MSE Index maintain

The MSE Equity Total Return Index fell by 2.517 per cent in November – adding on to the previous month’s 1.48 per cent decline, to close at 9,613.402 points. Turnover amounted to €4.6 million and was spread across 24 equities, of which 15 lost ground and seven advanced.

BMIT

Technologies

plc

shares decreased by 3.8 per cent, as 1.3 million shares changed ownership across 67 transactions, closing at €0.51. The company issued its interim directors’ statement for the three-quarter period of the financial year ending December 31, 2019. The company announced a positive performance which is mainly reflected by the continued aim of the company to increase its service offerings.

During this period, the company recorded a 5.8 per cent increase in revenue over the same period last year. This translates into €16.7 million as at September 2019 when compared to €15.8 million in 2018. Such increase resulted from the positive performance of the main operating segments of the company. The company expects revenue to grow further in the last quarter, hence allowing the company to successfully reach its 2019 objectives.

The company is undertaking several initiatives in order to sustain this improved performance for the long-term. Case in point, by embarking on an investment programme in the cooling plants within its data centre facilities. Expectations for this investment are a reduction in energy costs. This highlights a substantial part of the total costs incurred by the company in running its facilities.

The company has also engaged in other significant initiatives with the main goal of sustaining and improving its future performance. These include the company’s shareholders’ approval to acquire property in Ħandaq, which is planned to be concluded early next year. In September 2019, the company has also augmented its cloud offering by launching a suite of managed services related to Microsoft Azure cloud, which will enable customers to retain their data locally. Moreover, work on the new data centre in Żejtun, is progressing as planned, and it is envisaged that the new facility will be operational by end 2020.

Meanwhile, GO plc recorded a decline in its share price for the fifth consecutive month, having declined by 3.7 per cent. The telecommunications services provider’s shares were active on 37 trades of 127,135 shares, and closed €0.16 lower at €4.18.

During the month, GO announced the approval of three transactions to be entered into inter alia with Cablenet Communications Limited, a limited liability company incorporated under the Laws of Cyprus, in which the company holds 51 per cent of the issued share capital.

The first transaction relates to the loan agreement dated March 28, 2019, whereby company agreed to make available to Cablenet a loan with a maximum amount of €3 million. On November 25, 2019, the parties have amended and restated the terms and conditions of the original agreement, which will come into effect when the issue and allotment of the New Share in terms of the settlement agreement occurs. It was agreed to extend the facility to €7 million and to be repaid by November 25, 2024. In the event of a default, GO shall have the right to capitalise any amount owing to it.

The second transaction relates to the capitalisation of two loans, of which settlement amounts were €15.8 million and €0.8 million, respectively. On November 25, 2019, the parties have agreed to capitalise these debts and hence release Cablenet from any related obligations and liabilities. Following the issue and allotment of the new shares, GO will hold 60.26% of the Cablenet’s issued share capital.

The third transaction is related to the option agreement between the company and Nicolas Shiacolas, who together with GO, are the sole subscribers to the issued share capital of Cablenet, have on the 25 November 2019 entered into an option agreement under which Mr Shiacolas has been given an option to subscribe for additional shares in Cablenet subject to the option becoming exercisable once the New Shares have been issued and allotted to the company and provided that such issue and allotment takes place on or prior to December, 31 2019. The option shall be exercisable commencing on the effective date up to and including March 31, 2020. The option shall permit Mr Shiacolas to subscribe for additional shares in Cablenet up to a maximum of 49 per cent of the issued share capital in Cablenet at any point in time.

Bank of Valletta plc

shares closed €0.04 or 3.6 per cent lower, as 333,418 shares changed hands over 106 deals. Meanwhile, FIMBank plc shares fell by 2.3 per cent across 16 transactions of 187,394 shares, closing at $0.625.

HSBC (HSBC)

Bank

Malta

plc

shares added on to its ongoing losing streak – having recorded seven consecutive monthly declines. The banking equity stumbled by a 9.8 per cent over 52 trades of 155,718 shares, to close €0.13 lower at €1.20.

HSBC announced that following its strategic plan to increase focus on digital banking services and to modernise the branch network, the application period for the related voluntary schemes has ended and employees will be soon contacted. The bank is expecting employee levels to decline by circa 180 persons. This will result into a restructuring charge of around €16m in the financial year ending December 31, 2019. In the longrun, the bank will benefit from ongoing cost savings.

Despite this employee reduction, the bank still remains one of Malta’s largest employers. Such implementation of the strategic actions, which were announced on October 10, 2019, will enable the bank to maximise the opportunities arising from changing customer usage of banks and to continue to mitigate long-term impact of negative interest rates.

