Daily Market Highlights (12.08.2016)

  • The MSE Share Index extended yesterday’s decline by a further 0.43% to 4,426.111 points on low volumes. The declines in RS2, BOV and Medserv outweighed the marginal gain registered in the equity of Mapfre Middlesea. Week-on-week, the Index posted a gain of 0.22%. Download a copy of today’s Equity Market Summary.
  • On the bond market, the RF MGS Index halted a three-day positive streak as it retreated by 0.02% from its sixteen-month high of yesterday to 1,161.937 points today. Notwithstanding the overall decline in the Index, the indicative bid prices of the Central Bank of Malta for six Malta Government Stocks still reached new highs once again today, including the longer-dated MGSs issued last February which advanced by one basis point to 107.34%. On the economic front, fresh data issued today showed that economic growth in the euro zone fell to its slowest pace since mid-2015, expanding by just 0.3% in the second quarter down from a 0.6% growth rate in the first three month of the year.
  • Three deals totalling 6,581 shares dragged the equity of RS2 Software plc 2.6% lower to a fresh seven-month low of €1.85. Yesterday evening, RS2 published its interim results covering the first six months of 2016 showing a marginal decline in revenue and a 46.8% reduction in post-tax profits attributable to shareholders of €2.5 million. The results were particularly impacted by a surge in the cost base in support of the planned international growth and adverse foreign exchange movements. RS2 explained that the Company’s business continues to be on a strong growth trajectory with a good pipeline of opportunities across all markets and business lines.
  • Also among the large companies, Bank of Valletta plc retracted back to the €2.20 level (-1.1%) across 10,659 shares.
  • The other negative performing equity today was Medserv plc which slipped by 0.6% to the €1.77 level on volumes totalling 14,500 shares. The oil and gas logistics specialist is due to publish its interim results on 26 August.
  • On the other hand, Mapfre Middlesea plc recaptured the €2.05 level (+0.5%) on low volumes.
  • GO plc also registered weak trading activity. A single deal of just 600 shares was executed at the eleven-week high of €2.92. On Tuesday GO revealed that during the first six months of the year it posted a pre-tax profit figure of €17.1 million, which is 31.3% higher than the corresponding period last year. The Company’s results were positively impacted by a gain of €6.1 million arising from the acquisition of a subsidiary. Eliminating this one-off gain, EBITDA still improved by 19% to €29.9 million.
  • FIMBank plc managed to close unchanged at the USD0.98 level despite touching an intra-day low of USD0.959 (-2.1%). A total of 11,430 FIMBank shares changed hands today. On Wednesday, the trade finance specialist revealed its interim results showing a net profit figure of USD1.1 million which contrasts sharply with the USD8.0 million loss suffered during the first six months of 2015. This achievement came on the back of a notable reduction in non-interest expenses and a substantial decrease in impairment allowances. The Directors of FIMBank stated that they remain committed at guiding the Bank in its turnaround strategy.
  • This morning, Tigné Mall plc published its interim results covering the six months ended 30 June 2016, showing a 19.1% jump in post-tax profits to €0.81 million. The Directors declared a net interim dividend of €0.0125 per share, representing a 25.0% increase over last year’s interim dividend. This will be paid on 16 September to all shareholders as at close of trading on 18 August. The Directors also commented that they expect the level of activity registered during the first half of the year to be maintained during the latter half of 2016. The equity remained inactive today.
  • Trading activity resumes on Tuesday 16 August.

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