Last Updated on Friday, 12 November, 2021 at 12:44 pm by Andre Camilleri
The MSE Equity Total Return Index continued to trend lower during October, as it closed 0.76% lower at 7,972.952 points. A total of four issues headed north while another 19 closed in the opposite direction. Simonds Farsons Cisk plc shares headed the list of gainers with an increase of 5.29%, whilst Loqus Holdings plc closed the month as the worst performing equity, suffering a loss in value of 34.69%. Total monthly turnover amounted to € 1.7m, generated across 336 transactions.
In the banking industry, following weak performance in the share price of Bank of Valletta plc during September, a month-on-month drop of 0.6% for October was recorded. The decline was a result of 555,353 shares being traded with a value of nearly €488,100. The bank’s equity ended the month at the €0.865 price level.
HSBC Bank Malta plc (HSBC) saw its share price tumble by 3.6%, as trading activity included 26 transactions across 59,957 shares. HSBC’s equity closed at €0.80. This price level represents a year-to-date decline of 11.1%.
On the contrary, Lombard Bank Malta plc trended 2.1% higher during the month, as eight trades with a value of €33,447 pushed the equity price to €1.98. Although the bank’s share price has been on the rise for the past two months, the equity is down 16.1% since January.
Looking at the local telecommunications industry, GO plc shed 0.6% on the value of its equity, to end October at €3.30. Liquidity was fairly high during the month, as 59,902 shares were traded over 37 transactions.
It’s subsidiary BMIT Technologies plc eased by 2% to the €0.484 price level, as 125,872 exchanged hands over 15 trades.
Loqus Holdings plc (€0.064) and Santumas Shareholdings plc (€1) were the two worst performing equities, with the former losing 34.7% of its value, whilst the latter declining by 9.1%. Out of the two equities, Santumas Shareholdings plc shares were more liquid, as they were involved in two transactions with a total turnover of €11,461.
Similarly, Harvest Technology plc plunged by 5.8% to €1.46, a level which was last seen at the beginning of May 2021. Trading activity was spread over two trades across 13,342 shares, as trading value tallied up to €19,879.
The hotel operating company International Hotel Investments plc (IHI) experienced a 1.6% drop in value to close at €0.60. This decline was the result of 12 trades with a total turnover value of €24,717.
During the last week of October, IHI announced that it had received regulatory approval for the issuance of an €80m unsecured bond issue with an annual coupon of 3.65% and maturing in 2031. The bond will be issued at par and opened on November 8, 2021 and will close on November 30, 2021 with the option of early closure on November 26, 2021.
The share price of Simonds Farsons Cisk plc was the best performing equity during October, as it jumped by 5.3% to the €8.95 level. The company’s equity experienced higher liquidity during the month, as 12 deals spread over 12,950 shares were recorded. Equity price fluctuated between a monthly-low of €8.15 and a monthly high of €10. Compared to the equity’s value at the beginning of the year, the share price is up by 14.7%.
RS2 Software plc declined by 0.6%, as 18 trades on a volume of 59,115 shares were recorded. Compared to previous months, liquidity was fairly high, as turnover slightly exceeded €101,800 to close October at €1.71. The company’s preference shares moved in the opposite direction, as they gained 2.9%. Liquidity was much lower in this share class; as total trading value was €6,218 as a result of five trades.
The equity price of Malta International Airport plc (MIA) closed unchanged at the €5.95 price level. MIA shares were amongst the most liquid on the Exchange during the month, as they were involved in 38 trades across 31,708 shares with a value of €192,229.
During the month, MIA published the September traffic results. The report indicated that MIA recorded its strongest month in terms of passenger volumes since the outbreak of the coronavirus pandemic, welcoming a total of 418,473 passengers in September. When compared to pre-pandemic levels, airport traffic is still significantly low (45.1% less than September 2019). The United Kingdom retained its spot as Malta International Airport’s top driver of passenger traffic, followed by Italy, Germany, France and Spain. MIA also published its winter schedule, featuring new flight connections, adding services to unserved markets including Croatia, North Macedonia and the United Arab Emirates, as well as a number of route extensions from summer into winter.
The retail conglomerate PG plc shed 2.4% to close at €2.44 on 22 trades of 76,195 shares. Although experiencing a drop during the month, the company’s share price is up 22% on a year-to-date basis.
The company held its fifth annual general meeting where all resolutions on the agenda were approved.
Grand Harbour Marina plc and MIDI plc also performed negatively, as the former plummeted by 7.5% to €0.74 as it was involved in a sole trade with a mere value of €80. MIDI plc was involved in one small trade on a volume of 5,000 shares to end the month at €0.40.
Similarly, Malta Properties Company plc closed the month at €0.56, a month-on-month drop of 1.8% across 126,568 shares spread over 15 trades.
The newly issued shares of VBL plc saw their value jump in the first month of trading, as the price moved higher to capture the €0.29 level, an increase equivalent to 3.6% from its issued price. The company’s equity traded twice on a volume of 13,500 shares.
Mapfre Middlesea plc eased by 1.9% to €2.12, on eight deals worth €31,271.
The equity of Plaza Centres plc ended the month 0.5% lower after one trade involving 15,000 shares pushed the price lower to €0.995.
MedservRegis plc shares trended 0.7% lower to the €0.69 price level, as a sole trade with a total value of €1,311 was recorded.
The national postal service provider MaltaPost plc suffered a price drop of 3.1% to close at €1.24. This drop was the result of 10 trades, as 28,604 shares exchanged ownership during October.
Both Malita Investments plc (€0.82) and Trident Estates plc (€1.55) suffered similar faith, as both equities ended the month in the red. The two equities were fairly liquid, as Malita Investments plc traded 12 times on a volume of 53,828 shares, while Trident Estates plc traded 10 times across 25,439 shares. Total turnover for both shares was €44,889 and €39,530 respectively.
In terms of IPO activity, Hili Properties plc announced that the MFSA approved the prospectus relating to the IPO and the admissibility to listing of the shares. This issue opens on November 4, 2021 and closes on November 26, 2021, with the option of early closure at the discretion of the company.
The MSE Corporate Bonds Total Return Index closed the month relatively flat with a minimal increase of 0.001% at 1152.430 points. The best performing corporate bond for October was the 4% Merkanti Holding plc Secured € 2026 with an increase of 2.3% at €102.50. Conversely, the 4.65% Smartcare Finance plc Secured Bonds 2031 closed 2.5% lower at €103.20.
The MSE Malta Government Stocks Total Return Index registered a loss of 0.002%, as it closed the month at 1092.235 points. The 4.8% MGS 2028 (I) was the best performing government bond as it closed at €135, an increase of 2.3%. On the other hand, the 2.2% MGS 2035 (I) was the worst performing bond, losing 6.8% to close at €113.92.
In the Prospects MTF market, 11 issues were active. The 5.75% Pharmacare Finance plc Unsecured EUR Bonds 2025-2028 registered the best performance as it increased by 2.9%. Monthly turnover in the Prospects MTF market tallied to €236,056.
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, or on Tel: 2122 4410, or email info@jesmondmizzi.com
