Daily Market Highlights (17.05.2019)

The MSE Equity Price Index retreated by 0.33% to 4,749.118 points today, reflecting the decline in five equities, including GO and BOV, whilst all other actively traded shares closed the day unchanged. Activity was subdued as €0.24 million worth of shares changed hands today as shallow volumes were registered across various equities. Download today’s Equity Market Summary.

The RF MGS Index moved higher for the third consecutive day as it added a further 0.05% to a seventeen-month high of 1,117.640 points. Various prices of Malta Government Stocks reached new all-time highs this week as sovereign bond yields in the euro area tumbled amid a sharp escalation in the current trade dispute between the US and its main trading partners, namely China (in particular), the EU and Japan. Furthermore, investor sentiment across international financial markets was dampened by renewed doubts on the health of global economic growth largely driven by disappointing economic data in China, coupled with fresh geo-political tensions between the US and Iran, as well as renewed uncertainties in UK related to Brexit.

The equity of Malta International Airport plc closed today’s session unchanged at the €6.90 level albeit on trivial volumes. After the close of today’s session MIA issued an update on its performance in Q1 2019. MIA noted that, during the first three months of 2019, revenues increased by 11.7% to €15.6 million whilst EBITDA soared by nearly 20% to €7.23 million. Similarly, profits after tax grew by 9.6% to €2.87 million when compared to the €2.62 million generated in the first three months of 2018. Meanwhile, the announcement also showed that MIA remained debt free as at 31 March 2019. Moreover, it had total cash balances of just under €38 million, representing an increase of €17.6 million over the cash balance held as at the end of 2018. The Directors stated that the favourable start to the summer season, coupled with the projection of further growth in passenger numbers, provide a positive outlook for the rest of 2019.

International Hotel Investments plc held on to its highest level since late November 2015 of €0.80 on activity totalling 51,000 shares. The hotel chain operator is due to hold its AGM on 13 June. Shareholders as at close of trading on 26 June will be entitled to receive a net dividend of €0.02 per share.

Also among the large companies, RS2 Software plc retained the €1.38 level across 29,185 shares. The company is scheduled to hold its AGM on 18 June.

A single deal of just 440 shares left the equity of Mapfre Middlesea plc unchanged at the €2.26 level.

In the property segment, Malta Properties Company plc (136,456 shares) and Tigné Mall plc (30,000 shares) traded flat at the €0.60 and €0.92 levels respectively. Shareholders of Tigné Mall as at close of 18 June will be entitled to receive a final net dividend of €0.0131 per share.

In contrast, Malita Investments plc erased most of yesterday’s gains as the equity slipped by 1.8% back to the €0.84 level across 10,500 shares.

GO plc shed 1.4% to the €4.22 level albeit on light trading volumes. The quadruple play operator is due to hold its AGM on 28 May.

Bank of Valletta plc continued to trade within a tight range as the equity eased by 0.7% to the €1.33 level across 18,933 shares. Shareholders as at close of trading on 6 June will be entitled to a 1-for-10 bonus share. On Wednesday, BOV issued an Interim Directors’ Statement explaining that profits in the first three months of the current financial year are lower than the corresponding period last year due to downward pressure on interest margins, higher costs and lower reversals of impairment provisions. BOV also noted the progress it is making in introducing certain changes to its business model. These are primarily aimed at strengthening its capital position whilst ensuring long term viability.

Within the same sector, Lombard Bank Malta plc shed 1.7% to move back to the €2.32 level on just 1,500 shares.

A single deal of 2,200 shares forced the equity of PG plc to move 1.2% lower from its all-time high of €1.67 back to the €1.65 level.