Daily Market Highlights (04.06.2021)

MSE Equity Price Index posts 3-day winning streak


The MSE Equity Price Index continued to recover from Tuesday’s near 6-week low as it advanced by a further 0.39% to 3,992.451 points. The index was lifted by the gains in HSBC, MPC and Trident whilst BOV, GO, Lombard and MIA all closed unchanged as overall trading activity amounted to €0.11 million. Download today’s Equity Market Summary.

Bank of Valletta plc closed flat at the €0.90 level across 88,734 shares as it accounted for just over 70% of today’s total value traded.

In the same sector, HSBC Bank Malta plc surged by nearly 5% as it returned to the €0.85 level across 12,855 shares whilst Lombard Bank Malta plc remained at a 6-week low of €1.96 on low volumes of 2,455 shares.

Also among the large equities by market cap, Malta International Airport plc remained at the €6.40 level across a single deal of 1,000 shares. Yesterday, it was revealed that Malta failed to make it onto the UK’s travel green list when the latest update was issued. The decision comes as a blow to the Maltese tourism sector given that UK accounted for the largest number of passenger movements prior to the pandemic.

In the property sector, Trident Estates plc rebounded by 1.4% to the €1.50 level across a single deal of 1,00 shares. Meanwhile, Malta Properties Company plc edged 0.9% higher across trivial volumes. 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 traded unchanged at the €3.40 level as 2,500 shares changed hands.

Today, the RF MGS Index moved marginally 0.02% lower to 1,104.313 points. Retail sales across the Eurozone fell more than expected in April resulting in a 3.1% decrease when compared to the previous month. The reduction was primarily attributed to lower sales of non-food products. Elsewhere in the US, President Joe Biden is considering withdrawing his earlier proposal to raise the main corporate tax rate from 21% to 28% if consensus is found to raise the minimum corporate tax rate from 10.5% to 15%. The additional funding envisaged from any of these tax reforms is aimed to finance extensive infrastructure investments aimed to improve efficiency and reduce inequalities.

Yesterday, LifeStar Holding plc announced the basis of acceptance in relation to the offer of shares and issuance of a subordinated bond. With respect to the offer for sale of 18,518,519 ordinary shares in its subsidiary company, LifeStar Insurance plc (‘LSI’) at an offer price of €0.54 per share and the offer of 6,570,000 ordinary shares in LSI by the company to its shareholders in exchange for their ordinary shares in the company at an exchange ratio of 1:1. In this respect, all applications were met in full and the overall total of 16,751,951 shares of LSI are expected to be admitted to the Official List of the Malta Stock Exchange by 10 June 2021 and trading may commence by 11 June 2021. Moreover, with respect to the issue of €10 million 4% unsecured subordinated bonds due 2026-2031, applications for a total of €2,431,300 were received and were met in full. The bonds are expected to be admitted to the Official List of the Malta Stock Exchange by 10 June 2021 and trading may commence by 11 June 2021.

The proceeds from the aforementioned share offer and subordinated bond issue will be used by the company to partially fund the repayment in full of the €10 million 5.00% unsecured bonds which matured yesterday. In fact, the company explained that it has commenced the process for the repayment of the bonds and that repayment is expected to be finalised by Wednesday 9 June in accordance with the terms and conditions of the 2016 bond prospectus.