Daily Market Highlights (08.04.2020)

MSE Equity Price Index drops on shallow activity


The MSE Equity Price Index shed 1.8% to 3,768.300 points reflecting the declines in five equities whilst another three equites closed unchanged. Trading activity remained muted as only €0.11 million worth of shares changed hands. Download today’s Equity Markey Summary.

Malta International Airport plc retracted by 4% back to the €4.80 level across 12,875 shares.

Also among the large companies, International Hotel Investments plc plunged nearly 7% to the €0.54 level across five deals totalling 21,475 shares.

GO plc moved 4.8% lower to the €3.60 level (the lowest since late September 2018) albeit on just 2,500 shares.

MaltaPost plc plunged 18.2% to an over seven-year low of €0.90 across 2,200 shares.

In the property segment, MIDI plc dropped 2.6% to a two-year low of €0.37 on a single deal of 5,000 shares.

Conversely, Malta Properties Company plc remained at the €0.49 level across 12,500 shares.

Five deals totalling 14,052 shares left the equity of Bank of Valletta plc at the €0.85 level.

BMIT Technologies plc traded flat at the €0.49 level across 9,000 shares.

Today, Simonds Farsons Cisk plc issued an announcement providing an update on how ‘COVID-19’ is impacting its business and operations. In this respect, Farsons explained that due to the high degree of uncertainty surrounding the potential duration of the current crisis, it is not possible for the company to accurately assess the full extent of the potential impact on revenues and profitability going forward although the impact is expected to be material. Farsons also explained that as part of its mitigation plans, it has already started implementing important measures to address the situation, including strict cost control measures, lower production runs and the deferral of a number of capital expenditure programmes. Farsons concluded by stating that the measures being taken are directed at protecting and preserving the financial strength and integrity of the Group, and in so doing upholding the interests of all its stakeholders.

Yesterday, Medserv plc also issued a similar announcement providing an update on how ‘COVID-19’ is impacting its business and operations. In this respect, Medserv explained that although the ‘COVID-19’ is presenting many operational challenges, all of the Group’s facilities continue to remain operational. Furthermore, the ‘COVID-19’ coupled with the downward pressure on the price of oil are impacting the oil and gas industry in general, particularly exploratory offshore drilling projects. As a result, the majority of offshore drilling exploratory projects have been postponed, including projects being serviced by Medserv. Demand for Medserv’s services to the development and production facilities both offshore and onshore remain ongoing and consistent, particularly in the Middle East. Nonetheless, it is expected that Medserv’s EBITDA for the 2020 financial year will be negatively impacted. Immediate measures are being adopted with the aim of reducing costs and delaying capital expenditure. Moreover, in all countries in which the Group operates, Medserv will benefit from the varying schemes adopted by the respective Governments. The company also confirmed that it has sufficient resources and funds to maintain all its payment obligations as they arise and fall due throughout the course of 2020. Moreover, it noted that the publication of the 2019 audited financial statements will be delayed by a month and will be published by 31 May 2020 in line with a circular recently published by the MFSA.

The RF MGS Index moved lower for the third consecutive day as it slipped by a further 0.21% to 1,122.605 points. Movements in the prices of Malta Government Stocks were particularly adversely impacted by higher Italian bond yields after the Eurogroup failed to reach an agreement on the creation of a common stimulus package to counteract the adverse economic effects of the coronavirus outbreak.