In a recent article elsewhere in the printed media, stockbroker Edward Rizzo highlighted MIA’s massive cash resources of €53.7 million as at 30 September. He correctly urged the company to consider restarting the payment of an interim and final dividend. This is certainly justified and I would add that cash resources stood at €31 million at the end of 2020; increased by a mere €1.7 million by the end of 2021 through the effects of the covid-19 pandemic but, in just nine months of this year, rose by no less than €21 million as a result of the resurgence of airline traffic.

It will be recalled that the last time that MIA’s shareholders received a dividend was three years ago in September 2019. During the same period the local banks whose shares are quoted on the Malta Stock Exchange were prohibited by the European Central Bank from paying any dividends so as to prop up the banks’ capital base. There are bound to be many who hold shares in MIA and also in one or more of the local banks and who, especially pensioners, rely on dividend income to maintain their standard of living. Moreover, MIA’s stock price that reached a high of €7.95 in 2019 now trades at €5.70, a fall of 28.3%.

Mr Rizzo ended his article with the very apposite comment that investors’ sentiment remains very weak across the Maltese equity market. If quoted companies do not pay dividends the market is bound to remain in the doldrums and this will certainly not encourage investment in local company shares.

 

Anthony R Curmi

St. Julians