Last Updated on Thursday, 6 October, 2022 at 1:59 pm by Andre Camilleri
Monthly Round up Report for September 2022
The MSE Equity Total Return Index headed north, as it closed 0.5% higher at 7,688.267 points. A total of 12 equities gained while another eight closed in the opposite direction. Among the large caps, Bank of Valletta plc (BOV) posted a gain of nearly 5% whilst Hili Properties plc closed the month as the worst performing equity, suffering a loss of 7.5%. Total monthly turnover amounted to €2.2m, generated across 354 transactions.
In the banking industry, BOV gained 4.7%, as the equity closed the month at €0.90. During September the equity traded between a high of €0.925 and a low of €0.85. A total of 487,144 shares exchanged ownership over 81 transactions.
During the month, the bank announced that since the contract of the CEO, Mr Rick Hunkin, is due to expire later on this year, the bank’s directors have appointed Mr Kenneth Farrugia as the bank’s next CEO who will also sit on the bank’s board as an Executive Director, subject to regulatory approval.
In addition, the board of BOV announced that it has been granted approval by the Central Bank of Ireland, in respect of a base prospectus for the purposes of the EU Prospectus Regulation. The base prospectus relates to the establishment of a euro medium term note programme providing for the issuance of notes up to a maximum aggregate principal amount of €500m. The base prospectus is valid for 12 months from its date of issue.
The net proceeds from each issue of notes will be used to further strengthen the minimum requirement for own funds and eligible liabilities and/or capital base of the bank and its subsidiaries. Application will be made for notes issued under the programme to be admitted to the official list and to trading on the regulated market of the Irish Stock Exchange plc.
Mapfre Middlesea plc trended 11.3% higher during the month, as 13 trades with a value of €19,007 pushed the equity’s price to €1.67.
On the other hand, the other active equities in the same sector ended the month unchanged. APS Bank Malta plc ended the month at €0.64 after trading at a monthly low of €0.63 and a high of €0.65. A total of 36 deals worth €0.2m were executed. APS announced that an extraordinary general meeting will be convened to approve an interim net dividend via a capitalisation of profits through the issue of new, fully paid up, ordinary shares at nominal value. The meeting will be held remotely on October 19, 2022.
HSBC Bank Malta plc traded at a monthly high of €0.79 but ultimately closed unchanged at €0.75. This was the outcome of 20 deals of 239,985 shares.
Lombard Bank Malta plc (LOM) and Lifestar Insurance plc (LSI) finished the month unchanged at €1.95 and €0.45
The board of LifeStar Insurance plc approved the unaudited half-yearly financial report for the six-month period ended June 30, 2022. The group incurred a loss after tax of €4.5m, compared to the prior loss after taxation of €2.1m.
The Malta International Airport plc (MIA) closed 0.9% higher at the €5.95 price level. MIA shares were amongst the most liquid during the month, as 45 trades of 65,308 shares with a value of €389,551 were executed.
In the tourism sector, International Hotel Investments (IHI) saw its share price decline by 2.1%, as trading activity included 14 transactions of 66,578 shares. IHI closed at €0.705. This price level represents a year-to-date increase of 13.7%.
The board of IHI approved the half yearly report for the period ended June 30, 2022. The group registered total revenues of €95.8m and posted an EBITDA of €17.3m in the first six months of 2022. This compares to a revenue of €34.6m and an EBITDA of a negative €0.8m in the corresponding period last year.
IHI reported a profit after tax of €0.8m compared to a loss of €26.4m in the same period last year.
Revenues in the first half of 2022 are now at 73% of pre-pandemic levels registered in the same period for 2019. The company’s focus on cost controls has remained in place, resulting in an EBITDA conversion at 18%. Compared to 2021, net depreciation charges decreased by €1.6m on account of fully depreciated assets and interest income and expense are broadly in line with last year.
The share price of GO plc shed 3.3%, to end September at €2.94. Liquidity was fairly high during the month, as 70,024 shares were traded over 32 transactions, generating a turnover of €211,960.
It’s subsidiary, BMIT Technologies plc was the only equity in the IT services sector to end the month in the red. The share price eased by 2.9% to the €0.466 price level, as 111,155 exchanged hands over 12 trades.
Loqus Holdings plc registered the best performance during the month. A single transaction worth €1,900 pushed the share price higher by 27% to finish the month at €0.19.
Meanwhile, RS2 Software plc Ordinary shares climbed by 0.7%, ending the month at €1.38. A total of 14 transactions worth €158,464 were recorded. The company’s Preference shares closed unchanged at €1.48.
Similarly, Harvest Technology plc advanced by 3.2% to €1.30. Trading activity was spread over a single trade of trivial volume.
Hili Properties plc (HLI) and Plaza Centres plc (PZC) were the two worst performing equities, with HLI losing 7.5% of its value at €0.222. PZC declined by 6.3%, finishing the week at €0.75.
