Daily Market Highlights (03.08.2021)

Harvest increases profits on lower revenues


The MSE Equity Price Index increased by 0.43% to 3,859.642 points as the gains in GO, HSBC, and MIDI outweighed the decline in BOV. Meanwhile, Farsons closed unchanged as overall trading activity was muted at just under €0.06 million. Download today’s Equity Market Summary.

Today, Harvest Technology plc published its interim financial results covering the six-month period ended 30 June 2021. Despite a 12.4% reduction in revenues to €7.88 million, Harvest generated higher EBITDA (+3.9% to €2.34 million) and also recorded a better-than-expected net profit of €1.24 million (+3.9%). Shareholders as at close of trading on 12 August 2021 will receive an unchanged interim net dividend of €0.024 per share. The company noted that although it remains confident of achieving its projected financial targets for 2021 including a pre-tax profit of €4 million, its performance in the future could be dented by the lingering effects of the pandemic. No trading took place in the equity of Harvest today.

HSBC Bank Malta plc edged 1.2% higher to the €0.83 level across two trades totalling 1,000 shares. Yesterday, HSBC published its interim financial results covering the six-month period ended 30 June 2021. The Bank reported an improved financial performance boosted by the favourable market movements within its life assurance subsidiary and lower levels of expected credit losses. Overall, HSBC generated a net profit of €11.4 million which translate into a return on equity of 4.8%. In view of the restrictions imposed by the ECB in relation to capital distributions, HSBC did not declare an interim dividend.

Similarly, GO plc gained 1.2% to recapture the €3.40 level across three deals totalling 4,965 shares. GO will be publishing its 2021 interim financial results on Monday 9 August.

MIDI plc surged by 16.3% to €0.40 level albeit on just 12,500 shares.

Meanwhile, Simonds Farsons Cisk plc closed unchanged at the €8.30 level on five trades totalling 2,349 shares, after recovering from an intraday low of €8.05 (-3.0%).

Today’s only negative performing equity, Bank of Valletta plc, moved 0.6% lower to the €0.895 level on a single deal of 16,884 shares.

The RF MGS Index gained 0.12% to a seven-week high at 1,105.822 points. The Eurozone Producer Price Index (‘PPI’) increased by 1.4% in June when compared to the previous month in line with expectations, and 10.2% when compared to June last year. Energy prices remained a leading contributor for the upward price pressures. Elsewhere in the US, the Senate started its voting process on the proposed USD1 trillion bipartisan infrastructure investment bill which is aimed towards improvements to roads, water distribution, and mass-transit systems.