The bank reported a higher profit before tax when compared to the same period last year, in its interim directors’ report for the ninemonth period ending September 30, 2019.

In total, revenue was lower than that of 2018. Retail banking reported a higher revenue when compared to the same period last year. However, this positive momentum was offset by commercial banking which reported a lower revenue. This decline in revenue was due to the active reduction in non-performing loans and risk-related actions across 2018, which resulted into a lower average loan balance. Moreover, the negative market movements during the third quarter of 2019 negatively impacted the HSBC Life Assurance subsidiary.

Expected Credit Losses remained within management expectations and below 2018, and overall asset quality remained satisfactory. In line with interim results, operating expenses declined from the same period last year due to the bank’s continuous focus on cost control. Loan advances to customers increased while Commercial Banking balances remained stable at December 2018 levels. Customer deposits have also increased marginally, while the bank’s liquidity position is still exceptionally strong and regulatory capital ratios are still over the regulatory capital requirements.

Lombard Bank Malta plc

shares were the only gainers in the banking sector, having increased by 0.9 per cent, over 16 trades of 27,114 shares, to close at €2.26.

The investments and insurance services provider GlobalCapital plc, registered a 3.7 per cent gain in its share price, as two transactions of 9,200 shares were negotiated, closing at €0.28. Meanwhile, Mapfre Middlesea plc shares closed unchanged at €2.14, despite having reached a monthly high of €2.20 and a low of €2.12. The equity was active on 18 deals of 47,420 shares.

Malta International Airport plc (MIA) shares recorded a

decline in its share price for the fourth consecutive month, having slipped by 1.4 per cent. The local airport operator’s shares were executed across 54 transactions of 56,635 shares, closing €0.10 lower at €7.15.

MIA issued the interim directors’ report and confirmed that since its previous announcement, issued on July 25, 2019 to date, there were no material events or any transactions which might have impacted its financial position, pursuant to the applicable listing rules.

The company’s financial position for first three quarters of 2019 remained sound and its performance was superior to 2018. During the period under review, revenue increased by 9.2 per cent to €77.3 million when compared to the same period last year. Similarly, profit before tax has also increased to €41.7 million by 8.1%. Total expenditure increased by a moderate 3.7 per cent to €27.7 million and capital expenditure amounted to €12.8 million for the first nine months of the year.

Furthermore, MIA announced that the airport welcomed more than 6.3 million passengers between January and October. This results into a 6.7 per cent increase when compared to the same period last year. The first 10 months of the year all performed well and posted growth, with the summer season - stretching from April until October for the aviation industry - registering an increase of 7.7 per cent in passenger movements at Malta Airport.

International Hotel Investments plc (IHI) shares fell by

2.4 per cent, adding on to the previous month’s 4.7 per cent decline. The equity was negotiated over 23 trades of 53,718 shares, closing at €0.80. In the company’s interim directors’ report, IHI delineated the company’s performance since the beginning of this year. The targets set for the current financial year are expected to be reached and EBITDA is expected to exceed the previous year’s figure. As at end of October, business continued to show strength, and the company’s outlook remains positive.

The company is expecting foreign exchange movements to be favourable when converting into Euro. As a result, profit after tax for the year will be positively impacted. On the other hand, when it comes to valuation movements on investment properties or assets held by the company, any impact can only be calculated at end of year.

In the third quarter of 2019, IHI completed a three-year agreement to provide white label management services to the Meydan Group for its two existing hotels in Dubai. In addition, in 2021 the luxury beachfront Corinthia hotel is to be completed. This will be owned by Meydan whereas operational management will be held by Corinthia Hotels.

The company also updated the market with its commitment to commence a program of asset disposals, with the main aim of realising capital gains in its financially maturing hotels besides releasing equity to fund further acquisitions across the world. In this regard an international marketing exercise for the sale of Corinthia Hotel in Prague is underway with bids to be further negotiated by end of year.

The oil and gas logistics services provider Medserv plc, registered a 6.8 per cent gain, as 20 deals of 125,774 shares were executed, closing €0.08 higher at €1.25.

Grand Harbour Marina plc

shares extended its losing streak, having recorded a decline in its share price for the fourth consecutive month. The equity fell by €0.04 or 6.8 per cent across six transactions of 59,580 shares, to close at €0.55.

Tigne Mall plc

shares fell by a minimal 0.6 per cent, over five trades of 14,790 shares, closing at €0.90. Meanwhile, Plaza Centres plc shares decreased by one per cent, as six deals of 35,500 shares were negotiated, to close at €1.02.

In the same sector, Main Street Complex plc (MSC) shares trad