Daily Market Highlights (11.02.2020)

Broad activity across local equities


The MSE Equity Price Index opened the week in negative territory as it shed 0.59% to 4,645.921 points. The decline was largely driven by the drops in BOV, IHI and GO which outweighed the gains in HSBC and two other companies. Meanwhile, several shares ended the day unchanged as trading activity remained relatively subdued and amounted to only €0.18 million. Download a copy of today’s Equity Market Summary.

Bank of Valletta plc lost 2.8% back to the €1.05 level across 3,490 shares.

Among the large companies by market capitalisation, International Hotel Investments plc and GO plc also trended in negative territory today. IHI dropped by 1.8% to the €0.80 level across 34,821 shares whilst three deals totalling 1,300 shares forced the equity of GO to move 0.5% lower to the €4.12 level.

Trident Estates plc was the worst performing equity today as it plunged 4% to the €1.70 level albeit on trivial volumes.

Low trading activity also took place in Malita Investments plc which retreated by 1.1% to the €0.89 level.

Within the same segment, MIDI plc (20,447 shares) and Tigné Mall plc (8,400 shares) closed unchanged at €0.47 and €0.90 respectively.

RS2 Software plc stayed at its all-time high of €2.42 after recovering from an intra-day low of €2.38 (-1.7%). A total of 2,100 shares changed hands. Last week, RS2 announced that it concluded a partnership agreement with MoviiRed in Colombia to offer consumers and merchants direct issuing and acquiring services. In this respect, RS2 explained that this development represents the launch of its new direct acquiring business for the first time anywhere in the world.

Malta International Airport plc and PG plc traded flat at €6.95 and €2.00 respectively on light trading activity. Last Friday, the airport operator published the January 2020 traffic results showing an increase of 14.2% in passenger movements. MIA also added that despite the significant increase of 11.3% in seat capacity, the seat load factor improved by 1.8 percentage points to 71%. The company is due to publish its 2019 full-year financial results on 26 February. The Directors will also consider the payment of a final dividend.

A single deal of 2,549 shares left the equity of Simonds Farsons Cisk plc at the €11.00 level.

Harvest Technology plc opened at the share offer price of €1.50 before closing the day unchanged at the €1.48 level on a total of 9,136 shares.

Meanwhile, HSBC Bank Malta plc rebounded by 1% to regain the €1.05 level across 65,000 shares. The bank is due to publish its 2019 full-year financial results on 18 February. The Directors will also consider recommending a final dividend for approval at the AGM scheduled to be held on 8 April.

The other positive performing equites today were GlobalCapital plc and Loqus Holdings plc which climbed significantly higher to €0.30 and €0.075 respectively albeit on trivial volumes.

The RF MGS Index crept marginally higher to 1,151.330 points as the gains in the prices of long-term MGS outweighed the declines in short and medium term MGS. Most of investors’ attention across international bond markets was directed towards the Congressional testimony from the Chairman of the US Federal Reserve. In this respect, the Chairman signalled out the coronavirus outbreak in China as among the major risks to global economic growth. Mr Powell also explained that “the current stance of monetary policy will support continued economic growth, a strong labour market and inflation returning to the … 2% objective. As long as incoming information about the economy remains broadly consistent with this outlook, the current stance of monetary policy will likely remain appropriate.”