Daily Market Highlights (20.12.2021)

MSE Equity Price Index posts 3-day positive streak

 

The MSE Equity Price Index moved higher for the third consecutive trading session as it advanced by 0.23% to 3,806.059 points. The uplifts in the share prices of six equities outweighed the declines in IHI and MIA. Meanwhile, three other companies remained unchanged as trading activity amounted to €0.20 million. Download today’s Equity Market Summary.

HSBC Bank Malta plc added another 1.7% to the €0.90 level across 11 deals totalling 52,525 shares. Last week, HSBC announced that it entered into a 10-year unsecured €60 million loan agreement with HSBC Bank plc to enable the bank meet the interim targets for minimum requirement for own funds and eligible liabilities (‘MREL’). The loan has an option of early repayment and bears interest at a rate equal to 3-months EURIBOR plus a margin of 117 basis point which currently results in an effective rate of around 0.6%.

Also among the large companies by market value, GO plc surged by 3.7% to the €3.38 level on six trades totalling 11,951 shares.

GO’s data centre and managed IT services subsidiary – BMIT Technologies – gained 2.1% to the €0.49 level as 65,070 shares changed hands.

PG plc moved 0.8% higher to the €2.42 level on four trades totalling 10,399 shares. Last week, PG published its half-yearly results covering the six-month period ended 31 October 2021. Total revenues increased by 12.1% to a record (at interim stage) of just under €71 million reflecting the higher level of turnover achieved by both the ‘Supermarkets & Associated Retail Operations’ and the ‘Franchise Operations’. The growth in business also led a surge in net profits to €6.21 million (+20.7%) whilst the company also significantly reduced its net borrowings to less than €1 million. In their commentary, the Directors noted the company’s commitment to additional investments including the possibility of pursuing new growth opportunities in its core line of business. In fact, the company is actively exploring and negotiating a number of potential ventures which, if secured, would contribute to future growth.

Today’s best performing equity was Malta Properties Company plc which advanced by 3.8% to the €0.55 level on a single trade of 5,000 shares.

MaltaPost plc rebounded by 3.4% to the €1.22 level on four deals totalling 26,000 shares. MaltaPost is due to publish is full-year results as at 30 September 2021 today.

International Hotel Investments plc failed to hold on to last Friday’s gain as it retracted by 3.4% back to the €0.57 level across 15,000 shares.

A single trade of 855 shares forced the equity of Malta International Airport plc to move to a fresh one year low of €5.60 (-0.9%).

Bank of Valletta plc stayed at the €0.88 level on a single trade of 10,000 shares.

The ordinary shares of RS2 Software plc remained at the €1.72 level after recovering from an intraday low of €1.70 (-1.2%). A total of 1,500 shares traded.

LifeStar Holding plc remained at the €0.80 level on trivial volumes.

Today, MIDI plc announced that it entered into a non-binding memorandum of understanding with AC Enterprises Limited to explore the possibility of establishing a joint venture with respect to the development of Manoel Island. Discussions are ongoing and may or may not result in a transaction. Moreover, any eventual agreement will be subject to MIDI’s contractual obligations and any necessary regulatory and shareholder approvals in terms of law.

The RF MGS Index opened the week higher with a gain of 0.24% to 1,094.575 points as further pandemic restrictions led to additional downward pressure on eurozone yields. Yesterday, The Netherlands imposed a nationwide lockdown until at least mid-January 2022 amid concerns over the Omicron variant. Today, the European medicines regulator approved a covid vaccine from Novavax while Moderna announced that a third dose of its vaccine provides significant protection against the Omicron variant.

 

This report contains public information only and is not to be construed as investment advice or an offer to buy or sell any securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data.  Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange.

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