Daily Market Highlights (03.02.2020)

Largest caps drive the MSE Equity Price Index lower


The MSE Equity Price Index eased by 0.21% to 4,650.055 points, largely reflecting the drops in MIA, BOV and IHI which outweighed the gains in GO and Lombard. Meanwhile, three other companies closed the day unchanged as trading activity contracted to €0.19 million. Download today’s Equity Market Summary.

Malta International Airport plc retracted by 0.7% back to the €6.85 level across 3,000 shares. Last week, the airport operator announced that it is expecting an increase of between 2% and 3% in passenger movements in 2020 to a new record of 7.5 million passengers (compared to 7.31 million in 2019). Furthermore, MIA also unveiled its long-term vision for the airport, revealing details of an investment of circa €100 million in a terminal expansion.

Bank of Valletta plc also trended lower with a drop of 0.9% to the €1.07 level albeit on just 3,850 shares.

Among the large caps, International Hotel Investments plc shed 1.2% to close the day at the €0.80 level on two deals totalling 32,734 shares.

The other negative performing equities today were Harvest Technology plc and Santumas Shareholdings plc which closed at €1.48 (-1.3%) and €1.40 (-0.7%) respectively on thin volumes.

Low trading activity also took place in the equity of Lombard Bank Malta plc which surged by 4.6% to recapture the €2.28 level.

Two deals totalling 2,600 shares lifted the equity of GO plc 0.5% higher to the €4.16 level after failing to hold on to an intra-day high of €4.20 (+1.4%).

Meanwhile, BMIT Technologies plc continued to trade within a tight range as the equity remained at the €0.52 level across 19,400 shares.

HSBC Bank Malta plc closed unchanged at its multi-year low of €1.05 after touching an intra-day high of €1.08 on activity totalling 60,169 shares. HSBC is due to publish its 2019 full-year financial results on 18 February. The Directors will also consider recommending a final dividend for approval at the AGM scheduled to be held on 8 April.

RS2 Software plc held on to the €2.34 level after partially retreating from its all-time high of €2.36. A total of 19,850 shares changed hands. Last Friday, RS2 published a presentation in relation to the 100% acquisition of Kalicom. In this respect, RS2 showed that the acquisition represents an attractive inorganic growth opportunity as it enables RS2 a quick penetration into the direct acquiring market as well as a complete POS service offering and distribution capability. The acquisition also presents RS2 with a number of cross-selling opportunities within the under-served German market as well as prospects for significant value creation through integrated group capabilities. With respect to the transaction details, RS2 disclosed that the total consideration for the acquisition amounted to €2.5 million. The company also confirmed that the acquisition will be funded through bank borrowings. RS2 also added that the amount paid for Kalicom is expected to match the EBITDA contributions that Kalicom is projected to generate within the next five years.

Today, Malta Properties Company plc announced that its Board of Directors is scheduled to meet on Wednesday 19 February to consider and approve the financial statements for the year ended 31 December 2019. The Board will also be considering the recommendation of a dividend.

The RF MGS Index added 0.12% to a near three-month high of 1,154.863 points as fears over the negative impact of coronavirus on world economic growth continued to dominate international financial markets. On the economic front, manufacturing PMI data across the euro area were positive, reflecting strong rebounds in Germany, France and Italy whilst in Spain, manufacturing activity improved by less than previously anticipated.

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