Daily Market Highlights (15.04.2021)

Local equity index eases on subdued activity

 

The MSE Equity Price Index lost 1.5% to 3,873.612 points as the declines in the share prices of BOV, HSBC and FIMBank outweighed the gains in Medserv, BMIT and Tigné Mall whilst IHI, MIA and RS2 closed the day unchanged. Trading activity was lacklustre as only €0.08 million worth of shares changed hands. Download today’s Equity Market Summary.

Bank of Valletta plc retracted by 2.2% back to the €0.90 level across 14,819 shares.

Within the same sector, HSBC Bank Malta plc drifted 7.8% lower to €0.83 albeit on just 2,240 shares.

Low trading activity also took place in the equities of FIMBank plc, BMIT Technologies plc and Tigné Mall plc. FIMBank shed 17.6% to USD0.31 whilst BMIT and Tigné Mall gained 2% and 1.4% to €0.52 and €0.73 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.

Medserv plc rallied 7.2% to a three-month high of €0.74 across 24,000 shares. On Monday, Medserv announced that it entered into a conditional agreement for a merger with Regis Holdings Limited. The transaction will be done 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.

Meanwhile, a single deal of 4,000 shares left the equity of RS2 Software plc at the €1.79 level. Tomorrow is the closing day for the offer of up to 28.6 million new preference shares at an offer price of €1.75 per preference share.

International Hotel Investments plc (23,276 shares) and Malta International Airport plc (3,482 shares) stayed at €0.58 and €6.15 respectively. Yesterday, Malta Air (which is a subsidiary of Ryanair) announced five new summer routes for Malta. As a result, the airline will have a total of 57 routes (19 of which will be with the UK) as Malta will be one of Ryanair’s top 10 destinations this summer. In addition, Malta Air is expected to increase the number of aircrafts based in Malta from 6 to 10 by 2022.

The RF MGS Index edged 0.25% lower to 1,112.031 points as Eurozone sovereign bond yields trended higher after European Commission President Ursula von der Leyen announced that the EU will get an extra 50 million Pfizer-BioNTech COVID-19 vaccines. Elsewhere in the US, the Federal Reserve published a survey of current economic conditions (the Beige Book) wherein it showed encouraging underlying trends particularly due to increased consumer spending and a rise in inflation mainly attributed to higher input costs. Economic activity is also being boosted by further easing of restrictions, increased vaccinations, as well as strong fiscal stimulus. The Federal Reserve survey also reflected improved employment expectations and increases in wages.

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