Last Wednesday the Accountant General launched another issue of the 62+ Malta Government Savings Bond for the elderly born during the year 1958 or before.

The amount in issue shall be €60m subject to an over-allotment option of an additional amount up to a maximum of €35m. The bond matures in 2025 and carries a fixed coupon of 3%. The interest is paid semi-annually on January 21 and July 21 of every year during the term of the bond.

In terms of local equities, the MSE Equity Total Return Index declined by 1.2% following a decline of 0.6% last week.

The local equities’ index closed at 8,169.676 points.

Turnover remained on the low side, as 99 trades worth nearly €0.3m were recorded, marginally up from €0.2m last week. Fifteen equities were active, of which only two gained and seven declined.

Bank of Valletta plc (BOV) was the most active equity, as 27 trades worth €111,000 were recorded, up from €93,000 last week. The equity started off the week on a positive note but failed to hold on to Monday’s gain, as it closed lower during another two sessions.

BOV shares ended the week down by 2% at €0.98, and is down by nearly 8% on a year-to-date.

HSBC Bank Malta plc managed to close flat at €0.96 after it traded at a weekly low of €0.925 on Tuesday. Six deals worth €15,000 were executed. On Monday, the bank announced that the board is scheduled to meet on August 3, 2020, to consider, and if deemed fit approve, the interim accounts for the half-year ending June 30, 2020.

In the same sector, Lombard Bank Malta plc shed 3% or €0.06 as one thin trade during yesterday’s session sent the equity’s price lower to €2.04.

Mapfre Middlesea plc shares finished the week flat at €2, as the share price of the insurance operator failed to hold on to the weekly high of €2.02 reached on Monday. Five deals worth nearly €14,000 were recorded.

Simonds Farsons Cisk plc traded unchanged at €8, as it was active during the first three sessions of the week. Six trades of 1,304 shares were executed.

The equity is down by 30% since the beginning of the year.

Retail operator PG plc was the best performing equity this week, as it gained 1% to close at €1.97. This was also the week’s opening price, which the equity retained throughout the remaining sessions.

PG plc shares have increased by 7% since January. On Thursday, the company announced that the board resolved to distribute a net interim dividend of €2,800,000 equivalent to €0.0259259 net per ordinary share. This will be paid on July 20, 2020 to the ordinary shareholders listed on the register as at July 14, 2020.

In the property sector, Trident Estates plc shed 2.6% or €0.04 to close at €1.50 on minimal trading. Meanwhile Malta Properties Company plc lost nearly 7% of its value, as all four deals were executed at €0.555.

In the technology sector, RS2 Software plc shares edged 0.8% to close at €2.38 after trading at a weekly high of €2.40 and a low of €2.34. The equity is among the best performing equities so far this year with an 11% gain.

BMIT plc closed flat at €0.48 after trading in tight ranges during four trading sessions.

The equity started off the week with a 2% gain which it failed to maintain thereafter, as the equity succumbed to selling pressure on Tuesday.

This week, BMIT plc shares were among the most traded, as eight trades worth €17,000 were recorded.

GO plc closed back in the red following a very positive run last week.

However, this week the equity declined by nearly 6% to end at €3.30 after trading at a weekly high of €3.44. Seven deals worth €8,000 were executed.

HSBC Bank Malta plc closed flat at €0.96 after it traded at a weekly low of €0.925

The company has just referred to a previous announcement in which it announced that the board of Cablenet Communication Systems Limited, with registered office in Cyprus, had authorised the submission of an application for authorisation for admissibility to listing requesting the approval of a prospectus in relation to a proposed public issue in Malta of 4% unsecured bonds with an aggregate principal amount of up to €40,000,000.

The company now announced the submission, by Cablenet, requesting the approval of a prospectus in relation to a proposed public issue of the bonds.

Reference is further made to another announcement, dated June 1, 2020, in which it was announced that should Cablenet proceed with the issuance of the bonds, a portion will be available for subscription by the company’s shareholders on a preferential basis.

The shareholders who will be given preference when participating in the bond issue are those appearing on the register as at close of business on July 17 which includes trades in the company up to July 15, 2020.

Malta International Airport plc (MIA) was the second most liquid equity along the week, as 16 trades of €73,400 were traded.

The equity closed the week at €5.75 after trading at a high of €5.80 mid-week and a low of €5.65 on Thursday.

On Thursday, the company announced the mid-year traffic report.

Traffic through the airport totalled 1,017,850 passenger movements, translating into a 68.7% drop when compared to the same period last year.

The year was off to a strong start, with the months of January and February registering double-digit growth of 14.2% and 17.3%, respectively.

However, a diminishing demand for air travel resulting from Covid-19 at the beginning of March followed by the coming into effect of a travel ban closer to the end of the month, ushered in a most challenging quarter for MIA.

During the second quarter, just over 8,700 passengers arrived or left the island on one of 311 humanitarian flights operated as commercial air traffic stood still. 3,348 passenger movements of this total were registered in June.

Since announcing its first 17 airport connections for the summer season back in June, Malta International Airport has regularly updated its flight schedule to reflect the most recent developments.

At present, this schedule offers direct flights to 49 airports in 13 European countries, with more connections expected to be added in the coming days as Malta International Airport continues to rebuild its route network.

In the hospitality sector, International Hotel Investments plc recorded no change in price, as two deals of 5,000 shares were traded at €0.58.

Meanwhile, MaltaPost plc gained nearly 1% to close at €1.19 while Medserv plc declined by a whopping 17.4% to finish the week at €0.57.

The MSE MGS Total Return Index lost 0.5% as it finished at 1,102.58 points. Out of 17 active issues, seven gained while another eight declined.

Turnover across the sovereign debt issues just surpassed the €1m mark, as the long-dated 3% MGS 2040 (I) was the most liquid issue. Meanwhile, the 2.4% MGS 2041 (I) posted a 400 basis point jump in price to €130.

The MSE Corporate Bonds Total Return Index closed the week 0.2% higher at 1,082.39.

A total of 40 issues were active, of which 13 registered gains while another 16 closed in the red. Over 150 transactions worth €1m were recorded.

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, phone 2122 4410, or email info@jesmondmizzi.com.

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