An eventful day across local equities

 

The MSE Equity Price Index shed 0.87% to 4,815.609 points, largely reflecting the sharp declines in the share prices of IHI, MIA and HSBC which were only partially offset by the gains in five other companies including FIMBank. Trading activity remained buoyant as a total of €0.5 million worth of shares changed hands. Furthermore, the interim reporting season continued with the publication of the financial statements of Malita and BMIT. In addition, MIA published its July traffic results. Download today’s Equity Market Summary.

The most actively traded equity today was PG plc as a total of 86,365 shares (having a market value of €0.14 million) lifted the company’s share price 1.2% higher back to the €1.65 level.

FIMBank plc surged 2.9% to the USD0.71 level across 44,908 shares. The company’s Board of Directors was scheduled to meet today to consider and approve the interim financial statements for the six-month period ended 30 June 2019.

A single deal of 25,000 shares pushed the share price of Medserv plc 1.7% higher to the €1.18 level. The oil and gas logistics company is due to publish its interim financial results on 30 August.

In the property segment, MIDI plc added a further 0.7% to the €0.72 level on a total of 41,600 shares. The company is due to publish its interim results on 21 August.

Similarly, Malta Properties Company plc gained 0.8% to regain the €0.67 level across 86,930 shares. MPC is due to publish its interim financial results on 12 August.

On the other hand, Malita Investments plc eased by 0.6% to the €0.85 level across 28,228 shares. This morning, Malita published its interim financial statements covering the six-month period ended 30 June 2019. The company reported a surge in profits largely on the back of significant gains in the fair value of its investment properties.  The Directors declared an unchanged net interim dividend of €0.00858 per share. This is payable on Friday 6 September 2019 to all shareholders as at close of trading on Monday 19 August 2019.

BMIT Technologies plc published its maiden interim financial statements following the IPO which took place in January 2019. The company reported higher revenues but its performance was slightly dented by higher costs in view of its investments in HR as well as higher professional fees in relation to the listing of its shares on the MSE Regulated Main Market. From a cash perspective, BMIT generated free cash flows of €3.28 million and ended the period under review with a cash balance €2.8 million compared to €0.67 million as at the end of 2018. Although the Directors resolved not to declare an interim dividend, the IPO Prospectus had stated that BMIT is expected to declare a final net dividend per share of €0.0216 per share for the current financial year ending 31 December 2019. Moreover, BMIT had also projected a net dividend per share of €0.024 for the 2020 financial year. The company’s share price ended the day 1% lower at the €0.52 level on a total of 65,800 shares.

Another announcement issued today by Malta International Airport plc with the July traffic results showed a 5.6% increase in passenger movements in July compared to the same month last year. Despite the higher capacity, the seat load factor remained virtually unchanged at 87%. During the first seven months of 2019, MIA welcomed over 4.05 million passengers, representing a 5.9% increase over the same period last year and in line with the full-year forecast provided by MIA at the start of 2019. Last month, the airport operator also reiterated its target of handling 7.2 million passenger movements in 2019 (+5.8%). Notwithstanding the positive news, MIA’s share price tumbled more than 3% back to the €7.50 level albeit on just 1,407 shares. Shareholders as at the close of trading on 19 August will be entitled to receive a net interim dividend of €0.03 per share.

The two largest banks – Bank of Valletta plc and HSBC Bank Malta plc – also trended negatively today. BOV moved back to its near ten-year low of €1.06 (-0.9%) across 67,515 shares whilst HSBC lost 2% to an over fifteen-year low of €1.50 albeit on trivial volumes. Shareholders of HSBC as at 13 August will receive a net interim dividend of €0.0111 per share. The dividend is payable on 18 September.

International Hotel Investments plc entered deeper into ‘correction’ territory as the equity dropped by a further 3.8% to the €0.76 level across 26,245 shares.

Meanwhile, RS2 Software plc (12,500 shares) and Simonds Farsons Cisk plc retained the €1.96 and €10.00 levels respectively.

Santumas Shareholdings plc traded unchanged at the €1.64 level albeit on insignificant volumes.

The RF MGS Index eased by 0.02% to 1,167.063 points as the drops in the prices of Malta Government Stocks (“MGS”) with maturities of up to ten years slightly outweighed the gains at the longer end of the MGS yield curve. International financial markets continued to be characterised by the various uncertainties related to the current trade dispute between the US and China. Meanwhile, in Europe, the European Central Bank (“ECB”) published its periodic Economic Bulletin in which the central bank highlighted the growing risks to the euro zone’s growth outlook amid a weakening manufacturing sector. On the other hand, the ECB noted the positive dynamics underlying employment growth which is likely to continue supporting household income and consumer spending in the months ahead.