Daily Market Highlights (20.02.2019)

  • The MSE Equity Price Index advanced by 0.18% to back above the 4,500 mark as various equities trended higher (including HSBC, Farsons, GO and BMIT) whilst only three shares ended the day in negative territory. Meanwhile, another six shares closed unchanged whilst trading volumes improved to €0.78 million from €0.45 million yesterday. Download a copy of today’s Equity Market Summary.
  • The RF MGS Index trended higher for the third consecutive day as it added a further 0.04% to 1,105.074 points. Movements in Malta Government Stock prices were once again mostly influenced by changes in the yields of the two largest euro peripheral countries – namely Spain and Italy – as these crept lower whilst German Bund yields moved in the opposite direction. In the political arena, tensions between the US and Russia escalated after Russian President Vladimir Putin said that testing of new nuclear weapons is now complete and that these can target the US if the latter deploys missiles in Europe close to Russia.
  • Today’s highlight across the local equity market was the publication by Malta International Airport plc of the 2018 full-year financial results. The airport operator generated a record EBITDA of €54.4 million (+12.1%) and a net profit of €30.3 million (+25.6%). The Directors are recommending a 28.6% increase in the final net dividend to €0.09 per share. Coupled with the net interim dividend of €0.03 per share paid in September 2018, the total net dividend for the year amounts to €0.12 per share, representing a 20% increase from the previous comparable period. The final dividend is payable on 29 May to shareholders as at close of trading on 11 April. The company also notified that it will be holding its Annual General Meeting on 15 May. The equity opened at a low of €6.35 today but ended unchanged at the €6.40 level on encouraging volumes totalling 18,316 shares.
  • Bank of Valletta plc maintained the €1.26 level across 110,000 shares. The bank is due to publish its 2018 full-year results on 15 March whilst the Annual General Meeting is scheduled for 9 May.
  • Medserv plc (19,000 shares) and PG plc (25,000 shares) held on to the €1.10 and €1.38 levels respectively.
  • Likewise, Mapfre Middlesea plc and MIDI plc retained the €2.00 and €0.655 levels respectively albeit on light trading volumes.
  • In contrast, BMIT Technologies plc rebounded by 2.8% to the €0.545 level on high activity totalling 427,300 shares.
  • BMIT’s majority shareholder, GO plc, also trended in positive territory today as the equity regained the €4.38 level (+0.5%) albeit on just 1,700 shares. The company is due to publish its 2018 full-year financial results on 8 March.
  • HSBC Bank Malta plc recovered some of yesterday’s sharp loss as the equity rebounded by 1.8% to €1.68 on trivial activity. Yesterday, the bank reported a contraction in profitability for the 2018 financial year, reflecting the unfavourable interest rate scenario, lower profits from the bank’s insurance business as well as the impact of expected credit losses amounting to €3.49 million compared to a reversal of loan impairments of €1.17 million in the previous year. The bank also slashed its final net dividend distribution to €0.012 per share which also takes into consideration new regulatory requirements imposed by the European Central Bank. Looking ahead, HSBC Malta’s CEO Mr Andrew Beane commended the bank’s position to leverage on measured growth whilst retaining its highest global standards of compliance.
  • A single deal of 2,850 shares lifted the share price of Simonds Farsons Cisk plc 1.7% higher to the €8.75 level (the highest since mid-January 2019).
  • In the property segment, Trident Estates plc, Main Street Complex plc and Malta Properties Company plc all posted gains today. Trident surged 2.3% to recapture the €1.35 level on 4,995 shares. Main Street Complex added 1.6% to €0.64 on 27,000 shares whilst MPC gained 0.9% to the €0.555 level across 100,650 shares.
  • Meanwhile, Tigné Mall plc lost 2.1% to the €0.93 level on trivial activity.
  • International Hotel Investments plc retracted by 2.9% from its eight-month high of €0.68 back to the €0.66 level across 148,992 shares.
  • MaltaPost plc eased by 0.8% to €1.27 after partially recovering from an intra-day low of €1.24 (-3.1%). A total of 6,674 shares changed hands.
  • The earnings reporting season is now expected to resume in two weeks’ time with the publication of the 2018 full-year results by Lombard Bank Malta plc on 6 March.