RS2 and Crimsonwing edge lower from recent highs

During the final trading session of this shortened week, the share prices of both RS2 Software plc and Crimsonwing plc eased below their all-time highs registered in the earlier part of the week.

Following last Wednesday’s 25% jump to a new record level of €1.75, the equity of RS2 Software plc initially opened today’s session unchanged at €1.75 before easing by 1.1% to close at €1.73 on total activity of 21,997 shares. Despite this minimal setback today, RS2 is the outperformer this week with an increase of 28.2%. The surge in the share price materialised after the publication of the record interim profits on Tuesday evening. The RS2 Group registered a record net profit of €3.7 million as it accounted for part of the recently announced licence agreement with a leading European bank worth GBP8.5 million. The results also included the initial contribution from the newly set up subsidiary, RS2 Smart Processing Ltd which generated €0.38 million in revenues between April and June. In the commentary, the Directors noted that the Group is in discussions for further licence sales and processing services.

Likewise, Crimsonwing plc eased 1.3% to a close of €0.74 on volumes of 13,500 shares. Earlier this week the share price of Crimsonwing advanced to yet another record level of €0.75.

The equities of the two large banks experienced low volumes today. HSBC Bank Malta plc maintained the €2.69 level on activity of only 1,850 shares with Bank of Valletta plc easing by 0.4% to €2.41 on volumes of 3,000 shares.

Also in the banking sector, Lombard Bank Malta plc gained 0.5% to €1.91 on a single trade of 7,257 shares ahead of the interim results publication on Thursday 22 August. Meanwhile, FIMBank plc held on to the US$0.951 level also on low volumes of 3,000 shares following the announcement of the US$6.98 million loss registered during the first six months of 2013 largely due to impairments in the Group’s banking book and adverse movements in the forfaiting and investment books.

The share price of Malta International Airport plc closed below the €2.00 level for the first time in 3 months with Malita Investments plc easing minimally lower to €0.524 on the last day for the entitlement to the gross interim dividend of €0.01476 per share.

The only other active equity was Simonds Farsons Cisk plc with a 1.8% decline to €2.75 on low volumes of 500 shares. The company is expected to publish its July interim results by the end of September.

On the bond market, the Rizzo Farrugia MGS Index dropped for the fifth successive session as Eurozone yields continued to edge up. An improved economic outlook for the euro zone prompted investors to dump safe-haven German bunds, pushing yields to as high as 1.906% on Thursday – the highest since April 2012. Yields have since eased slightly but the Central Bank of Malta stockbroker priced most MGS’s lower today.

Also on the bond market, last Wednesday, Medserv plc announced that the MFSA approved its €20 million debt issuance programme which is secured and guaranteed. The announcement indicates that the prospectus will be published in the coming days.