MSE Index turns negative

Last Updated on Thursday, 15 December, 2022 at 12:24 pm by The Malta Business Weekly

Monthly Round up Report for November 2022

The MSE Equity Total Return Index (MSE) declined by 3.1% to close the month of November at 7,495.806 points. Trading turnover was just below €2.4m. A total of 30 equities were active, five of which advanced and 22 fell.

In the financial sector, Lombard Bank Malta plc (LOM) was one of the few positive performers, as the share price of the banking equity advanced by 10.2%. The equity ended the month at the €1.08 price level. A total of 16 transactions worth €51,169 were executed. During the month, the company’s share price adjusted to reflect the recently announced 2:1 share split.

LOM held its Extraordinary General Meeting where all three extraordinary resolutions were approved. However, the ordinary resolution, where the bank was seeking authorisation to increase the issued share capital through the issuance of new shares, was not approved.

The share price Bank of Valletta plc (BOV) retracted by 4.4% or €0.04, ending the month at €0.86. This was the outcome of 72 transaction involving the exchange of approximately 0.5m shares. BOV was the most liquid equity, recording slightly more than €0.4m in turnover.

The bank published its interim directors’ report for the period January to September 2022, where the bank recorded a loss before tax of €55.7m. Excluding the effect of the settlement of the Deiulemar claim in May this year, the nine-month profit amounted to €47.8m, up by 3% compared to the same period last year.  Revenue for the first nine months of 2022 stood at €202.3m. This constituted an improvement of 16.8%, reflecting the increase in Eurozone interest rates coupled with a rise in volumes in the retail sector, particularly in home lending, cards, and payments.

Its peer, HSBC Bank Malta plc (HSBC) closed at €0.73, as it registered a 5.2% decline. A total of 197,304 shares change hands across 48 transactions. From a year to date perspective, the equity is down by 20.7%.

HSBC announced its results for the nine-month period ended September 30, 2022. Reported profit before tax amounted to €33.5m, an increase of €8.3m over the same period last year. Adjusted profits, which represent reported profits excluding significant items, amounted to €34.8m compared to €28.6m reported last year. Significant items incurred in 2021 and 2022 mainly consist of restructuring provisions and related transformation costs.

A decline of 4.8% was recorded by APS Bank plc,as it ended the month at €0.595. A total of 56,509 shares were spread across 26 transactions. On a similar note, FIMBank plc kept hold of the previous month’s closing price of $0.22, as six deals involving 52,209 shares were recorded.

Mapfre Middlesea plc registered a decline of 6.3%, as it closed at €1.50. This was the outcome of 15,365 shares spread over 13 deals.

In the same sector, LifeStar Insurance plc registered a positive performance, as it closed 11.1% higher at €0.50. A total of 13,781 shares changed hands across five transactions.

LifeStar Holdings plc closed 5.3% lower at €0.90, equivalent to a €0.05 change in price. Three deals involving 660 shares were executed.

International Hotel Investments plc (IHI) was also active, as it traded 21 times over a spread of 314,602 shares. The equity’s price declined by 6.7% and closed at €0.70.

During the month, IHI published a business update for the third quarter. IHI Group’s revenue for 2022, for all hotels and other operations, is expected to reach €232m, an increase of €8m on the figure announced in August. Revenue for the year is expected to be 84% of the 2019 level and is being driven by IHI owned hotels. EBITDA is forecasted at €49.1m for 2022 and is based on volume increases as business returns.

Malta International Airport plc (MIA) closed in the red at €5.75, translating into a 1% negative movement in price. The equity saw 57,108 shares change ownership across 32 transactions, worth €0.3m.       

The airport operator welcomed 0.6m passengers in October, recovering nearly 84% of the traffic it had handled in October 2019. The seat load factor for the month reached 86%, marking an increase of 3.7% over pre-pandemic levels.

MIA approved the group’s financial statements for the period between January and September 2022. The group’s revenue totalled to €66.5m while the group’s staff costs increased by 46.1% over the same comparable period in 2021. This increase was driven by the discontinuation of the COVID-19 Wage Supplement in May 2022, as well as the resumption of recruitment to be equipped for the summer operation.

In the property sector, a double-digit decline of 26.5% was recorded by MIDI plc,as it closed at €0.25. This was the result of 29,709 shares spread across four transactions.

Similarly, Hili Properties plc traded three times, as 118,500 shares changed hands. As a result, the equity shed 9.1% to €0.22.

VBL plc recorded a double-digit gain of 18.2%, closing the month at €0.26. This was the result of a single transaction of 0.35m shares.

