Daily Market Highlights (02.08.2018)

  • The MSE Equity Price Index added a further 0.36% to 4,389.069 points, mostly driven by the gains in MIA, HSBC and Farsons whilst only BOV and GO trended lower. Trading volumes climbed markedly to €0.89 million, reflecting intense activity in MIA whilst encouraging volumes also took place in Farsons and BOV. Download a copy of today’s Equity Market Summary.
  • The RF MGS Index trended lower for the fourth consecutive day as it retreated by a further 0.23% to a fresh near four-year low of 1,093.467 points. Bond yields added to their recent gains, boosted by the readiness of the US Federal Reserve to continue tightening monetary policy as well as signs that inflation around the world is gaining traction. Furthermore, the Bank of England today raised its reference interest rate by 25 basis points to 0.75% which, in turn, is the second interest rate hike in more than ten years.
  • Malta International Airport plc surged 3.6% to yet another record high of €5.70 on heightened activity of 78,271 shares. Last week, MIA issued revised financial targets as well as traffic projections for 2018. The company is now expecting passenger movements to grow by 13% to reach yet another record of 6.77 million passenger movements. This should translate into increased profitability for the airport operator, with net profits now anticipated to exceed €29 million representing a 20% increase over last year. Shareholders as at close of trading on 20 August 2018 are entitled to receive a net interim dividend of €0.03 per share.
  • HSBC Bank Malta plc moved to a near five-month high of €1.89 (+1.1%) on five deals totalling 12,818 shares. The bank is set to publish its interim results on 6 August.
  • Simonds Farsons Cisk plc added 1.4% to regain the €7.50 level across 30,200 shares.
  • In the property segment, Malita Investments plc rebounded by over 4% to recapture the €0.87 level across 40,000 shares. The company’s interim results are scheduled to be published on 10 August.
  • Trident Estates plc posted a more modest gain of 0.8% to the €1.33 level on volumes totalling 25,915 shares whilst both Malta Properties Company plc (22,000 shares) and Tigne’ Mall plc (10,000 shares) ended the day unchanged at €0.50 and €0.95 respectively. Yesterday, MPC published its interim results covering the six-month period ended 30 June 2018. The company registered a 12.3% increase in net profits, on the back of higher revenues as well as lower net finance costs. The Directors noted that in view of the company’s long-term nature of lease agreements with its tenants, revenues should be supported at current levels in the near-term and will increase further once additional developments are completed and rented out.
  • A single deal of just 4,400 shares left the equity of Grand Harbour Marina plc at the €0.75 level. GHM is scheduled to publish its interim results on 24 August.
  • Bank of Valletta plc erased some of yesterday’s strong recovery as it slipped by 1.2% to the €1.60 level on volumes totalling 69,123 shares. Yesterday, the international credit rating agency S&P downgraded its long-term Issuer Default Rating on BOV to “BBB” from “BBB+” and maintained its outlook as “Negative”. S&P explained that it lowered its rating on BOV due to increased reputational and operational risks for the Maltese banking sector generally. Specifically for BOV, however, S&P added that it sees risks for the bank’s business, capital and risk profiles from potential reputational damage and litigation charges relating to the Deiulemar Trust. On the other hand, S&P anticipates that BOV’s resilient profitability and contained credit losses should enable it to maintain its risk-adjusted capital ratio before adjustments at close to its 2017 levels.
  • GO plc dropped by 0.6% back to the €3.40 level albeit on trivial volumes. The company’s Board of Directors is scheduled to meet on 10 August to consider and approve the interim financial statements as at 30 June 2018.