Monthly Round up Report for September 2019

MSE Index advances by 2.458%

The MSE Equity Total Return Index recouped August's 0.85 per cent loss, having appreciated by 2.458 per cent in September, to close at 10,009.936 points. Turnover amounted to €6.6 million, and was spread across 25 equities, of which 13 increased and eight lost ground.

Bank of Valletta plc shares advanced by €0.045 or four per cent, as 348,582 shares changed ownership across 97 trades, closing at €1.17.  HSBC Bank Malta plc (HSBC) shares stayed faithful to their recent losing streak, having registered a decline for the fifth consecutive month. The banking equity oscillated between a monthly high of €1.50 and a low of €1.40, to ultimately close at €1.43. Activity in HSBC shares were spread over 31 deals of 90,533, closing 4.7 per cent lower at €1.43.

FIMBank plc shares fell by $0.06 or 8.8 per cent. The trade finance bank's shares witnessed 18 transactions of 96,660 shares and closed at $0.62. Meanwhile, Lombard Bank plc shares slipped by 0.9 per cent across 11 deals of 66,489 shares, to close at €2.26.

The investments and insurance services provider GlobalCapital plc, registered a 35 per cent rally in its share price. The equity was negotiated over three trades of 15,721 shares and closed €0.07 higher at €0.27. The company approved the half-yearly financial report for the period ended June 30, 2019.  The group registered a €2.3 million profit before tax versus a loss of €2.5 million during the same period last year. This was mainly the result of its positive movement in the fair value of investments. 

The company registered an increase in the value of in-force business by 63% from June 2018 to €1.5 million during the same period this year. This was the outcome of the company's urge to generate new business during the year.

Meanwhile, the company informed the market about the progress on the publication of its 2019 financial analysis summary. The company announced that, on September 2, 2019 the Malta Financial Services Authority confirmed its expectations on the scope of the assurance engagement and the company is taking the necessary steps to address the Authority's requirements.

In the same sector, Mapfre Middlesea plc shares appreciated by €0.14 or 6.8 per cent, as nine deals were executed over 16,000 transactions, to close at €2.20.

Malta International Airport plc (MIA) shares traded at a high of €7.80, however, closed the month 0.7 per cent lower at €7.40. The local airport operator's shares were active on 91 deals of 107,856 shares.

MIA announced the traffic results for August 2019. An 8.4 per cent growth was registered, compared to the figure of August 2018. The rise in passenger numbers was partly due to a 5.8 per cent increase in aircraft movements and a 7.6 per cent increase in seat capacity.

The seat load factor for August improved from last year's percentage, as it stood at 88 per cent. The airport's top driver of passenger traffic was Germany, which recorded a 24.7 per cent increase, followed by France at 13.7 per cent, Spain with a 9.3 per cent gain, the United Kingdom with a positive 3.1 per cent change, and Italy up by 0.4 per cent.

This solid performance was mainly driven by the airport's summer schedule, featuring 16 developments. This includes the new additional routes as well as the improved flight frequencies on numerous existing routes.

GO plc shares fell for the third consecutive month, having declined by €0.04 or 0.9 per cent across 46 transactions of 121,372 shares, closing at €4.38. Meanwhile, GO's spin-off Malta Properties Company plc (MPC), has recorded an increase in its share price for the eighth consecutive month. MPC shares advanced by 5.2 per cent over 41 deals of 263,074 shares, to close at €0.715.

MIDI plc shares increased by 3.1 per cent, as 837,088 shares changed ownership across 59 trades, closing at €0.66. In the same sector, Malita Investments plc shares advanced by 4.1 per cent over 14 transactions of 79,071 shares, to close €0.035 higher at €0.88.

Trident Estates plc (Trident) shares fell by €0.06 or 3.1 per cent, as 17 deals of 46,575 shares were executed, closing at €1.86. The Board of Trident approved for publication its unaudited financial statements for the half-year period ended July 31, 2019. Profit before tax increased by 26 per cent to €135,000 when compared to the figure recorded during the same period last year.

The group's revenue also increased, by 8.3 per cent to €575,000 from last year's figure. Such a rise was mainly coming from the inflationary adjustments to lease agreements and the recording of the new Scotsman Pub lease for a full period. As a result, gross profit went up to €536,000 from the €433,000 registered during the same period last year, primarily due to the adoption of IFRS 16 which imposed new charges on the income statement.  This standard resulted in direct costs through amortisation and finance costs, which stood at €36,000 and €95,000, respectively.

In June 2019, the Board declared a dividend for the financial year ended January 31, 2019. For the current financial year however, no interim dividend is being proposed and a final dividend distribution will be determined on the basis of full-year results.

