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25.06.2020 FROM PAGE 1 Among these were MIA itself, Far- sons Group and Corinthia Group, which was also affected by its interna- tional holdings. As more measures were introduced, more listed companies started showing signs of strain. is was the case when the government announced social dis- tancing rules, including advising el- derly people to stay inside. en it was listed companies like Plaza and Main Street Complex that started sliding on the stock exchange. is was exactly in line with what happened globally, a financial analyst told BusinessToday. "Each and every measure introduced tended to affect companies listed on various exchang- es, depending on their core focus," he said. "Another notable development was the fact that many companies, includ- ing those listed on the Malta Stock Ex- change, suspended their decisions to announce or issue dividends, in a bid to assist the company's cashflow." In fact, in Malta, the various banks' board of directors were the first to rec- ommend a suspension of dividends, followed by many other companies. "Farsons, which at the onset of the pandemic made it clear that it could take a hit due to a percentage of its business depending on tourists, did not announce dividends this year," the sources said. e board of directors of GO plc went as far ta revise its recommendation for a dividend from 14c to 10c. GO CEO Nikhil Patil told BusinessToday that various measures were implemented to ensure that GO continued to provide the best possible service to its custom- ers during the COVID-19 pandem- ic while safeguarding its employees, shareholders, and the long-term stabil- ity of the business. "In the light of a continued positive financial performance throughout the crisis coupled with the recently an- nounced lifting of travel restrictions, the Board of Directors considers a dividend payment of €0.10 to be a pru- dent and equitable way forward which will enable GO to continue sustaining strategic investment in its network and connectivity during the pandemic, while delivering a solid return on in- vestment for our shareholders," he said. "e proposed €0.10 final dividend together with the special interim div- idend of €0.41 paid in 2019 from the partial sale of GO's shareholding in BMITT result in a total dividend re- turn for year 2019 of €0.51." (Look out for the full interview in next week's issue of BusinessToday.) Bonds leading recovery Sources said that one of the most meaningful measures introduced by the government was the decision to underwrite bonds that were due to ma- ture this year. "e government offered assistance to those companies with a reduced cashflow and who had bonds coming up for maturity," the sources said. "e government also promised to underwrite any mature bonds that re- mained unsold." e measures seemed to bouy the bonds market. GO plc announced that CableNet, its Cypriot subsidiary, would be issuing bonds in Malta to be used by the com- pany in Cyprus. Shoreline too announced recently it would be issuing bonds valued at €40 million and maturing in 15 and 25 years. And as lockdown and distancing measures started to be eased, indus- tries started to recover and this started to show on the stock exchange. "In the past three weeks, however, ac- tivity on the Malta Stock Exchange has fallen considerably, particularly with regards to shares," the sources said. is is probably due to the fact that many possible investors are awaiting the publication of companies' financial results for 2019. These reports are usually pub- lished in April, but at the onset of the pandemic, financial authorities announced the deadline for the pub- lication of financial results would be extended from the end of April to the end of June. Once a company published its finan- cial results, stockbrokers are obliged by law to issue financial analysis summa- ry with their forecast for the company's outlook for the following year. "But with the fluidity of the COV- ID-19 pandemic, with no clear end in sight, investors might be thinking that these financial analysis summaries could very well turn out to be useless." Bonds leading equity market recovery 3 NEWS FROM PAGE 1 e Malta Developers Associa- tion called for a holistic national plan in the wake of various changes to development briefs being sug- gested by the Planning Authority. Although the MDA made no ref- erence to particular plans, over the past weeks, the PA has initi- ated public consultation exercises to change the development briefs for Corinthia's Ħal Ferħ complex, the Jerma hotel site, and the Marsa sports grounds. "We cannot keep treating devel- opment briefs like chewing-gum. Development briefs should be part of a holistic vision and not a tool which could be used only to accommodate individual pro- jects," the MDA said in a statement signed by its director Marthese Portelli, a former Nationalist MP. e MDA said the public and potential investors are being short- changed through these "so-called" reviews, which it described as "un- fair and unequitable" and a case of constantly moving goalposts. e lobby group argued that Mal- ta needs a solid, long-term devel- opment plan which will establish the country's vision for the coming years based on more sustainable development, greener areas, and more open recreational spaces for the public. e PA recently proposed chang- es to the development brief for the Ħal Ferħ development in Għajn Tuffieħa to allow residential devel- opment on the site now owned by the Corinthia Group. Other development briefs being drafted or changed include those regulating the Jerma site in Marsas- kala, and the Marsa sports grounds that include the horse racing area and the Center Parc shopping mall on its outskirts in Qormi. MSE Total Return Index from 26 March to 24 June 2020 MDA hits out at 'so-called unfair and unequitable' reviews over the past weeks, the PA has initiated public consultation exercises to change the development briefs for the Jerma hotel site on Marsaskala

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