five trades involving 6,078 shares. The telecommunications company’s price dropped on Monday, but increases on Tuesday and Wednesday saw the equity’s performance turn positive for the week.
In the IT sector, BMIT Technologies plc advanced by 1.2%, to close at €0.496 across three trades on 7,142 shares.
Nineteen equities were active, 11 of which gained
Harvest Technology plc dropped 0.6% to pull back some of last week’s gains and closed at the €1.58 price level.
On a year-to-date basis, the equity is up by 6.8%.
Last Tuesday, Harvest Technology plc approved the company’s interim financial statements for the six-month period ended June 30, 2021.
The company recorded an operating profit of €1.9m, with revenue standing at €7.9m. Furthermore, profit after tax stood at €1.2m, an increase of 3.9% on last year’s half-yearly figures.
The board announced that a net interim dividend of €0.024 per share will be paid to all shareholders appearing on the company’s register of members as at close of business on August 16, 2021.
RS2 Software plc (RS2) bounced back after last week’s dip.
The company saw its shares increase by 2.3% to close the week at €1.76. The equity is down 12% on a year-to-date basis.
RS2 announced that its board is scheduled to meet on August 17, 2021 to consider, and if thought fit, approve the group’s and the company’s condensed interim financial statements for the six-month period ended June 30, 2021.
PG plc ended the week in the green, as the equity gained 1.9%. The retail conglomerate’s shares regained some of the loss experienced during last week’s trading sessions.
Tigné Mall plc shares gained 24% on low volumes during Friday’s session. Two transactions with a trading value of €3,750 were recorded.
Last Thursday, the board approved the unaudited condensed interim financial statements of the company for the first six months of the year.
Despite a tough time due to Covid-19 restrictions imposed between March and April, the shopping mall still managed to register a profit after tax of €757,858.
Over the first six months, revenue and earnings per share increased to €2.6m and €0.013 respectively. The directors also declared an interim net dividend payment of €378,929 equivalent to €0.0067 per share.
The interim dividend will be paid on September 3, 2021 to shareholders on the Company’s register at close of business on August 20, 2021.
Similarly, Plaza Centres plc advanced further, as the shopping mall’s equity saw one trade increase its price by 4.7%. The share price closed at €0.89.
Loqus Holdings plc was this week’s best performing equity, after seven trades involving 45,000 shares with a value of €3,767 were recorded during Wednesday’s trading session.
International Hotel Investments plc (IHI) closed flat at €0.65, after trading at a weekly low of €0.58. IHI shares are down by 10% year-to-date.
Mapfre Middlesea plc closed unchanged at the €2.12 price level. Three trades with a value of €9,863 were recorded.
MIDI plc was amongst the best performing equities, after recording a week-on-week increase of 11.1%.
Monday’s trading session saw its shares drop by 4.4%, but a quick rebound on Tuesday ensured that the shares end the week in the green. Malita Investments plc recorded a decline of 1.8% on thin volume, to end the week at the €0.805 price level.
Malta Properties Company plc (MPC) traded flat at €0.525, as two trades with a value of €822 were executed.
Yesterday, MPC approved the group’s interim unaudited financial statements for the six-month period ended June 30.
The company registered an operating profit of €1.3m and a profit after tax of €2.3m.
Trident Estates plc was this week’s worst performer, as a drop of 12.5% saw the company’s equity trade at a one-year low of €1.40. Two trades involving 2,416 shares were recorded.
The MSE MGS Total Return Index declined by 0.1%, to end the week at 1,116.226 points.
The 2.3% MGS 2029 was the best performer, as it gained 2.9%, while the 2.1% MGS 2039 suffered the biggest decline, as it dropped by 4.9%.
The MSE Corporate Bonds Total Return Index ended the week 0.1% higher. The 4.35% Hudson Malta plc Unsecured € Bonds 2026 gained 2.5%.
On the other hand, the 6% AX Investments plc € 2024 suffered the biggest drop, as it declined by 1.6%.
In the Prospects MTF market, activity was spread across six issues, as turnover amounted to €132,390. The 5% JD Capital plc € Unsecured Bonds 2028 was the most liquid, as weekly turnover reached over €52,000.
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.