The local equities market managed to recoup part of the previous week’s loss as it closed at 9,524.417 points. A total of 19 equities were active, of which nine traded higher while another five closed in the red.
A total turnover of €1.8 million was generated across 185 deals.
In the banking industry, Bank of Valletta plc traded between a weekly low of €1.06 and a high of €1.12 but ended the week at €1.09. This translated into a 2.35 per cent increase, as 162,005 shares changed ownership over 42 transactions.
HSBC Bank Malta plc registered a further 3.45 per cent decline, as it closed at €1.12. This was the outcome of 13 deals with a spread of 39,865 shares. Last Friday, the bank announced that on January 15, 2020, it entered into a promise of sale agreement with Malta Properties Company plc (MPC), to sell a building complex in Swatar.
Such sale’s purpose is the disposal of a non-core property asset, which is not part of the bank’s normal business.
Last Thursday, FIMBank plc was active over three deals involving 5,000 shares. As a result, the price was up by 5 per cent, closing the week at €0.63.
Lombard Bank plc traded once on slim volume on Thursday, but closed unchanged at €2.18.
On Wednesday, Malta International Airport plc announced that the board shall meet on February 26 to consider and approve its financial statements for the year ended December 31, 2019.
The board shall also consider the payment of a dividend to its shareholders. The equity was active over 17 deals involving 20,557 shares, resulting into a 1.47 per cent gain, to close at €6.90.
In the property sector, five equities were active, of which one headed north while the rest closed unchanged.
As mentioned earlier, MPC has announced it had entered into a promise of sale agreement with HSBC Bank Malta plc, for the acquisition of the building complex in Swatar, including the parking area adjacent to this building complex as well as the overlying airspace and sub-terrain of the property as freehold.
The property is being sold subject to a lease agreement in place in favour of HSBC Global Services (UK) Limited.
Moreover, HSBC shall guarantee in favour of MPC that the property is free from any burdens or any other rights in favour of any third party given that MPC shall have the right to not appear on the deed without any liability.
MPC shall be entitled to an immediate refund of the deposit should it appear that the property acquired is burdened.
In addition, HSBC Global Services (UK) Limited has undertaken to carry out refurbishment works to the property for an amount of not less than €1 million.
The property’s sale and acquisition is €8.05 million, of which €0.805 million are payable as per price terms and conditions set out in the agreement, and the remaining €7.245 million shall be paid by the purchaser on the deed on account of the price.
HSBC and MPC have also agreed that the deposit is a payment made on account of the price and not the earnest. Should MPC terminate agreement with a reason valid at law, MPC shall have the right to the immediate refund of the deposit.
This agreement will remain valid and effective for five months from the agreement date, provided that an automatic three-month extension for the agreement will be given should the AIP permit application process still be ongoing. Once the deed reaches publication, the property will form part of MPC’s property portfolio.
The equity did not register any movements in price as it closed at €0.65. During the week, a total of 107,810 shares were spread over 10 deals.
Malita Investments plc was up by 4.44 per cent, as five deals involving 46,000 shares were executed. The equity ended the week at €0.94. Six deals involving 20,500 MIDI plc shares did not impact the equity’s previous week’s closing price of €0.50. Similarly, Tigne’ Mall plc traded twice last Wednesday over a spread of 20,000 shares. The equity ended the week unchanged at €0.90.
HSBC to sell building complex in Swatar
Trident Estates plc was also active as 2,087 shares changed ownership over three deals. The equity’s previous closing price was left unaltered at €1.55.
Last Friday, IT services provider, BMIT Technologies plc, announced that the final deed of sale and purchase of the property, in Tal-Ħandaq, which houses the group’s largest data centre, was executed on January 17.
A substantial part of the company’s operations can now be carried on from its own property. This shall minimise the risks involved with migration to another facility since there is no need for relocation of any customers allocated to the data centre operating from the property.
This implies less expenses with respect to rental of premises.
The equity closed the week in positive territory with a 2.94 per cent increase to €0.525. Seven deals involving 92,000 shares were executed.
On the other hand, its parent company, GO plc, closed in the red with a 1.42 per cent decline to €4.16. During the week, the equity traded lower at €4.12 but managed to recoup part of the loss last Friday. This was the result of 10 deals involving 12,446 shares.
RS2 Software plc registered its first negative weekly change in price for the year despite being the most liquid equity, as total turnover stood over €1.1 million.
A total of 477,679 shares changed hands over 41 transactions, dragging the price 2.56 per cent lower to €2.28.
Last Thursday, Mapfre Middlesea plc announced that the board shall meet on March 12 to consider, and if deemed fit, approve its audited financial statements for the year ended December 31, 2019. The board shall also consider the declaration of dividend to be recommended to the Annual General Meeting of Shareholders.
The equity traded once last Monday but closed unchanged at €2.34. However, last Thursday, a sole deal of 72 shares pushed its price into the red, to close 5.98 per cent lower at €2.20.
Similarly, Simonds Farsons Cisk plc ended the week on a negative note. Seven deals involving 984 shares dragged the price 3.51% downwards to €11.00.
PG plc was active over four deals involving 29,291 shares. This resulted into a 2.78 per cent increase to end the week at €1.85.
The best performance of a 7.14 per cdent increase was registered by GlobalCapital plc as it closed at €0.30. Last Tuesday five deals involving 19,704 shares were executed.
Last Friday, a sole deal of 2,000 International Hotel Investments plc shares pushed the price 4.49 per cent higher to €0.815. Similarly, MaltaPost plc registered a 3.05 per cent increase, as it closed at €1.35. A total of 5,478 shares changed ownership across six transactions.
The MSE Corporate Bonds Total Return Index declined by a further 0.036 per cent as it closed at 1,080.24 points. A total of 53 issues were active of which 28 headed north, while another 12 closed in the opposite direction.
The 3.75% Bank of Valletta plc Unsecured Sub € 2026-2031 headed the list of gainers as it closed 2.23 per cent higher at €103. On the other hand, the 4.5% Hili Properties plc Unsecured € 2025 declined by 2.38 per cent, to close at €102.60.
On the Sovereign debt front, the MSE MGS Total Return Index drifted 0.289 per cent lower to 1,112.08 points. Out of 20 active issues, only three registered a gain while another 16 lost ground. The 2.4% MGS 2041 (I) closed 0.12 per cent higher at €128. Conversely, the 3% MGS 2040 (I) lost 3.15 per cent, as it ended the week at €138.50.
In the Prospects MTF market, four issues were active. The 5% The Convenience Shop Holding plc Unsecured Call € 2026-2029 registered the highest liquidity, as total turnover amounted to €59,373.
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 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.