Daily Market Highlights (20.04.2020)

Farsons share price drops to 14-month low


The MSE Equity Price Index dropped 0.42% to 3,925.797 points as the declines in four shares including Farsons, GO and MIA outweighed the gains in three property companies. Meanwhile, six equities closed the day unchanged as trading activity improved notably to €0.38 million. Download today’s Equity Market Summary.

Simonds Farsons Cisk plc lost nearly 6% to the €8.00 level (the lowest since mid-February 2019) on nine deals totalling 11,337 shares.

GO plc slipped by 3.1% to the €3.76 level across 10,298 shares.

Also among the large companies, Malta International Airport plc eased by 0.4% back to the €4.98 level on volumes of 11,018 shares. MIA’s Board of Directors is scheduled to meet on Wednesday to re-consider the proposed final net dividend of €0.10 per share for the 2019 financial year.

A single deal of 23,000 shares forced the equity of BMIT Technologies plc to drop by 0.8% to the €0.488 level. Shareholders as at close of trading on 27 April will receive a net dividend of €0.02157 per share. The dividend is payable on 4 June.

Within the technology sector, RS2 Software plc traded flat at the €1.90 level across 7,000 shares.

The two largest retail banks also ended the day unchanged. Bank of Valletta plc retained the €1.02 level across 20,757 shares whilst three deals totalling 34,290 shares left the equity of HSBC Bank Malta plc at the €0.97 level.

PG plc remained at the €1.80 level on encouraging volumes totalling 47,573 shares.

International Hotel Investments plc and Malita Investments plc traded unchanged at €0.595 and €0.80 respectively on light trading volumes.

Meanwhile, Malta Properties Company plc surged 13.3% to the €0.595 level albeit on just 2,151 shares. Shareholders as at close of trading on 24 April will receive a net dividend of €0.01 per share.

MIDI plc climbed 5.6% to regain the €0.38 level across 18,000 shares. Last Thursday, the Planning Authority approved a new 17-storey residential tower at Tigné Point.

Trident Estates plc moved 2.3% higher to recapture the €1.35 level on a single deal of 9,000 shares.

Today, Tigné Mall plc published the results for the 2019 financial year. The company reported a 7.5% increase in revenues to €7 million whilst operating profits increased by 6.5% to €4.4 million. In view of the ‘COVID-19’ pandemic, the company decided not to pay a dividend to preserve its cash resources.

The RF MGS Index opened the week in negative territory as it slipped by 0.13% to 1,122.408 points. Prices of Malta Government Stocks extended their recent downward trend as credit spreads between Italian and Spanish government bond yields continued to widen over German Bund yields reflecting the higher risks emanating from the ‘COVID-19’ economic and financial fallout. Meanwhile, in its monthly economic update, Germany’s central bank (the ‘Bundesbank’) explained that recovery in Germany is unlikely to be rapid and strong as many of the substantial coronavirus-related restrictions could stay in place for an extended period “until a medical solution such as vaccination is available”. The central bank however also explained that “there is no fear that the German economy will get into a self-reinforcing downward spiral” on the back of the widespread fiscal and monetary stimulus that several European countries are adopting.

Today, GAP Group plc noted that it duly paid the bond interest on the 3.65% secured bonds 2022 on 6 April 2020. With respect to the next bond interest on the 4.25% secured bonds 2023 which is due on 3 October 2020, the company added that it is confident that it will have enough resources to meet all its obligations