The year 2018 was a positive year for local equities, as the MSE Equity Total Return Index advanced by 3.81 per cent to close at 8,999.034 points. A total of 12 equities closed the year in positive territory, in contrast with 11 equities which drifted lower.
Turnover for the year in the equity market totalled €86.3 million, a minimal 1.9 per cent lower than the previous year. The most liquid equity was Bank of Valletta plc, generating a turnover of €23 million.
The best performers of the year were MIDI plc, Malta International Airport plc and Trident Estates plc. At the other end of the spectrum, Loqus Holdings plc topped the list of fallers, followed by Bank of Valletta plc and MaltaPost plc.
In the property sector, Midi plc had an excellent year, as it soared an impressive 91.4 per cent over 2018. The main story affecting the share price was the Manoel Island project. In June, Midi announced that it had entered into preliminary discussions with Tumas Group Company Ltd to explore the possibility of establishing a joint venture with respect to the development of Manoel Island.
Its peer, Malta Properties Company plc was also up 18.8 per cent in 2018, closing the year at €0.57. In May, MPC announced that it has entered into discussions with Dubai Holding LLC for the possible acquisition of a majority shareholding in Smart City (Malta) Ltd.
The largest drag on the index this year was Bank of Valletta plc as it lost 26.1 per cent in value. Last August, in the bank’s interim financial statements, it reported a profit before tax of €13.5 million, down from €67.8 million for the corresponding period in the previous year. The decrease in profit was wholly attributable to a litigation loss provision of €75 million that the group has decided to set aside in the current financial reporting period. The bank also announced that the board of directors decided not to declare an interim dividend and has also expressed its intent not to recommend a final cash dividend for financial year 2018.
In the telecommunications sector, the price of GO plc (GO) climbed a substantial 11.6 per cent year-on-year to reach €3.96. In October, the company announced that it will be seeking to dispose of up to 49 per cent of its shareholding in its subsidiary, BMIT Technologies plc, which focuses on data centre services. The Initial Public Offering is expected to be concluded by February 2019.
The shares of Trident Estates plc, which were listed on the Malta Stock Exchange in January had a very positive first year of trading, closing at €1.50. This translates to a 21 per cent gain over the issue price of €1.24.
Malta International Airport plc reported double digit growth in passenger numbers every month, driven by considerable increases in aircraft movements and seat capacity. The positive performance was reflected in the share price, as the equity closed the year 23.4 per cent higher at €5.80.
On a negative note, MaltaPost plc posted a considerable loss in value of 25.5 per cent during 2018, closing at €1.58. During the year ended September 30, 2018, the company registered a profit before tax of €2.62 million, 14.1 per cent lower than the previous year.
This article, which was compiled by Jesmond Mizzi Financial Advisors Ltd, do 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 more information, contact Jesmond Mizzi Financial Advisors Ltd at 67, Level 3, South Street, Valletta, or on tel: 2122 4410, or e-mail info@jesmondmizzi.com.
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