Daily Market Highlights (09.08.2021)

HSBC and GO drive the index lower


The MSE Equity Price Index lost 0.28% to 3,869.470 points as the declines in HSBC, GO and Farsons outweighed the gains in four other equities. Meanwhile, overall trading activity was subdued at just under €0.07 million. Download today’s Equity Market Summary.

HSBC Bank Malta plc was today’s worst performing equity as it shed 3.6% to the €0.80 level on three deals totalling 19,966 shares.

Similarly, GO plc shed 1.7% to the €3.40 level on a single trade of 10,000 shares. GO is expected to publish its interim financial results today.

The only other negatively performing equity was Simonds Farsons Cisk plc which eased by 0.6% to the €8.25 level on one trade of 747 shares.

Meanwhile, MIDI plc was today’s best performing equity as it advanced by 3.5% to the €0.414 level on two deals totalling 7,000 shares.

Also in the property segment, Malta Properties Company plc gained 1% to the €0.53 level on one deal of 2,000 shares. Last week, Malta Properties published its interim financial results covering the six-month period ended 30 June 2021. Revenues rose by just under 14% to €1.82 million (H1 2020: €1.6 million) on the back of the increase in rental income which mostly emanated from the contribution of the HSBC Contact Centre located in Swatar which was acquired by MPC in September 2020. MPC’s financial performance was also boosted by a gain on the fair value of investment property which amounted to €1.93 million. Overall, MPC reported a pre-tax profit of €2.9 million compared to €0.91 million in H1 2020. In their commentary, the Directors of MPC explained that the Group expects to make significant progress on its development projects this year. The Zejtun development is expected to be completed toward the end of 2021. MPC has also advanced in the planning application process for its Spencer Hill site in Marsa and the permit is expected to be issued by the end of 2021.

Elsewhere, BMIT Technologies plc edged 0.8% higher to the €0.50 level on two trades totalling 10,000 shares. Last Friday, BMIT Technologies published its interim financial results for the six-month period ended 30 June 2021. Revenues surged by 9.4% to a record (at interim stage) of €12.8 million (H1 2020: €11.7 million). Similarly, EBITDA grew by 11.8% translating into an EBITDA margin of 44.5% (H1 2020: 43.6%). Overall, BMIT reported a 13% increase in pre-tax profits to €4.38 million compared to €3.88 million in H1 2020. The Directors of BMIT explained that they are cautiously optimistic that the company’s current positive performance can be sustained further in the foreseeable future. Moreover, BMIT reiterated its objective for market expansion beyond Malta as the company continues to look out for opportunities to achieve this priority.

Bank of Valletta plc gained 0.6% to the €0.90 level on three deals totalling 3,000 shares.

The RF MGS Index posted its largest daily decline in four weeks as it fell by 0.16% to 1,105.409 points. In its latest rating action for Malta dated 6 August, Moody’s Investors Service (“Moody’s”) affirmed the A2 rating but downgraded the outlook from stable to negative. The key drivers behind the negative outlook were threefold: the significant increase in government debt, the risks related to the post-pandemic recovery, and the recent addition of Malta to the “grey-list” of the Financial Action Task Force (FATF). Elsewhere, oil prices dropped to a three-week low amid concerns that the current surge of Covid-19 infections may reduce the global demand.