RS2 and MIA reach new record levels

During this morning’s trading session, the share prices of RS2 Software plc and Malta International Airport plc traded up to new all-time highs.

The equity of RS2 gained 2.9% to €1.07 as the market reacted positively to the two announcements issued yesterday afternoon. In the Interim Statement, RS2 explained that the most important milestone during the year so far was the inauguration of the new subsidiary, RS2 Smart Processing Ltd., and the new contract awarded to this company by a major payment processor in Europe which went live in April 2013. With respect to the licensing and servicing aspect of the business, RS2 re-iterated that the positive outlook has been maintained during the initial months of the year and this is expected to carry on throughout the year with the possibility of concluding further licensing agreements in the coming months. Shortly after the publication of the Interim Statement, RS2 issued a further announcement confirming that it has been made aware of a firm intention by a third party to acquire a substantial shareholding in the company of not less than 10% of the total issued share capital.

Likewise, the share price of MIA advanced by 2.1% to close at the €1.99 level on total activity amounting to 24,646 shares. The market has been reacting positively to the higher passenger numbers registered in recent months and the expectation of another record year for the airport operator. This morning the company issued a press release in conjunction with the commencement of operations by the leading low cost airline in Eastern Europe Wizz Air. MIA’s CEO Mr Markus Klaushofer commented that 2013 is a remarkable year for the airport with five new airlines commencing operations.

Despite the gains in RS2 and MIA, the MSE Share Index declined by a further 0.2% to a 3-week low of 3,330.690 points (-1.2% this week) as the share prices of Bank of Valletta plc, FIMBank plc and Medserv plc dropped.

Bank of Valletta plc failed to hold on to recent gains as the equity shed 1.4% dropping back to the €2.20 level on total activity of 46,667 shares. FIMBank plc eased by 1% to US$1.01 on lower volumes of 18,217 shares. The Bank issued its Interim Statement this morning explaining the importance of the introduction of the new institutional shareholders, the continued strong performance of London Forfaiting Company as well as the challenging conditions being faced some of the joint-venture factoring companies. FIMBank reported that profits are expected to remain unchanged over last year excluding the potential impact from the possible impairments at FactorRus.

Medserv plc’s equity was active for the first time in two weeks with just under 9,800 shares changing hands forcing the price to ease by 1.3% to €3.90. Medserv is among the various other companies which ought to be issuing their Interim Statement by close of business today.

MIDI plc’s equity attracted higher volumes following yesterday’s sharp decline. A total of 200,300 shares traded at €0.25 today.

On the bond market, the Rizzo Farrugia MGS Index edged marginally higher again today to 1,021.299 points following the decline in Eurozone yields in response to the weak economic data across the eurozone. Yesterday afternoon, the Treasury published the prices of the new Malta Government Stocks as follows: (i) 3.0% MGS 2019 (III) FI at 102.25% (Yield to Maturity: 2.611% per annum) and (ii) 4.5% MGS 2028 (II) FI at 101.50% (Yield to Maturity: 4.365% per annum). Retail investors have until next Wednesday to submit applications.