Daily Market Highlights (02.06.2021)

MSE Equity Price Index snaps six-day losing streak


The MSE Equity Price Index advanced for the first time in seven sessions as it rebounded by 0.76% to 3,940.704 points – albeit across muted volumes of just €0.02 million. Today’s positively performing equities, Farsons, Mapfre and HSBC, outweighed the declines in Harvest and RS2 whilst BMIT, GO, MIA and MPC all closed unchanged. Download today’s Equity Market Summary.

HSBC Bank Malta plc edged 1.3% higher as it regained the €0.81 level across 4,000 shares.

Mapfre Middlesea plc rose by 3.7% to the €2.26 level as 878 shares changed hands.

Following yesterday’s sharp decline, Simonds Farsons Cisk plc rebounded by 8.5% to the €8.95 level across a single trade of trivial volumes.

In the technology sector, RS2 Software plc eased by 0.5% to the €1.98 level as 500 shares changed hands. Similarly, Harvest Technology plc fell by 0.6% to the €1.55 level across a single deal of 1,000 shares. Meanwhile, BMIT Technologies plc traded flat at the €0.49 level across 13,387 shares.

Malta Properties Company plc failed to hold onto an intraday high of €0.555 (+1.8%) as it closed unchanged at the €0.545 level across 6,500 shares. The Board of Directors of MPC is recommending the payment of a net dividend of €0.012 per share (2019: €0.01 per share). Shareholders as at close of trading on Friday 11 June 2021 will be entitled to receive this dividend on Wednesday 21 July 2021 subject to shareholders’ approval during the upcoming Annual General Meeting scheduled to be held remotely on Thursday 15 July 2021.

Elsewhere, GO plc closed unchanged as it retained the €3.40 level across 1,000 shares whilst Malta International Airport plc remained at the €6.40 level across a single trade of insignificant volumes.

Today, United Finance plc announced that given that Debenhams UK ceased its operations and went into liquidation, the winding up of the UK company has resulted in the withdrawal of the franchise internationally. As a result, United Department Stores Limited was forced to also wind up the local outlets of the Debenhams franchise. United Finance plc also noted that it has sufficient financial resources to meet all of its obligations when they fall due and that its Board of Directors will continue taking all measures that it considers appropriate to ensure the long-term sustainability of the company and the group.

Following this announcement, this afternoon Main Street Complex plc informed the market that it has received notice from United Department Stores Limited (which operates the largest store within the complex) for the termination of the existing concession relative to such store and discussions are underway between the respective management teams, with a view to determine the terms, timeline and process of the termination and ensuing vacating of the store. Main Street also highlighted that it has commenced the process for identifying a suitable alternative tenant for the operation of the store in question and further updates to the market will be provided in due course. The Board of Directors of the company also explained that such termination is not expected to have any impact on the financial performance of the company in the current financial year, principally as a result of the terms of the termination provisions contained in the concession agreement.

The RF MGS Index extended yesterday’s gains as it advanced by a further 0.11% to 1,105.457 points as German retail sales dropped more than expected in April, denting hopes for an immediate economic recovery in the process. Meanwhile, the Eurozone Producer Price Index (PPI) gained 1% in April over the previous month. Elsewhere in the UK, the Bank of England announced an unexpected growth in new home loans during the month of April, as the property sector responded positively to tax incentives even though these also led to an 11% increase in house prices over the past year.