VBL announced that on November 4, 2022, it executed the final deed of sale and purchase with Pace Brothers plc through which the company purchased and acquired a number of immovable properties. As part of the transaction, the vendor has become a shareholder of the company following the part payment of the purchase price by the company to the Vendor in ordinary shares.

AX Real Estate plc closed the month flat at the €0.535 price level. Four transactions involving 39,794 shares were executed.

Malta Properties Company plc closed the month in the red at €0.494, equivalent to a 0.8% negative movement in price. A total of 11 deals involving 53,898 shares were executed, generating a total monthly turnover of €27,464.

Two deals involving 4,480 Malita Investments plc shares resulted into a negative 4% change in price. The equity ended the month at €0.73.

Similarly, a sole transaction of just 66 Santumas Shareholdings plc shares registered a 7.6% decline. The equity closed at €1.34.

Trident Estates plc closed the month at €1.45, translating into a 2% decline. A total of four deals worth €21,450 were executed.

Plaza Centres plc reached a monthly high of €0.76 but closed 4% lower at €0.73. A total monthly turnover of €16,728 was recorded, as 22,800 shares changed hands across three transactions. 

Meanwhile, Simonds Farsons Cisk plc reached a high of €7.70 but closed at €7.35, lower by 7.6%. This was the result of 16,700 shares spread over 12 deals.

Retail conglomerate, PG plc¸ ended the month 1.9% higher at €2.14, as 124,682 shares were spread over 12 deals. On the other hand, M&Z plc declined by 4.1%, as seven deals involving 45,326 shares dragged the price to €0.70.

The Board of PG plc announced that on November 21, 2022, Pavi Shopping Complex Limited, a wholly-owned subsidiary of PG plc, entered into a promise of sale agreement with Nylon Knitting Limited for the transfer of land in the limits of Qormi. The property is being transferred for the consideration of €7m, 10% of which sum has been paid by PG plc to the vendor as a deposit on account of the price. The remaining balance shall be settled upon entry into the final deed of sale by the parties.

The IT services provider RS2 Software plc followed suit with a 9.4% negative movement in share price. The equity finished the month at €1.25, as 155,385 shares generated a total turnover of €0.2m across 19 deals.

A total of 62,620 GO plc shares changed ownership across 19 transactions, dragging the price 2.7% lower to €2.88. During the month, the equity traded at a high of €2.96.

BMIT Technologies plc registered a 3.8% decline in price, as 11 deals involving 90,700 shares were executed. The equity ended the month at the €0.46 price level.

Harvest Technologies plc erased the previous month’s gain, as two transactions of 1,900 shares dragged the equity 15% lower to €1.25.

Loqus Holdings plc stood unchanged, closing the month at €0.19. The equity was active across two deals of 7,444 shares.

A 7.1% loss was recorded by MedservRegis plc (MDS),as it finished the month at €0.65. Five deals involving 33,167 shares were executed.

During the month, MDS published its interim report. The consolidated revenue for the nine-month period ended September 30, 2022 amounted to €47m, while the consolidated EBITDA amounted to €8.8m. The management added that it is reasonably confident that the company is on track to exceed its forecasted results for the year.

MDS also announced that its subsidiary, Middle East Tubular Services (Iraq) Ltd (METS) has been awarded a contract term of three years by Kuwait Energy Basra Limited (KEBL).

Meanwhile, three deals involving 11,739 MaltaPost plc (MTP) shares resulted into a negative 0.9% change in price, as the equity closed at €1.10.

The Board of MTP announced that it will meet on December 19, 2022 to consider and approve the financial statements for the year ended September 30, 2022.

The best performance was recorded by Grand Harbour Marina plc,as it gained 67% to €1.17. This was the outcome of 2,750 shares executed across two transactions.

In the fixed-income market the MSE MGS Total Return Index gained 2.2% to 893.691 points. Out of the 23 active issues, the 4% MGS 2032 (VII) r was the most liquid bond, as it registered €16.5m in turnover and closed at €106.13.

The MSE Corporate Bonds Total Return Index continued to trend lower, this time with a loss of 1.3%, ending the month at 1,120.289 points. Out of the 68 active issues, the 3.5% Bank of Valletta plc € Notes 2030 S2 T1 generated the most turnover, tallying to €0.4m, and ending the month at €88.

In the Prospects MTF market, 10 issues were active. The 4.25% CC Finance Group plc Unsecured Callable 2024-2026 and the 5.25% Klikk Finance plc € Unsecured 2027 were the most liquid, as both generated a total monthly turnover of €0.2m. Both bonds ended the month at €100.

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

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