Daily Market Highlights (05.11.2021)

Harvest Technology regains the €1.50 IPO level

 

The MSE Equity Price Index eased by a further 0.17% to 3,813.197 points as the declines in Lombard, Farsons and Trident outweighed the gains in MIA and Harvest. Meanwhile, three other equities remained unchanged as overall activity amounted to €0.09 million. Download today’s Equity Market Summary.

Harvest Technology plc gained 2.7% to the €1.50 level on a single trade of 8,916 shares. Yesterday, Harvest announced that it will distribute a net interim dividend of €0.016 per share. Shareholders as at close of trading on Monday 8 November 2021 will be entitled to receive the dividend which will be paid by not later than 26 November 2021. Harvest also provided an update on its financial performance from January to September 2021. In this respect, the company noted that profit before tax amounted to €3.13 million, representing a growth of 9% over the same period in 2020 (€2.88 million). Harvest also reiterated its target of achieving a profit before tax of €4 million for the 2021 financial year which would be in line with the forecast provided in December 2020 but 18% higher than the projections at the time of the IPO in November 2019.

Malta International Airport plc added 0.8% and reached the €6.00 level on five trades totalling 6,300 shares.

Simonds Farsons Cisk plc dropped by 1.8% to the €8.35 level on five trades totalling 1,154 shares.

Similarly, Trident Estates plc ended 0.7% lower at a 12-week low of €1.43 as 500 shares changed hands.

Today’s worst performing equity was Lombard Bank Malta plc which plunged by 7.6% to the €1.83 level on two trades totalling 3,000 shares.

Bank of Valletta plc traded flat at the €0.87 level on four deals totalling 5,800 shares. On Tuesday, BOV issued an Interim Directors’ Statement explaining that in Q3 2021, it posted a pre-tax profit of €20.6 million. As a result, profits before tax for the nine-month period up to September 2021 amounted to €46.5 million compared to €40.6 million in the same period in 2020. BOV noted that the improved profitability over 2020 reflects the gradual recovery from the COVID-19 pandemic. Revenues up to September 2021 amounted to €172.1 million (+4% over the comparable period in 2020), mostly due to improved volumes in the retail sector particularly in home lending, cards, and payments. On the other hand, operating costs increased by just 1%. BOV’s financial performance was also boosted by the contribution from its insurance associates which was significantly higher than the same period in 2020 largely driven by the increase in the market value of investments as well as higher written premia.

 Also in the retail banking sector, HSBC Bank Malta plc remained at the €0.80 level as 2,470 shares changed hands.

A single trade of 3,032 left GO plc at the €3.26 level.

Elsewhere, the ordinary shares of RS2 Software plc stayed at the €1.70 level on one deal of 925 shares.

The RF MGS Index extended its positive run to the fourth consecutive session as it added another 0.28% to a six-week high of 1,089.156 points. Eurozone retail sales in September missed expectations as they fell by 0.3% when compared to the previous month. Similarly, the German industrial production also disappointed with a 1.1% month-on-month drop in September. As such, the German industrial production was at about 9.5% lower than pre-pandemic levels. Elsewhere in the US, employment levels increased more than expected, adding more than half a million jobs in October. The unemployment level declined marginally to 4.6%. Meanwhile, US regulatory bodies are considering the approval of two antiviral pills which have been showing a reduction in COVID-19 hospitalisations and deaths in trials.

Today, the Treasury announced the issue of €180 million in new Malta Government Stocks subject to an overallotment option of an additional sum up to a maximum of €120 million. The three MGS are:

  • The 0.10% MGS 2026 (IV) F.I.
  • The 0.90% MGS 2031 (V)
  • The 2.00% MGS 2051 (II) F.I.

Applications in the form of sealed bids (auction) for amounts of a minimum of €500,000 nominal and in multiples of €100,000 thereafter must be lodged on Friday 12 November.

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