Daily Market Highlights (10.03.2020)

MIA share price continues to slide


The MSE Equity Price Index trended in negative territory for the fifth consecutive trading session with a decline of a further 1.72% to a near fourteen-month low of 4,420.894 points. The drop was mostly driven by the sharp declines in the share prices of MIA (-10.5%) and IHI (-8.1%) which, in aggregate, saw their combined market capitalisation contract by €118 million. On the other hand, only BOV and FIMBank performed positively whilst Mapfre Middlesea ended the day unchanged. Download a copy of today’s Equity Market Summary.

Malta International Airport plc extended yesterday’s decline of almost 6% as the share price tumbled by a further 10.5% to the €5.10 level – the lowest since late July 2018 – on heightened activity totalling 75,994 shares having a market value of €0.41 million. Yesterday, MIA published its February traffic results showing a 17.3% year-on-year growth in passenger movements. MIA’s CEO Mr Alan Borg warned that the spread of the coronavirus is putting aviation and tourism stakeholders across the globe to the test, with MIA envisaging two challenging months ahead as seven airlines have already cancelled 278 flights from Italy and other markets. MIA’s share price is now 36% lower than its all-time high of €7.95 recorded in the second half of May 2019. This has resulted in the company’s market cap to decline by €385.6 million, with most the drop taking place in recent weeks.

International Hotel Investments plc plunged by 8.1% to the €0.68 level after partially recovering from a twelve-month low of €0.665. A total of 48,894 shares changed hands.

Also among the large companies, HSBC Bank Malta plc moved 2.9% lower to a fresh multi-year low of €1.02 across 25,117 shares.

Both GO plc (2,000 shares) and PG plc (6,520 shares) dropped by 0.5% to €4.20 and €1.90 respectively. GO is due to publish its 2019 annual financial results on Thursday 12 March. The Directors will also consider recommending a dividend.

Two deals totalling 7,000 shares forced the equity of BMIT Technologies plc to retreat to the €0.53 level (-3.6%). BMIT is also due to publish its 2019 full-year results on Thursday 12 March. The Directors will also consider recommending a dividend. In the Prospectus dated 7 January 2019, the dividend for the 2019 financial year was estimated at €0.0216 per share.

Simonds Farsons Cisk plc retracted by 0.9% back to the €10.90 level albeit on just 450 shares.

Low trading activity also took place in the equities of Malta Properties Company plc and MIDI plc which lost 1.6% and 0.5% to €0.63 and €0.44 respectively.

Conversely, FIMBank plc surged by 8.6% to regain the USD0.63 level across 69,175 shares. The bank is scheduled to meet today to consider and approve the 2019 financial statements.

Within the same sector, Bank of Valletta plc added 1% to the €1.04 level across 74,123 shares. The Bank is scheduled to publish its 2019 full-year results on Wednesday 18 March.

Meanwhile, BOV’s insurance subsidiary – Mapfre Middlesea plc – stayed at the €2.32 level on three deals totalling 5,444 shares. The company is due to publish its 2019 full-year financial results on Thursday 12 March. The Directors will also consider the recommendation of a dividend.

The RF MGS Index moved lower for the fourth consecutive day as it lost 0.31% (the sharpest drop in over a month) to 1,155.159 points. Volatility across international financial markets remained intense and susceptible to abrupt movements as the global spread of the coronavirus continued to dominate headlines and investor sentiment.