The MSE Equity Total Return Index closed the week a mere 0.22 per cent lower at 7,862.881 points, outperforming the Euro Stoxx 50 index which fell 2.4 per cent. Out of 20 active equities, six headed north while another seven traded lower, over a four-day trading week since Tuesday was a public holiday.
On Wednesday, Bank of Valletta plc announced the decision to keep the initial proposal for distribution of the dividend (a final net dividend of €0.017 per share) but make the actual payment conditional to the reassessment of the situation once the uncertainties caused by COVID-19 disappear, the earliest of which, in line with the European Central Bank’s recommendation, would be October 1, 2020.
The bank’s shares edged 1.16 per cent, as 197,952 shares changed hands over 61 transactions, closing at €0.85, over a total weekly turnover of €169,576.
Likewise, on Thursday HSBC Bank Malta plc announced the delay of the dividend distribution to ensure the banking system deploys capital in support of the macro-economy. The bank’s 2019 final dividend will be paid when it is appropriate to do so, but not before the fourth quarter of this year. The board will re-examine the situation and update the market accordingly. The bank has sufficient capital to support the previously announced dividend payment of 2019 – that of 2.1 cents per share (gross of tax).
Nine deals involving 31,506 shares pushed the bank’s price to a positive 3.26 per cent, reaching the €0.95 price level.
FIMBank plc traded once on Wednesday over 1,659 shares. As a result, the equity price rose to 4.44 per cent, ending the week at $0.47. On Monday, a sole deal of 2,440 Lombard Bank Malta plc shares pushed the price higher by five per cent to €2.10. The gain was offset later during the week, as 10,765 shares spread over four deals dragged the price lower, thus closing unchanged at €2.00.
The most liquid equity was Malta International Airport plc, as total turnover stood at €237,627. A total of 46,581 shares changed hands over 52 deals. On Monday, the equity declined to €4.96 despite reaching an intra-day high price of €5.50. The equity managed to recoup part of the loss, as it ended the week at €5.00, translating into a 3.85 per cent fall in price.
On Thursday, GO plc announced it shall postpone the AGM indefinitely. The board further announced that due to the current extraordinary circumstances, the recommended dividend payment of €0.14 per share (net of tax), shall be re-evaluated.
The equity was active on Monday, as three deals involving 10,060 shares were executed. The equity’s previous week’s closing price of €3.90 was not altered. Its subsidiary, BMIT Technologies plc performed well, as it registered a 2.51 per cent change in price, to close at €0.490 – 65,485 shares were spread over five transactions.
RS2 Software plc, traded five cents lower on Wednesday but managed to recoup the loss at the end of the week when it closed unchanged at €1.92. The equity registered high liquidity, as 22 deals involving 83,633 shares generated a total weekly turnover of €157,716.
International Hotel Investments plc registered a positive 4.39 per cent change in price, as it closed the week at €0.595. Six deals involving 31,800 shares were executed.
The pontoon and superyacht visitors’ sector is expected to be impacted significantly
On Thursday, Grand Harbour Marina plc announced that the pontoon and superyacht visitors’ sector is expected to be impacted significantly. The company has forecasted a worst-case scenario, that of no income from the sector previously mentioned for the next six months, including September 2020. In this case, the company would still have sufficient resources to meet all its payments obligations – including salaries and annual bond interest payment. The company would also be able to fully redeem its current €15 million bond, maturing in 2027.
No trading activity was recorded during the week.
Simonds Farsons Cisk plc shares registered an eight per cent downfall while trading twice on slim volume. The equity closed at €9.20 – the lowest price in 10 months. Retail conglomerate, PG plc, was up by 1.87 per cent as seven deals involving 11,850 shares were executed. The equity was trading at €1.70 until Wednesday but closed the week lower at €1.63.
In the property sector, four issues were active, of which two closed in opposite direction while the remaining closed unchanged. Trident Estates plc advanced by 3.88 per cent, as three deals involving 700 shares were executed. The equity reached the €1.34 price level by end of week.
On Thursday, the Malta Properties plc announced it will be postponing its AGM to a future date when the situation is stable. The board decided to proceed with the payment of the dividend, which will be paid on June 1, 2020 to all listed shareholders as at April 28, 2020. Shareholders’ confirmation of this decision will be given at the AGM. The equity closed two per cent in the red, as 88,370 shares changed hands across nine transactions.
MIDI plc and Malita Investments plc were both active but closed unchanged at €0.38 and €0.77 respectively. The former traded three times over a mix of 26,000 shares. The latter executed 11 deals involving 70,250 shares. A single deal of 3,000 Plaza Centres plc shares resulted into a 4.08 per cent decline in price and closed at €0.94. On a similar note, Harvest Technology plc traded once on slim volume, to end the week 2.67 per cent lower at €1.46. Main Street Complex plc lost ground, as it closed four per cent lower at €0.48. Two deals involving 3,987 shares were executed.
Three deals involving 10,029 Mapfre Middlesea plc shares did not impact the equity’s previous closing price of €2.26. Similarly, Medserv plc traded five times over 4,252 shares but closed unchanged at €1.00.
The MSE Corporate Bonds Total Return Index closed broadly flat at 1,043.90 points. In the corporate bonds market, out of 48 active issues, 16 registered gains while another 20 lost ground. The best performer was the 4% International Hotel Investments plc Secured € 2026 as it closed 3.62 per cent higher at €99.99. Conversely, the 5.25 per cent Central Business Centres plc Unsecured € 2025 S2T1 lost 3.38 per cent, ending the week at €100.00.
In the sovereign debt market, the MSE MGS Total Return Index ended the week 19 points lower at 1,113.03 points. Meanwhile, the European Commission announced that it will issue up to €100 billion in loans for its member states as a financial aid for companies to reduce redundancies during the COVID-19 pandemic. Furthermore, the European Commission approved a Maltese state aid scheme to support the economy, under the state aid temporary framework to support the economy in the context of the COVID-19 outbreak.
Executive vice-president Margrethe Vestager, in charge of competition policy, said the €350 million Maltese scheme would enable public guarantees on loans to help businesses cover immediate working capital needs and to continue their activities in these difficult times.
In the local sovereign market, 14 issues were active, six of which advanced while another five traded lower. The 2.3% MGS 2029 (II) headed the list of gainers, as it closed 1.11 per cent higher at €117.56. On the other hand, 4.45% MGS 2032 (II) lost 1.23 per cent, to close at €144.20.
In the Prospects MTF market, four issues were active as the 5% Borgo Lifestyle Finance plc Secured Callable 2026-2029 closed higher at €95.00 while the other three closed unchanged.
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 email info@jesmondmizzi.com