Daily Market Highlights (03.06.2020)

RS2 rallies over 14% on new major processing agreement


The MSE Equity Price Index surged by 2.02% to 4,048.283 points mostly fuelled by the strong gains in RS2, IHI and BOV. On the other hand, MIA and Plaza trended lower whilst a further six companies closed the day unchanged. Trading activity improved markedly to €0.49 million largely on the back of heightened volumes in RS2. Download today’s Equity Market Summary.

RS2 Software plc soared 14.6% to the €2.28 level after partially retreating from a near three-month high of €2.36 (+18.6%) on a total of 87,032 shares having a market value of €0.19 million. Yesterday, RS2 announced that one of its subsidiaries concluded a major processing outsourcing agreement with one of the largest acquirers in the US for a 10-year term with the option to renew. RS2 noted that this latest development is a milestone achievement that falls under its expansion strategy of extending its operations in the US.

Also among the large companies, Bank of Valletta plc regained the €1.04 level (+2.5%) across 90,090 shares.

International Hotel Investments plc added 6.4% to the €0.585 level albeit on just 1,000 shares.

Six deals totalling 40,440 shares lifted the equity of BMIT Technologies plc 2.1% higher to the €0.48 level.

The other positive performing equity today was Simonds Farsons Cisk plc with a gain of 0.6% to the €8.05 level across 4,678 shares.

Malta International Airport plc moved 2.5% lower to the €5.80 level across 13,841 shares. In an interview published yesterday on the local media, MIA’s CEO Mr Alan Borg explained that as the airport operator will soon resume operations on 1 July, it will be introducing social distancing technology alongside a designated surveillance team and also limiting connectivity to direct fights only. Mr Borg also opined that it will take up to three years for the airline industry to completely recover from the ‘COVID-19’ setback.

Plaza Centres plc lost almost 9% to an over five-year low of €0.865 on trivial activity.

Within the same segment, Malta Properties Company plc retained the €0.54 level across 17,120 shares.

Eight deals totalling 8,207 shares left the equity of GO plc at the €3.58 level. On Monday, GO announced that its telecoms subsidiary operating in Cyprus – namely Cablenet Communication Systems Ltd – and in which GO holds a stake of 60.26% is in advanced preparations in respect of a proposed public issue in Malta of 4% unsecured bonds with an aggregate principal amount of up to EUR40 million. Furthermore, GO noted that should Cablenet proceed with the issuance of the bonds, a portion of the bonds will be available for subscription by GO shareholders on a preferential basis.

PG plc opened at its all-time high of €2.06 before ending the day unchanged at the €2.00 level across 12,384 shares.

HSBC Bank Malta plc (€0.99), MaltaPost plc (€1.17) and Santumas Shareholdings plc (€1.49) traded flat on light trading volumes.

The RF MGS Index extended its downward trend as it tumbled by 0.43% to 1,099.597 points – the lowest level since mid-January 2019. The sharpest drops in MGS prices were recorded at the longest end of the yield curve with the 1.5% MGS 2045, which was offered to institutional investors last February, falling to a new record low of 96.76% (compared to the cut-off bid price of 112.71%). Ahead of tomorrow’s much-anticipated ECB monetary policy meeting, economic data in the euro area was encouraging including rebounds in composite PMIs as well as much lower deterioration in the unemployment rate to 7.3% compared to an expected increase to 8.2%.