Meanwhile, the board of Trident announced that an Application for Authorisation for Admissibility to Listing to the Listing Authority has been made. Through such application, the company is requesting the approval of a prospectus in relation to a rights issue. The rights issue shall be offered to shareholders listed on the register of the MSE as at October 4, 2019. If approved, shareholders shall be entitled to the subscription of two new ordinary shares for every five ordinary shares already held, at a rights issue price of €1.25 per new ordinary share. If fully subscribed, the rights issue shall raise about €15 million in gross proceeds, which will be used to partly finance the Trident Park project development.

The food and beverage supplier, Simonds Farsons Cisk plc recorded a significant €0.80 or 7.8 per cent increase in its share price. The equity was negotiated across 21 transactions of 25,320 shares and closed at €11.10. The board of approved the group's unaudited financial statements and interim directors' report.  Profit before tax increased by 5.2 per cent to €6.9 million for the half-year period ended July 31, 2019, when compared to the same period last year. Earnings per share also registered a 4.4 per cent gain, as the six-month period figure stood at €0.213.

A four per cent increase in turnover from last year's figure was also recorded, as it stood at €53.3 million. Operating profit was six per cent higher, at €437,000, than the previous period. This was due to the on-going capital investment throughout the years. The implementation of IFRS 16 imposed increased finance costs, whereas interest costs were left relatively unchanged when compared to the same period last year.

An interim dividend of €1 million, out of tax-exempt profits, shall be distributed. This is equivalent to €0.0333 per ordinary share. This dividend will be paid on October 16, 2019 to the ordinary shareholders listed on the register as at October 2, 2019.

PG plc shares swayed between a record high of €1.91 and a monthly low of €1.66, to ultimately close 12 per cent higher at €1.87. The equity of the retail and supermarkets owner was executed over 44 trades of 226,696 shares.

International Hotel Investments plc shares advanced by €0.12 or 16.2 per cent, as 40 deals of 354,744 shares were executed, closing at €0.86. The board approved the half-yearly financial report for the period ended June 30, 2019. The group's revenue was up by €5.6 million to €122.5 million, as the Corinthia Hotel London improved its overall operational activity. The adjusted EBITDA declined slightly from last year's figure of €20 million, to €19.7 million. This was the result of the Tripoli operations performance, for which EBITDA decreased by €0.4 million to €1.8 million from last year's figure. In April, as fresh hostilities began, the country's volatile situation took a turn for the worse.

During the period under review, the group's profit before tax amounted to €5.2 million versus a loss of €2.3 million. The €8.9 million income in the statement of comprehensive income reflects the currency difference of the group's non-Euro investments in London, Golden Sands Resort timeshare operation in Malta and St Petersburg.

In June 2019, the company declared a net dividend of €0.02 per share. This dividend, which is included with current liabilities, was paid to the company's shareholders after June 30, 2019. The company's NAV per share stood at €1.11.

Tigne' Mall plc shares were the most liquid for the month, having witnessed a turnover of €1.1 million, spread across 18 deals. The equity registered a 6.2 per cent increase and closed at €0.94. Meanwhile, Plaza Centres plc shares closed unchanged at €1.02, as 263,990 shares changed hands over 12 transactions.

In the same sector, Main Street Complex plc shares declined by 1.6 per cent, as four trades of 12,594 shares were concluded, closing at €0.60.

MaltaPost plc shares increased by €0.05 or 3.9 per cent over eight deals of 14,647 shares, to close at €1.35.

Santumas Shareholdings plc shares traded flat at €1.62 across three transactions of 10,084 shares. The company's Annual General Meeting is scheduled on October 11, 2019 for the purpose of considering and approving the annual report and financial statements for the year ended April 30, 2019, as well as other ordinary resolutions.

In the I.T. sector, Loqus Holdings plc shares appreciated by 32.2 per cent, as three deals of 5,000 shares were active, closing the month at €0.08.

RS2 Software plc shares closed unchanged at €1.91, despite having reached a monthly low of €1.85. The equity was negotiated across 97 transactions of 443,236 shares.

The oil and gas logistics services provider, Medserv plc registered a five per cent gain in its share price - having recorded an increase for the fifth consecutive month. Medserv shares were active on 18 trades of 77,034 shares and closed €0.06 higher at €1.26.

Grand Harbour Marina plc shares extended the previous month's 5.4 per cent loss, having declined by 4.3 per cent across two deals of 6,116 shares, closing at €0.67.

In the corporate bond market, 64 issues were active, of which 30 gained ground and 22 fell. Turnover amounted to €6.2 million. The 6% AX Investments plc € 2024 headed the list of gainers, having advanced by 3.4 per cent, to close at €114.85. Meanwhile, the 5.1% 6PM Holdings plc Unsecured € 2025 was the worst performer, having slipped by 2.8 per cent, to close the month at €100.

In the sovereign debt market, turnover amounted to €24.8 million, and was spread across 24 issues, of which short and medium-term issues fell marginally, while long-dated issues advanced. The 2.1% MGS 2039 (I) was the most heavily traded issue, having witnessed a turnover of €6.3 million, closing 0.7 per cent higher at €126.53.