Daily Market Highlights

December 1, 2020

MSE Equity Price Index posts sharpest upsurge in 18 years

 

The MSE Equity Price Index rallied almost 6% to a four-month high of 3,926.125 points as several equities recorded strong gains reflecting renewed positive sentiment among local investors. Twelve shares trended higher including the seven largest companies by market value – namely, MIA, BOV, IHI, RS2, HSBC, GO and Farsons. Meanwhile, PG, MaltaPost and Harvest closed the day unchanged as overall trading activity improved further to €0.28 million. Download today’s Equity Market Summary.

International Hotel Investments plc jumped 20% to a nine-month high of €0.75 across 13,250 shares. IHI’s share price climbed 50% over the past four weeks. As a result, IHI overtook RS2 as the third largest company listed on the local Borza.

RS2 Software plc added 2% to regain the €2.04 level albeit on shallow volumes. During the EGM which is scheduled to be held on 15 December, RS2 shareholders will be asked to consider a number of changes to the company’s Memorandum of Association. These changes are aimed at enabling and empowering RS2 to implement its objectives and expansion plans including tapping opportunities within the Merchant Services segment. Furthermore, RS2 is seeking to restructure its share capital. Thus, following regulatory approval, RS2 intends to issue new preference shares which will be listed on the Official List of the MSE.

In the retail banking sector, HSBC Bank Malta plc (23,327 shares), Bank of Valletta plc (11,000 shares) and Lombard Bank Malta plc (4,022 shares) all recorded strong gains today. HSBC advanced 11.3% to a four-month high of €0.89 and BOV added 2.1% also to a four-month high of €0.96. Lombard added 4.2% to recapture the €2.00 level.

The trade finance specialist FIMBank plc climbed 6.7% to the USD0.32 level on a total of 51,939 shares.

Malta International Airport plc extended its recent rally with a further uplift of 6.8% to a nine-month high of €6.25 across 13,437 shares.

Four deals totalling 8,000 shares lifted the share price of GO plc 1.3% higher to the €3.04 level.

Simonds Farsons Cisk plc added 10.3% to regain the €8.00 level on 1,500 shares.

BMIT Technologies plc edged 0.8% higher to the €0.48 level across 59,060 shares. Today, BMIT issued an announcement providing information on its financial performance during the nine-month period ended 30 September 2020 and the company’s future prospects. BMIT explained that despite the current unprecedented and challenging times due to the COVID-19 pandemic, it remains resilient and has continued to produce good results. In fact, as at the end of Q3 2020, BMIT generated revenues of €17.9 million (+6.1% over the comparative period last year) whilst EBITDA amounted to €7.9 million representing an increase of 4% over 2019. At the time of the IPO in early 2019, BMIT had projected that its revenues for the 2020 financial year would amount to €24.6 million whilst EBITDA was estimated at €11.4 million. BMIT also noted that although it maintains a strong cash position, all major investments are being re-evaluated from a strategic perspective in view of the realities brought about by the pandemic. Nonetheless, several consolidation and growth opportunities are being explored with a view of achieving further growth in the future. Such initiatives include the consideration of deployment of new products and services, including a further diversification of the company’s solutions portfolio, as well as assessing the possibility of tapping into new markets.

MIDI plc was the best performing equity today as it rallied over 22% to an over seven-month high of €0.44 on volumes totalling 46,000 shares.

Within the same segment, Malta Properties Company plc moved 1.6% higher back to the €0.50 level across 50,000 shares.

Meanwhile, PG plc retained the €1.90 level on volumes of 10,400 shares. The company’s Board of Directors is scheduled to meet on 14 December to consider and, if deemed fit, approve the interim financial statements for the six-month period ended 31 October 2020. Shareholders as at close of trading today will be receiving a net dividend of €0.0185185 per share.

MaltaPost plc (7,145 shares) and Harvest Technology plc (1,369 shares) traded flat at €1.10 and €1.46 respectively.

Yesterday, Plaza Centres plc announced that it will be offering its shareholders the opportunity to tender their shares to the company (up to 750,000 shares), if they so desire, at any price within a range of €0.90 to €0.95 per share. Plaza Centres will be accepting tenders from tomorrow to Friday 4 December. Any shares tendered will be traded on the MSE on Wednesday 9 December. The equity remained inactive today.

The RF MGS Index trended lower for the first time in four days as it eased by a minimal 0.1% to 1,126.348 points. Economic data in Europe was mixed as trends in manufacturing among the four largest economies (namely Germany, France, Italy and Spain) reflected contrasting developments. Elsewhere in China, manufacturing PMI rose to the highest level in more than three years and also recorded the ninth consecutive reading that indicates expansion.