Daily Market Highlights (14.06.2021)

BOV share price surges to 2021 high


The MSE Equity Price Index posted a three-day winning streak after it rose by 0.62% to 4,034.015 points as the gains in BOV outweighed the decline in MIA. Meanwhile, HSBC, BMIT, PG, RS2 and Mapfre all closed unchanged as overall trading activity improved to just below €0.1 million. Download today’s Equity Market Summary.

Bank of Valletta plc jumped to a 5½-month high as it climbed by 5.4% to the €0.97 level across 16,831 shares.

In the same sector, HSBC Bank Malta plc traded flat at the €0.825 level across a single deal of 4,000 shares. Last Friday, HSBC announced that it will be rolling out a new strategic initiative related primarily to the transformation and automation of certain areas within the bank, and also to a planned transfer of a number of employees and activities to a local service provider. To achieve this, the bank is proposing the launch of two Voluntary Redundancy Schemes that will impact a limited number of areas in the bank, subject to MUBE (Malta Union of Bank Employees) agreement. The bank noted that the restructuring costs to deliver these changes will be booked in the 2021 financial results and that the amount will depend on the number of applications received.

Meanwhile, Mapfre Middlesea plc remained at the €2.18 level as 532 shares changed hands.

PG plc closed unchanged at the €2.32 level across 1,500 shares.

Similarly, in the technology sector, RS2 Software plc remained rooted to the €1.95 level as 12,700 shares changed hands whilst BMIT Technologies plc retained the €0.50 level across 50,000 shares.

Elsewhere, Malta International Airport plc eased by 0.8% to the €6.35 level as 3,275 shares changed hands. Last Friday, the airport operator published its traffic results for the month of May whereby it revealed that it registered 75,420 passenger movements which translates into a drop of 88.8% compared to the same month in 2019. Nonetheless, the level of passenger movements marks a slight improvement over the first four months of 2021 during which monthly passenger movements consistently remained below the 40,000 mark. The seat load factor during May stood at 62%. MIA noted that it expects seat capacity deployed by airlines in June to increase by more than double when compared to May, as passenger demand is expected to gradually start recovering.

The RF MGS Index traded higher for the fifth consecutive session, gaining another 0.04% to 1,107.849 points. Following last week’s decision by the European Central Bank to keep key interest rates unchanged, this week’s focus shifts on to the US Federal Reserve’s monetary policy meeting which is scheduled for Wednesday. In the US, the Core Personal Consumption Expenditures (PCE) Price Index rose 3.8% in May when compared to the same period in 2020, the largest gain in three decades. Meanwhile, Eurozone Industrial Production advanced by 0.8 % in April, exceeding the forecasted of 0.4% increase.