Daily Market Highlights (06.03.2019)

  • The MSE Equity Price Index trended higher for the seventh consecutive trading session as it added a further 0.3% to 4,568.278 points – the highest since early November 2017. Today’s highlight was the publication of the 2018 financial statements of Lombard Bank Malta plc. Meanwhile, total volumes across the equity market remained healthy as €0.61 million worth of shares changed hands, with the majority taking place in PG and MPC. Download a copy of today’s Equity Market Summary.
  • The RF MGS Index extended yesterday’s strong gain as it increased by a further 0.18% to its highest level in several months of 1,108.351 points. Ahead of the ECB monetary policy meeting tomorrow, bond yields in the euro area continued to drift lower. Most market participants are expecting the central bank to provide further details on the possibility of injecting fresh liquidity across the European banking system through new ultra-cheap loans to commercial banks. Furthermore, attention will also be directed towards any indications on interest rate hikes in the months ahead.
  • This morning, International Hotel Investments plc published a prospectus in connection with a new €20 million 4% unsecured bond issue. The bonds mature in 2026 and their proceeds are earmarked towards supporting the company’s international expansion in two new markets – namely Brussels and Moscow.
  • Lombard Bank Malta plc climbed 10.6% to an eight-year high of €2.50 across 35,162 shares. The bank reported a record set of financial results, largely reflecting a marked increase in lending activity as well as a substantial drop in expected credit losses. In fact, net profits rose almost 65% to an all-time high of €8.45 million whilst the return on equity improved to 8.3% from 5.4% in 2017. The Directors are recommending the payment of a final net dividend of €0.0325 per share. This represents an increase of 25% over the net dividend paid out for the 2017 financial year. Shareholders as at the close of trading on Friday 8 March will be eligible to receive the dividend on 17 April subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on 11 April.
  • Within the same segment, a single deal of just 4,200 shares lifted the equity of Bank of Valletta plc 0.8% higher back to the €1.27 level. BOV is expected to publish its 2018 full year results on 15 March.
  • Among the large companies, Malta International Airport plc also advanced by 0.8% to the €6.50 level on activity totalling 8,461 shares. Today, MIA issued a press release on the award it received from the Airports Council International as the ‘Best Airport in Europe’ in its size category.
  • BMIT Technologies plc rebounded by 1% to the €0.52 level across 66,583 shares. Tomorrow, BMIT is scheduled to publish its results for 2018.
  • In contrast, HSBC Bank Malta plc moved back to its over two-year low of €1.60 (-1.2%) after opening 1.9% higher at the €1.65 level. Only 4,500 shares traded. Shareholders as at 14 March will be entitled to a net dividend of €0.012 per share.
  • Meanwhile, GO plc maintained its multi-year high of €4.66 on activity totalling 14,700 shares. The company is due to publish its 2018 full-year financial results on Friday 8 March.
  • PG plc traded flat at the €1.37 level on strong volumes totalling 183,589 shares having a market value of €0.25 million.
  • Malta Properties Company plc also ended the day unchanged at the €0.57 level across 181,679 shares. The company is due to publish its 2018 financial results on 20 March.