Daily Market Highlights (12.04.2021)

Medserv aiming to combine with Regis Group


Following last Friday’s rally of 3.5%, the MSE Equity Price Index added a further 1.5% today to 3,975.817 points mostly due to the strong uplift in the share of HSBC whilst all other equities traded either positively or closed unchanged. Download today’s Equity Market Summary. Nonetheless, the main development across the local equity market was the announcement made by Medserv plc in which the company explained that it entered into a conditional agreement for the acquisition of Regis Holdings Limited. The deal will be financed through the issuance of almost 47.9 million new Medserv shares at a price of €0.68 per share (equivalent to €32.6 million), and the combined entity (‘MedservRegis’) will have a global outreach across four continents, comprising a presence in twelve countries and operations out of ten bases. The transaction requires the approval of Medserv shareholders in a general meeting, ahead of which Medserv will issue a circular that will include prospective financial information of MedservRegis for 2021 and 2022. Medserv’s share price ended the day 9.5% higher at the €0.69 level on a total of 20,000 shares.

HSBC Bank Malta plc also performed strongly today as it surged 10.4% to regain the €0.90 level across 18,000 shares.

Also among the large companies by market value, GO plc added 0.5% to an eleven-month high of €3.72 albeit on just 1,440 shares. The net dividend of €0.16 per share is payable on 31 May 2021 to all shareholders as at the close of trading on 23 April 2021 subject to shareholders’ approval at the upcoming AGM scheduled to be held remotely on 27 May.

Simonds Farsons Cisk plc advanced 7.4% to the €8.75 level after partially retreating from a twelve-month high of €9.15. A total of 1,203 shares changed hands.

In the property segment, Trident Estates plc rallied by 6.7% to the €1.60 level across 20,356 shares whilst two deals totalling 20,000 shares lifted the equity of Malita Investments plc 0.6% higher to €0.865.

Meanwhile, Malta International Airport plc (6,020 shares) and BMIT Technologies plc (35,500 shares) traded flat at €6.20 and €0.525 respectively. BMIT shareholders as at close of trading on 22 April will be entitled to receive a final net dividend of €0.02922 per share.

Harvest Technology plc retained the €1.45 level across 26,600 shares.

RS2 Software plc closed flat at the €1.79 level on trivial volumes whilst Mapfre Middlesea plc remained at the €2.36 level across 12,300 shares.

The RF MGS Index opened the week virtually unchanged at 1,116.354 points. Yesterday, Federal Reserve Chair Jerome Powell stated that the US economy is at an “inflection point” due to positive expectations of economic growth and better employment prospects in the months ahead but may also face downside risks if hasty reopening leads to increases in COVID-19 cases. On the political arena, tensions in the Middle East escalated today as an accident at an Iranian uranium enrichment facility was classified as a terrorist attack by the Iranian authorities as they blamed Israel for it. This comes days after Iran revived talks regarding the nuclear deal with a group of world powers, including the US, with Israel opposing the deal.

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