Banking equities take centre stage

Movements in Equity and Bond Indices

The MSE Equity Total Return Index ended the month 0.2% lower at 7,393.122 points. A total of 28 equities were active, as six registered gains while another 17 closed in negative territory. Total turnover doubled to €3.2m.

The MSE Corporate Bonds Total Return Index added 0.1% to the previous month’s gain, closing at 1,125.885 points. A total of 79 issues were active, as 24 bonds posted gains while 45 registered declines. Total turnover equaled to €6.6m, generated across 868 transactions. The 3.5% Bank of Valletta plc € Notes 2030 S2 T1 registered the best performance and was also the most liquid bond, gaining 9.7% across 97 transactions worth €1.7m. The bond closed the month at €89.99. The worst performing issue was the 3.25% AX Group plc Unsecured Bonds 2026 Series I,

ending the month 9.7% lower at €90.20. The MSE MGS Total Return Index

slightly recovered the previous decline, after posting a 0.2% gain to end the month at 886.394 points. A total of €4.3m was generated across 225 deals. The 2.3% MGS 2029 (II) registered the best performance of 4.5%, closing at €99.50. The 2.1% MGS 2039 (I) registered the biggest drop of 19.1%, ending the month at €80.92.

Top 10 Market Movers HSBC Bank Malta plc

registered the best performance for the first month of 2023. The share price of the banking equity spiked by 19.7% to close at €0.85. This was the outcome of 87 deals worth €413,662.

Bank of Valletta plc also enjoyed a positive month, as it recorded a gain of 8.6%. A total of 1.2m shares changed hands across 126 transactions. BOV was the most liquid equity, as €1m worth of shares were executed. The equity ended January at €0.88.

FIMBank plc was up by 13.7% to $0.216, equivalent to a $0.026 change. A total of 31,656 shares were spread over four deals.

The share price of Simonds Farsons Cisk plc advanced by 2.2%, as it closed the month at the €7 price level. A total of 6,699 shares changed hands across 16 transactions.

On the other hand, International Hotel Investments plc

registered a 13.3% negative movement in its share price, significantly affecting the monthly performance of the MSE Index. The equity closed the month at the €0.585 price level. A total of 76,892 shares worth €47,060 changed hands across 14 transactions.

Lombard Bank Malta plc

headed the list of fallers with a 15.1% decline. The banking equity closed the month at €0.90 after trading at a monthly low of €0.75. This was a result of six deals involving 75,999 shares.

GO plc also finished the month in the red, as 24 deals worth €120,929 were executed. The share price of the telecommunications operator declined by 3.5%, finishing the month at €2.76.

Mapfre Middlesea plc followed suit, as 11,147 shares pushed the share price 6.3% lower, to €1.50.

Malta International Airport plc (MIA) finished the month at €5.70, after trading at a monthly low of €5.50. On the month, the equity shaved 1.7% off its share price, as 95 transactions worth €623,618 were executed.

Meanwhile, Malta Properties Company plc declined by 8%, as it closed the month at €0.46. This was the result of 75,482 shares spread across nine transactions.

Company Announcements HSBC

announced that the Bank has entered into a €30m loan agreement with HSBC Continental Europe. The purpose of the loan is to enable the Bank to meet the minimum requirement for own funds and eligible liabilities. The loan, which is unsecured, is for a period of four years with an option of early repayment as from the third year. The loan bears interest at a rate equal to 3-months EURIBOR plus a margin of 127 basis points, which is currently resulting in an effective rate of 3.77%.

MIA announced its five-year investment plan, where the company will be investing €175m in the evolution of the airport campus, €39m of which are planned to be disbursed during 2023. Immediate projects, which are slated for completion in 2023, include doubling the current footprint of the customs area, unveiling a covered walkway linking Park East to the terminal, and freshening up the food and beverage offering with the introduction of two new outlets. Meanwhile, works on the €40m Apron X project, which will boost Malta International Airport’s aircraft parking capacity and its ability to handle mixed-fleet operations, have picked up the pace, as the company eyes summer 2024 for the completion and utilization of the first parking stands. For 2023 the company is targeting total revenue of €97m and EBITDA of €59m. Net profit is projected to be €29m.

MedservRegis plc (MDS) announced that Regis Uganda Ltd (REGIS) has been awarded a contract by Vallourec Oil and Gas Uganda Ltd (VOGU), in support of services being provided to TotalEnergies E&P Uganda B.V. (TotalEnergies). VOGU has entrusted REGIS for the provision of Oil Country Tubular Goods handling services on the local yard operated by VOGU in Buliisa. The contract term is 42 months and the services by REGIS are being performed at TotalEnergies’s Drilling Support Base inside the Industrial Area located in Buliisa District, Uganda.

In addition, Medserv Cyprus Limited, has been awarded a new contract with Chevron Cyprus Limited for the provision of operational base support services from the company’s facilities in the port of Limassol, Cyprus.

The board of MaltaPost plc (MTP) resolved that it would be in the best interest of the company to recommend to its shareholders a share split of the company’s shares on a two for one share basis. This will result in every one share having a nominal value of €0.25 being split into two shares, each with a nominal value of €0.125. The proposed share split is intended to allow easier access to a larger number of investors which should improve trading liquidity in the company’s shares. MTP will be seeking shareholders’ approval of the above share split at the AGM which is scheduled to take place on February 16, 2023.

The board of AX Real Estate plc held a meeting on January 9, 2023 where the board declared and resolved to distribute a net interim dividend of €3.4m equivalent to a net dividend of €0.0125 per ordinary share.

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: 21224410, or email info@jesmondmizzi.com