Daily Market Highlights (14.04.2020)

MSE Equity Price Index jumps 3.2%


 Following the Easter recess, the MSE Equity Price Index climbed by 3.2% today to 3,919.593 points on the back of the gains in share prices of BOV, MIA, GO and RS2. Meanwhile, MIDI was the only equity to experience a decline whilst three other equities ended the day unchanged. Trading activity improved to €0.26 million despite technical issues which lead to a late opening of the Borza. Download today’s Equity Market Summary.

In the banking sector, Bank of Valletta plc surged 14.4% to the €1.03 level across 14,370 shares.

Similarly, GO plc jumped 10% to the €3.96 level across 1,900 shares.

Also among the large companies, Malta International Airport rose by 3.3% to the €4.96 level as 3,978 shares changed hands whilst RS2 Software plc recovered from an intra-day low of €1.90 (-1%) to end the day in positive territory as the equity climbed 0.5% to the €1.93 level across 55,000 shares.

Meanwhile, MIDI plc slipped by a further 5.4% to a near 2-year low of €0.35 across 11,000 shares.

BMIT Technologies plc ended the day flat at the €0.49 level across 72,100 shares.

Elsewhere, PG plc retained the €1.69 level as 41,287 shares exchanged hands.

Malita Investments plc remained unchanged at the €0.80 level across 6,000 shares.

The RF MGS Index snapped a four-day losing streak as it rebounded by 0.21% to 1,123.954 points. The spread between the 10-Year German Bund and most other Eurozone yields widened today as the IMF said that most countries should expect their economies to be 5% smaller than planned even after a sharp recovery in 2021.

Last Friday, MIDI plc announced that the ‘COVID-19’ pandemic will significantly impact the company’s operations throughout 2020 especially the sale of the residential units that it currently holds in stock as well as its rental operations. Moreover, MIDI reiterated that delays on different fronts may also be encountered with respect to both the Q3 Residential Block (at Tigne Point) and the Manoel Island development projects. Nonetheless, MIDI plc noted that although 2020 is expected to be a challenging year, it has  sufficient  funds  to meet its obligations as they fall due including the payment of interest which  falls  due  on  the  27  July  2020 with respect to the 4% Secured Bonds maturing in 2026.

Today, United Finance plc announced that the ‘COVID-19’ pandemic is expected to have a significant negative impact on the operations and performance of the United Group throughout 2020. In this respect, a number of cost containment measures have been put in place to mitigate the effects of a drop in revenue and non-contracted capital expenditure plans have also been cancelled. The Group also noted that although 2020 is expected to be a challenging year, United Finance plc has sufficient funds to meet its obligations as they fall due, including the full payment of interest in early November 2020 on the 5.3% bonds maturing in 2023.

AX Group plc explained that its hotel sector, its largest segment, has borne the main brunt of the restrictions taken by local authorities including the suspension of international travel which has and will continue to have, a material impact on the division and the Group. Similarly, the development sector experienced pressure on income from rental of residential and commercial property which, however, is not deemed material. Moreover, the dividend stream from the Group’s investment in the Valletta Cruise Port has been significantly impacted. On the other hand, the construction sector continues to operate and while some restrictions have impacted efficiency, these constraints are not deemed material. Meanwhile, the care sector has also been impacted but the commercial effects are overall positive. Against this background, AX Group has taken appropriate measures to mitigate as much as possible the negative effects from the ‘COVID-19’ on its businesses. Furthermore, AX stated that based on its forecasts, it expects to meet its payment obligations to bondholders.