Daily Market Highlights (21.07.2021)

Farsons expects strong rebound in profitability


The MSE Equity Price Index eased by 0.27% to 3,856.973 points as the declines in HSBC and RS2 offset the gains in PG and Harvest whilst BOV and BMIT ended the day unchanged. Trading activity remained weak as only €0.05 million worth of shares changed hands. Download today’s Equity Market Summary.

Today’s main highlight was the publication of an updated Financial Analysis Summary by Simonds Farsons Cisk plc. The report provides the forecasts for the current financial year ending 31 January 2022 which show that the Group is expecting a strong rebound in revenue to €91.7 million (+25.6%) which is just 11.3% short of the record turnover figure of €103.5 million achieved in the 2019/20 financial year. Likewise, EBITDA is anticipated to climb to €19.3 million (+29.1%) whilst the Group is projecting a net profit for the year of €9.4 million compared to €3.3 million in 2020/21. In terms of financial position, Farsons is expecting to end the year with a cash balance of €15.3 million whilst total debt is anticipated to contract by 6.1% to €38.9 million. No trading in the shares of Farsons took place today.

HSBC Bank Malta plc was the worst performing equity as it slid by 3.1% to the €0.785 level across 2,717 shares.

The ordinary share price of RS2 Software plc drop by 1.1% to the €1.77 level albeit on trivial volumes.

Low activity also took place in the equity of Harvest Technology plc which added 0.7% to the €1.51 level.

PG plc recaptured the €2.28 level (+0.9%) on a total of 11,687 shares.

Meanwhile, a single deal of 22,000 shares left the equity of BMIT Technologies plc at the €0.49 level.

Similarly, Bank of Valletta plc traded flat at the €0.90 level across 4,222 shares. BOV will be publishing its June 2021 interim financial results on 29 July.

The RF MGS Index registered its fifth consecutive gain with a further uplift of 0.08% to a one-month high of 1,103.925 points as euro zone sovereign bond yields continued to ease. On the economic front, Italy’s industrial sales declined by 1% in May following five consecutive months of growth.