Daily Market Highlights (08.03.2019)

  • The MSE Equity Price Index trended higher for the ninth consecutive trading session as it climbed by a further 0.25% to a sixteen-month high of 4,594.494 points. The positive run in GO, coupled with the increases in five other equities, outweighed the declines in five share prices. Most of today’s trading activity took place in HSBC, GO and MPC as volumes in these three shares represented 76% of the total value of equities traded. Download a copy of today’s Equity Market Summary.
  • The RF MGS Index continued to post strong gains as it surged by a further 0.29% to a ten-month high of 1,112.425 points. MGS prices soared and a few stocks even reached new record highs after bond yields in the euro area tumbled to their lowest levels in several months in reaction to yesterday’s conclusions of the ECB monetary policy meeting. The central bank announced new lending facilities to commercial banks and changed its forward guidance related to interest rate hikes. Interest rates are now expected “to remain at their present levels at least through the end of 2019”. The ECB also slashed its GDP growth and inflation projections for the euro area economy.
  • Today’s highlight was the publication by GO plc of the preliminary statement of financial results for the year ended 31 December 2018. GO registered a 6% growth in EBITDA to €69.5 million whilst net profits increased by 13.6% to €16.7 million. Following the successful IPO of BMIT Technologies plc at the start of the year, most of today’s attention was centred on the amount of special interim dividend for the 2019 financial year. In this respect, GO announced a special net dividend of €0.41 per share. Moreover, GO is recommending the payment of an ordinary net dividend of €0.14 per share (+7.7%) for the 2018 financial year bringing the total net dividends to almost €58 million. The cut-off date for both dividends is 24 April. In reaction to the positive announcement by GO, the equity surged 3% to yet another multi-year high of €4.86 on activity totalling 25,329 shares.
  • BMIT Technologies plc added 1% to regain the €0.52 level across 100,183 shares. Yesterday, BMIT issued its preliminary statement of financial results for the year ended 31 December 2018. These showed that the company continued to register strong growth in 2018, in line with the forecasts provided in the IPO prospectus. However, the net profit figure exceeded forecasts by 6.3% on the back of a lower tax charge than previously anticipated.
  • Malta International Airport plc regained its all-time high of €6.60 (+1.5%) on two deals amounting to 1,750 shares. Yesterday, MIA announced that during the month of February, passenger traffic grew by 2.9% compared to the level in February 2018. A total of 359,395 passenger movements were recorded in February 2019.
  • A single deal of just 3,300 shares lifted the equity of Plaza Centres plc 1% higher to the €1.03 level whilst Malta Properties Company plc advanced by 1.8% to €0.58 on activity totalling 198,222 shares. MPC is due to publish its 2018 financial results on 20 March.
  • Malita Investments plc soared 7.3% to €0.96 albeit on trivial activity. Malita is due to publish its 2018 financial statements shortly following a Board of Directors Meeting being held today.
  • In contrast, MIDI plc slipped 2.3% to the €0.63 level across 25,000 shares. Yesterday, MIDI announced that the Board of the Planning Authority approved the revised Masterplan for the development of Manoel Island. The company also reiterated its commitment to the project and expressed its readiness to move on to the next phase, including obtaining full development applications in order to commence the works during the second half of 2019.
  • MaltaPost plc also lost 2.3% to the €1.27 level albeit on insignificant volumes.
  • Both Bank of Valletta plc and HSBC Bank Malta plc finished lower today. BOV eased 0.4% back to the €1.26 level across 26,266 shares whilst HSBC shed 1.2% to €1.63 on heightened activity totalling 123,125 shares. HSBC shareholders as at 14 March will be entitled to a net dividend of €0.012 per share. BOV is expected to publish its 2018 full year results on 15 March.
  • PG plc retreated to the €1.36 level (-0.7%) across 11,339 shares whilst Grand Harbour Marina plc traded flat at €0.70 on shallow volumes.