Daily Market Highlights (01.04.2021)

MIA share price climbs to 6-week high


The MSE Equity Price Index erased the decline recorded on Tuesday as it rebounded by 0.2% to 3,796.770 points. The gains in MIA and Tigné Mall outweighed the marginal drop in BOV whilst BMIT and RS2 closed the day unchanged. Trading activity contracted markedly to just €0.05 million compared to €0.16 million on Tuesday. Following the Easter recess, trading on the Borza will now resume on Tuesday 6 April. Download a copy of today’s Equity Market Summary.

Malta International Airport plc advanced by 1.7% to recapture the €6.10 level across 4,954 shares.

The other positive performing equity today was Tigné Mall plc with a gain of almost 3% to the €0.72 level albeit on just 2,892 shares. Tigné Mall is due to publish its 2020 financial results on 22 April.

Bank of Valletta plc retracted by 0.2% to the €0.87 level on a total of 16,348 shares. On Tuesday, BOV reported a significant drop in profitability in 2020 as its financial performance was hugely impacted by the adverse interest rate scenario, the developments related to COVID-19, as well as the costs associated with the ‘Transformation Programme’. In line with the recommendations of regulatory authorities, BOV decided not to declare a dividend for the 2020 financial year.

Meanwhile, a single deal of 4,000 shares left the equity of BMIT Technologies plc at the €0.53 level. Shareholders as at close of trading on 22 April will be entitled to receive a final net dividend of €0.02922 per share.

Also in the technology segment, RS2 Software plc traded flat at the €1.80 level across 1,369 shares. On Tuesday, RS2 announced that it applied and obtained authorisation for the publication of a Supplement to the Prospectus issued in respect of an offer of up to 28,571,400 preference shares at an offer price of €1.75 per preference share. The Supplement states that in the event that the offer is not fully subscribed for, RS2 will now proceed with the allotment and listing of the preference shares subscribed for. Moreover, the offer period has been extended until 16 April 2021.

Grand Harbour Marina plc published its results for 2020. The company recorded improved performance in Malta but this was overshadowed by the loss incurred by the equity-accounted investee in Turkey due to the impact of COVID-19 on landside revenues as well as the sharp drop of the Turkish Lira against the euro currency. Commenting on the outlook, GHM explained that the pandemic is expected to continue impacting the more lucrative parts of its business. Nonetheless, the company reiterated that it has sufficient resources to meet all its payment and debt obligations.

On Tuesday, Plaza Centres plc announced that it is extending its bond repurchase programme until 20 June 2021. As a result, Plaza will stand in the market for buying back the balance of €1.22 million (nominal) at a fixed price of 104.50% per bond.

Following the decline of 0.43% on Tuesday which was the sharpest in over four months, the RF MGS Index rebounded by 0.08% to 1,116.766 points as the benchmark 10-year German Bund yield trended lower despite new plans in the US by the Biden administration to spend USD2 trillion on improving the country’s vast infrastructure. The significant fiscal stimulus will be partly funded by higher corporate taxes whilst new measures will also be undertaken to strengthen the country’s commitment against climate change.