Daily Market Highlights (03.08.2018)

  • The MSE Equity Price Index moved higher for the third consecutive day as it added a further 0.36% to 4,404.879 points, mostly driven by the gains in IHI which outweighed GO’s decline. During the past five days, the local equity index added 0.1% despite the significant losses suffered by BOV. Overall, trading volumes increased substantially to a ten-week high of €2.81 million. Download a copy of today’s Equity Market Summary.
  • The RF MGS Index moved lower for the fifth consecutive day as it retreated by a further 0.15% to a fresh near four-year low of 1,091.865 points. Movements in the prices of MGS’s reflected gains in the yields of euro peripheral countries as these climbed higher. In contrast, the 10-year and 20-year benchmark German Bund yields trended lower from their recent highs. During this week, the RF MGS Index posted its sharpest drop this year as it shed 0.81% amid signs of monetary policy tightening in the US and the UK as well as improving inflation across the world.
  • Malta Properties Company plc surged 2% to regain the €0.51 level on four deals totalling 110,000 shares. On Wednesday, 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. Moreover, the company yesterday announced that it entered into a promise of sale agreement with Mercury Exchange Limited for the sale and transfer of the St George’s Exchange (including its surrounding land) for €13.75 million. The promise of sale agreement is valid and effective up to three years. MPC noted that the proceeds from the disposal of the St George’s Exchange are expected to go towards development projects which the company is currently undertaking and other projects that are in the pipeline. The St George’s Exchange was valued at €2.2 million as at 18 September 2015.
  • Within the same segment, Malita Investments plc added 1.7% to the €0.885 level across 13,525 shares. The company is due to publish its interim results on 10 August.
  • Low trading activity also took place in the equities of International Hotel Investments plc and Mapfre Middlesea plc. IHI climbed 3.2% to regain the €0.65 level whilst Mapfre Middlesea recaptured the €2.00 level (+2%) on just 2,110 shares. IHI still has to announce the date of the publication of its interim financial statements.
  • Following the heightened volatility in Bank of Valletta plc in the past two days, the equity traded unchanged at the €1.60 level today on a total of 34,447 shares. On Wednesday, 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.
  • HSBC Bank Malta plc retained its near five-month high of €1.89 level after recovering from an intra-day low of €1.87 (-1.1%). A total of 25,745 shares changed hands. The bank is set to publish its interim results on 6 August.
  • Malta International Airport plc held on to its all-time high of €5.70 across 11,378 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.
  • Two deals totalling 3,158 shares left the equity of Tigne’ Mall plc unchanged at the €0.95 level. Today, Tigne’ Mall published its interim results covering the six-month period ended 30 June 2018. The company registered nearly 6% growth in EBITDA to just under €2.8 million whilst net profits increase by 6.5% to €1.56 million when compared to the corresponding period last year. The Directors declared an unchanged net interim dividend of €0.0128 per share which will be paid on 31 August to all shareholders as at the close of trading on Tuesday 14 August.
  • Meanwhile, GO plc moved back to the €3.38 level (-0.6%) on just 3,000 shares. The quadruple play operator is scheduled to reveal its interim financial performance on 10 August.