Daily Market Highlights (03.04.2020)

Treasury successfully raises €300 million in MGS auction


Following two consecutive sessions of increases, the MSE Equity Price Index slipped back into negative territory today with a 0.46% drop to 3,849.121 points as it was dragged lower by declines in HSBC, Lombard and BMIT which offset the increases in RS2 and Trident. Meanwhile a further three equities ended the day unchanged. Trading activity today slowed down considerably to €0.08 million representing a fresh 2-month low. Download today’s Equity Market Summary.

HSBC Bank Malta plc reversed part of the rebound registered earlier this week, as it slipped by 5% back to the €0.95 level on shallow volumes of 10,500 shares. Yesterday, HSBC Malta announced that following the recommendation made by the European Central Bank for the suspension of dividends, it concluded that it is therefore obliged to delay the payment of the final net dividend of €0.014 per share for the 2019 financial year and also potential future dividends. HSBC Malta also noted that as it has sufficient capital to support the previously announced final net dividend, it will re-examine the situation and will update the market accordingly once this is appropriate to do so, but not before Q4 2020.

Likewise, Lombard Bank Malta plc retreated by 4.8% back to the €2.00 level across two deals totalling 7,515 shares.

A single trade of 200 shares forced the equity of Simonds Farsons Cisk plc 0.5% lower to the €9.20 level for the first time since June 2019.

The other negative performing equity today was BMIT Technologies plc with a 0.8% decline to the €0.49 level on volumes of 28,535 shares.

On the other hand, RS2 Software plc edged higher for the second consecutive session with a further 1.1% increase to regain the €1.92 level albeit on just 1,000 shares.

Similarly, Trident Estates plc edged 5.5% higher to €1.34 on a single deal of 185 shares.

Meanwhile, Bank of Valletta plc ended the day unchanged at the €0.85 level across seven trades totalling 26,015 shares. On Wednesday, BOV explained that in the light of the ‘COVID-19’ pandemic, and following a strong recommendation of the ECB of 27 March 2020 on dividend distributions applicable to all European banks, the bank has decided to keep the initial proposal for distribution of the dividend but make the actual payment conditional on the reassessment of the situation once the uncertainties caused by ‘COVID-19’ disappear, the earliest of which, in line with the ECB’s recommendation, would be 1 October 2020.

Also, Malta International Airport plc maintained the €5.00 level as a further 2,875 shares traded.

Likewise, Malita Investments plc traded flat at the €0.77 level on weak volumes of 5,000 shares.

The RF MGS Index rebounded by 0.17% to 1,127.540 points as eurozone yields eased marginally today. This afternoon, the Treasury of Malta announced that it successfully raised €300 million across the two new Malta Government Stocks on auction today.

Today, Hili Finance plc issued an announcement reassuring its bondholders that it has sufficient resources at its disposal to honour its existing payment obligations, including those relative to the forthcoming interest payment which shall fall due on 24 July 2020.