Daily Market Highlights (30.04.2019)

The MSE Equity Price Index trended higher for the third consecutive day as it added a further 0.21% to 4,715.449 points. Several companies ended the day in positive territory whilst only GO and Mapfre Middlesea posted declines. Trading volumes increased markedly as a total of €0.62 million worth of shares changed hands. Download today’s Equity Market Summary.

The RF MGS Index extended yesterday’s gains as it advanced by a further 0.05% to 1,113.146 points. Prices of Malta Government Stocks trended mostly higher despite a recovery in euro sovereign bond yields which, in turn, reflected renewed optimism on the current trade dispute between the US and China. Furthermore, bond yields were boosted by new economic data published today showing a rosier picture of the euro economy when compared to the start of the year, particularly on the back of a better-than-expected GDP growth rate in Q1 2019 as well as a further reduction in the unemployment rate to a new multi-year low of 7.7%. On the other hand, inflationary data disappointed expectations. Meanwhile, in the US the Federal Reserve will start its two-day monetary policy meeting during which the central bank is expected to maintain interest rates unchanged amid weak inflation dynamics.

RS2 Software plc climbed 6.2% to the €1.55 level (the highest since November 2017) on activity totalling 16,965 shares. Yesterday, RS2 reported a net profit of €4.25 million for the 2018 financial year compared to €0.79 million in 2017, reflecting the company’s further international expansion as well as the recognition of a term licence contract with an option to convert to perpetuity. The Directors are recommending a 1-for-8 bonus share to all shareholders as at close of trading on 15 May 2019. In their commentary, the Directors explained that in 2018, the company continued to build up its managed services arm, expand its client base and service offerings as well as increase its presence in targeted geographic regions (especially in the US). In fact, RS2’s CEO Mr El Haj explained that the company has now built a notable potential client pipeline whilst existing clients are processing more volumes, consolidating their business and expanding into other territories through RS2’s platform. RS2 also unveiled a new business pillar, namely the acquiring of direct merchant. In this respect, the company explained that this new line of business has the potential of generating significant additional revenue streams and also place RS2 at the forefront of the fintech sector where new technologies are emerging. RS2 is also in the process of establishing its own financial institution license in Germany. Meanwhile, the company is also preparing to launch services with its Alliance partner for the travel industry during Q3 2019, starting in Europe and following up in Latin America. Today, RS2 also announced that RS2 Software Inc. (which is the company’s subsidiary in the US with a 64.2% shareholding interest) has concluded a major agreement for managed services with Cross River Bank. The latter is a leading innovator and provider of banking services for financial technology companies.

Simonds Farsons Cisk plc added 2.8% to the €9.25 level (also the highest since November 2017) across 2,160 whilst PG plc jumped 3.2% to a new all-time high of €1.60 on a total of 86,225 shares having a market value of €0.14 million. On 15 May, Farsons is due to publish its results for the financial year ended 31 January 2019.

HSBC Bank Malta plc erased yesterday’s decline as the equity rebounded by 0.6% to the €1.73 level across 4,248 shares.

In the property segment, MIDI plc advanced by 0.8% to the €0.605 level on heightened activity totalling 178,000 shares having a market value of €0.11 million. Last week, MIDI reported record revenues of €52.5 million and a net profit of €11.6 million for the 2018 financial year largely reflecting the delivery a large part of the apartments within the Q2 residential block. Shareholders as at close of trading on 8 May will be entitled to a net dividend per share of €0.008. Looking ahead, the Directors explained the progress being made with respect to the Manoel Island project as well as plans for the development of the last remaining site within Tigné Point.

Malta Properties Company plc regained the €0.60 level (+1.7%) whilst Main Street Complex plc held on to the €0.63 level. Both equities traded on shallow volumes. Shareholders of MPC as at close of trading on 9 May will be entitled to a net dividend of €0.01 per share. The AGM of Main Street Complex will be held on 17 May.

Two deals totalling 29,000 shares left BMIT Technologies plc at the €0.53 level. The company is due to hold its AGM on 27 May.

International Hotel Investments plc opened at a low of €0.725 (-0.7%) before recovering to close the day unchanged at the €0.73 level. A total of 48,791 shares changed hands. The Directors of IHI were due to meet today to consider and approve the company’s financial statements for the year ended 31 December 2018.

Also among the large companies, Bank of Valletta plc retained the €1.325 level across 68,412 shares. Last Friday, BOV announced that it has filed proceedings before the European Court of Human Rights in Strasbourg with a view to safeguard its fundamental right to a fair hearing in the case related to the Deiulemar Group. BOV is due to hold its AGM on 9 May.

Malta International Airport plc stayed at the €6.70 level on activity totalling 14,563 shares. MIA is due to hold its AGM on 15 May.

Meanwhile, GO plc shed 4.9% to the €4.28 level across 17,050 shares. The company is due to hold its AGM on 28 May.

Mapfre Middlesea plc retreated by 0.8% from its three-year high of €2.40 back to the €2.38 level on trivial volumes. Tomorrow, the equity turns ex-dividend.

The Board of Directors of Medserv plc and GlobalCapital plc were also scheduled to meet today to consider and approve the 2018 financial statements. Both equities remained inactive today.