Malta Properties Company plc (MPC) suffered a price drop of 3.7% to close at €0.52. This drop was the result of six trades, as 15,210 shares exchanged ownership during September.
By virtue of an agreement dated September 28, 2021, BKE Property Company Limited entered into a promise of sale agreement with Excel Investments Limited. MPC announced that on September 27, 2022, BKE executed the final deed of sale in respect of the property through which BKE sold and transferred to Excel Investments Limited who accepted and purchased the property. The consideration for the sale and acquisition of the property is €8m which €0.8m was paid upon the execution of the promise of sale agreement and the balance of €7.2m has been paid in full and final settlement of the consideration upon the final deed of sale through bank financing.
AX Real Estate plc ended the month flat at €0.55, as 55,000 shares were executed across four deals.
Trident Estates plc (TRI) and VBL plc closed in positive territory. Trident was involved in one small trade on a volume of 728 shares to end the month 1.5% higher at €1.40. VBL appreciated 1.9% to €0.216.
The board of directors of TRI approved the unaudited financial statements of the company for the six months ended July 31, 2022. The group recorded revenue of €885,000 during the first six months, resulting in an increase of 62% compared to the same period last year. The group recorded a net profit of €151,000 as compared to a net loss of €28,000 in the same prior period. The Board did not propose the payment of an interim dividend. The extent of a final dividend distribution, shall be determined on the basis of the full year results.
Similarly, two transactions involving 36,000 MIDI plc shares pushed the share price 13.3% to €0.34.
The board of the MIDI approved the company’s unaudited interim financial statements for the six months ended June 30, 2022. During the first half of 2022, MIDI posted a loss after tax of €0.5m.
The share price of Simonds Farsons Cisk plc (SFC) jumped by 2.6% to the €7.95 level. The company’s equity experienced higher liquidity during the month, as 25 deals of 24,849 shares were recorded. The equity’s price fluctuated between a monthly-low of €7.60 and a monthly high of €7.95. Compared to the equity’s value at the beginning of the year, the share price is down by 17.6%.
The board of directors of SFC approved the group’s unaudited financial statements and Interim Directors’ Report for the six months ended July 31, 2022.
The group registered an increase of €15.7m in turnover when compared to the same period last year. The total turnover for the first six months of the current financial year amounted to €57.3m. Profit after taxation for the period amounted to €7m compared with €4.9m for the equivalent period last year.
The board of SFC also resolved to distribute, out of tax-exempt profits, an interim dividend of €1.6m equivalent to €0.045 per ordinary share. This dividend will be paid on October 19, 2022.
In the retail sector, the share price of M&Z plc (MZ) eased by 2.7%. This was the outcome of five deals involving 16,887 shares. The board of MZ approved the company’s unaudited interim financial statements for the six months ended June 30, 2022. The company reported a 26% increase in core revenue for the first six months of the year, when compared to the same period in 2021. Revenue for the period was €13.4m, up from €10.6m during the same period in 2021. EBIDTA increased from €1.6m during the first half of 2021, to €1.9m during the first half of 2022. The directors approved the payment of a net interim dividend of €396,000, 0.009c per ordinary share
Ten transactions of 45,246 PG plc shares worth €99,816 eased the share price by 4.6%. The equity ended the month at €2.10.
Main Street Complex plc shares trended 15% higher to the €0.46 price level, as a sole trade with a total value of just €103 was recorded.
The share price of MaltaPost plc gained 0.9% to close at €1.11. This increase was the result of two trades, as 1,631 shares exchanged ownership during September.
Grand Harbour Marina plc (GHM) kept the previous week’s closing price of €0.70. Two deals involving 7,142 shares were executed.
The board of GHM approved the half-yearly report of the company for the financial period ended June 30, 2022. Total revenue contracted from €1.9m to €1.7m for the same period last year due to lower utility consumption by superyachts. The company registered EBITDA of €0.8m, lower by €0.1m when compared to the same period last year. With net finance costs of €0.4m and depreciation of €0.2m, the company achieved a €0.2m profit before tax.
The MSE Corporate Bonds Total Return Index closed the month slightly lower by 0.1% at 1,155.783 points. The most liquid corporate bond for September was the 4.65% Smartcare Finance plc Secured € 2032, generating a turnover of €0.5m and closing at €102.Monthly turnover tallied to €7.5m.
The MSE Malta Government Stocks Total Return Index registered a loss of 2.2%, as it closed the month at 917.604 points. The 4.1% MGS 2034 (I) was the most active equity with a total volume traded of €1m, closing at €108.69
In the Prospects MTF market, 12 issues were active. The 4.75% KA Finance plc Secured Callable Bonds 2026-2029 registered the most trading activity, as seven deals worth just above €33,500 were executed.
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
