Daily Market Highlights (13.05.2021)

GO announces new €60 million bond issue


The MSE Equity Price Index rose by a further 0.24% to 4,027.446 points as the gains in BOV, BMIT and Plaza outweighed the declines in MIDI and Harvest. Meanwhile, HSBC and GO closed unchanged as overall trading activity improved to €0.15 million. Download today’s Equity Market Summary.

Bank of Valletta plc edged 1.7% higher to the €0.915 level as 21,069 shares changed hands.

In the property sector, Plaza Centres plc advanced by 2.3% to the €0.90 level across 3,750 shares whilst MIDI plc shed 1.6% to the €0.36 level on heightened activity of 162,910 shares.

A single trade of 53,800 shares lifted BMIT Technologies plc 2% higher as it regained the €0.50 level. Today, BMIT published a quarterly update providing information about its performance in Q1 2021 when compared to the same period in 2020. During this period revenues surged by 13% to €6.6 million with revenue from cloud and connectivity services continuing to grow steadily. Meanwhile, EBITDA surged by around 20% to just below €3 million. In conclusion, BMIT stated that whilst the economic recovery post pandemic (both locally and globally) remains uncertain, the results obtained in Q1 2021 are encouraging and the company remains cautiously optimistic for the rest of the year.

Also in the technology sector, Harvest Technology plc lost 1.3% as it retraced back to the €1.52 level across a single trade of 20,000 shares.

Elsewhere, GO plc closed flat at the €3.54 level as 671 shares changed hands. Today, GO announced that it submitted an application with the Listing Authority requesting the approval of a prospectus in relation to a proposed €60 million unsecured bond issue carrying a coupon of 3.5%. GO also added that a portion of the new bonds will be available for subscription by shareholders as at close of trading on Wednesday 19 May 2021, as well as employees on a preferential basis.

Elsewhere, HSBC Bank Malta plc traded unchanged at the €0.81 level across 14,483 shares.

The RF MGS Index drifted lower for the eighth time in the past 10 sessions, as it dropped by 0.21% to 1,102.006 points. Today, Primary Consumer Sentiment Indices in Germany, France, and Italy all increased from last month’s figures, reaffirming the signs of an economic recovery. Similarly in the US, data showed that producer prices rose higher than expected, resulting in further expectations that the Federal Reserve shall increase interest rates sooner than previously anticipated, in order for it to address the rising inflation figures. Furthermore, the US unemployment rate fell below estimates resulting in optimism for economic growth.

Yesterday, Trident Estates plc published its 2020 Annual Report whereby revenue generation remained relatively unchanged at €1.14 million as the company provided discounts and rental abatements to a number of tenants in recognition of the business disruptions caused by the pandemic. Trident’s financial performance was boosted by a fair value gain on investment property of €0.56 million, primarily due to the increase in the fair value of Trident House in Marsa. Overall, after accounting for a tax charge of €0.19 million, the net profit for the year amounted to €0.55 million. In their commentary, the Directors explained that the development of Trident Park is now nearing completion and the first tenants are expected to be welcomed by Q3 of 2021. The Directors also added that 40% of the available space has already been taken up whilst a higher occupancy rate is expected to be reached in the coming months. Meanwhile, in view of the current uncertainty caused by the ‘COVID-19’ pandemic, the Directors resolved not to recommend the payment of a dividend.