Daily Market Highlights (06.08.2018)

  • The MSE Equity Price Index moved lower for the first time in four days as it slipped by 0.08% to 4,401.458 points. Activity was spread across ten equities, four of which trended lower, five closed the day unchanged whilst only IHI registered a gain. Download a copy of today’s Equity Market Summary.
  • The RF MGS Index recovered strongly from its four-year low as it rebounded by 0.2% today to 1,094.042 points. Euro zone sovereign bond yields dropped markedly today, possibly reflecting disappointing German factory order data as well as renewed geo-political tensions between the US and Iran following the restoration of economic sanctions by the US on the Islamic Republic that were previously lifted under the Obama-era nuclear deal.
  • The most important development today was the publication of the interim financial results by HSBC Bank Malta plc. The bank reported a 38% decline in pre-tax profits to €16.2 million, largely driven by the current unfavourable interest rate scenario as well as risk management actions that were mostly completed in 2017. The Directors declared an interim net dividend of €0.026 per share, representing a decline of almost 15% from the dividend declared in respect of the 2017 interim results. The dividend will be paid on 18 September 2018 to all shareholders as at the close of trading on 14 August 2018. The interim dividend payout ratio was maintained at around the 65% level. HSBC Malta’s CEO Mr Andrew Beane noted that the bank can now move into a new strategic phase characterised by a return to growth and value creation. In this respect, Mr Beane added that the early signs of this new phase are encouraging with significant increases in commercial banking business which has led to a stabilisation of loans and advances. Moreover, HSBC Malta is also seeing increased volumes in retail banking and wealth management business. During this morning trading session, the equity maintained its near five-month high of €1.89 after recovering from an intra-day low of €1.86 (-1.6%). A total of 43,954 shares changed hands.
  • Within the same sector, Bank of Valletta plc held on to the €1.60 level across 49,822 shares.
  • Also among the large caps, Malta International Airport plc and RS2 Software plc also closed the day unchanged at €5.70 and €1.19 respectively albeit on light volumes. Shareholders of MIA as at 20 August are entitled to receive a net interim dividend of €0.03 per share. Meanwhile, RS2 still has to announce the date of the publication of its interim financial statements.
  • Two deals totalling 30,000 shares left the equity of PG plc at its near four-month high of €1.34. The company should be publishing its financial statements covering the financial year ended 30 April 2018 by the end of this month.
  • MIDI plc retreated by 0.4% to the €0.478 level on volumes of 111,000 shares whilst Mapfre Middlesea plc moved back to the €1.96 level (-2%) across 9,278 shares.
  • Plaza Centres plc and GO plc also performed negatively today albeit on trivial volumes. Plaza lost 1% to the €1.03 level whilst GO finished the day 0.6% lower at the €3.36 level. The telecoms operator is scheduled to issue its interim financial statements on 10 August.
  • Low trading activity also took place in the equity of International Hotel Investments plc. The share price advanced by 0.8% to the €0.655 level on just 1,550 shares. IHI still has to announce the date of the publication of its interim financial statements.
  • This afternoon, Malta Properties Company plc announced that the sale of the Sliema Old Exchange has now been concluded. MPC sold this property for €5 million which the company will be utilising to fund its various development projects and/or seek acquisition opportunities. The equity remained inactive today.