Daily Market Highlights (07.08.2018)

  • The MSE Equity Price Index retreated by 0.75% to 4,368.500 points reflecting declines in the share prices of BOV and HSBC whilst only GO trended higher. Activity was muted as only €0.15 million worth of shares changed hands, most of which took place in BOV. Download a copy of today’s Equity Market Summary.
  • The RF MGS Index moved higher today as it added 0.14% to 1,095.600 points. Malta Government Stock prices increased mirroring the downward pressure on euro zone sovereign bond yields as fresh data on German industrial production and trade were below expectations.
  • Bank of Valletta plc lost 3.1% to the €1.55 level across 66,782 shares. Last week, 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 noted the increased reputational and operational risks for the Maltese banking sector in general, whilst for BOV it highlighted the risks in relation to the case of the Deiulemar Trust. On the other hand, S&P acclaimed BOV’s resilient profitability and contained credit losses.
  • Within the same sector, HSBC Bank Malta plc shed 1.1% to the €1.87 level on nine deals totalling 10,460 shares. Yesterday, 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.
  • The other negative performing equity today was Malita Investments plc which dropped by 1.7% to the €0.87 level on just 9,200 shares. The company is due to publish its interim financial results on 10 August.
  • On the other hand, MIDI plc maintained the €0.478 level across 10,500 shares.
  • Malta International Airport plc held on to its all-time high of €5.70 albeit on just 2,000 shares. Shareholders as at 20 August are entitled to receive a net interim dividend of €0.03 per share.
  • Meanwhile, GO plc recaptured the €3.38 level on trivial volumes. The telecoms operator is also scheduled to issue its interim financial statements on 10 August.