Daily Market Highlights (21.12.2021)

MSE Equity Price Index reaches 4-week high

 

The MSE Equity Price Index increased by a further 0.36% to the highest level in four weeks at 3,819.672 points as the gains in HSBC, MIDI, Mapfre and Harvest outweighed the declines in BMIT and MPC. Meanwhile, three other companies remained unchanged as trading activity amounted to €0.16 million. Download today’s Equity Market Summary.

HSBC Bank Malta plc extended its recent positive run and added another 2.2% to a 10-month high of €0.92 across 5 deals totalling 15,605 shares.

Today’s best performing equity was MIDI plc which surged by 8% to a near 3-month high of €0.43 across six trades totalling 81,500 shares. Yesterday, MIDI 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. The company explains that while discussions are still ongoing, any eventual agreement will be subject to MIDI’s contractual obligations and any necessary regulatory and shareholder approvals in terms of law.

Mapfre Middlesea plc moved 0.9% higher to the €2.20 level as 10,627 shares changed hands.

Harvest Technology plc gained 3.6% to the €1.45 level on a single deal of 4,729 shares.

Also in the IT services sector, BMIT Technologies eased by 0.8% to the €0.486 level on two trades totalling 43,500 shares.

Malta Properties Company plc offset all of yesterday’s gains as it dropped by 3.6% back to the €0.53 level, albeit on trivial volumes.

Within the same sector, VBL plc remained at the €0.30 level on two trades totalling 6,600 shares.

Bank of Valletta plc stayed at the €0.88 level after recovering from an intraday low of €0.85 (-3.4%) on activity totalling 54,350 shares.

The ordinary shares of RS2 Software plc traded flat at the €1.72 level as 7,700 shares changed hands. Today, RS2 provided an update on the Group’s performance in 2021 and the expectations for the 2022 financial year. RS2 incurred a delay in the launch of the ISO business (Independent Sales Organisation that sells payment services to the Merchant) in the US and also postponed the launch of the merchant acquiring service. Both projects are expected to commence in the first quarter of 2022. Despite these delays, RS2 met all other projected revenues and is expecting a respectable profit for 2021 which exceeds projections published in the prospectus earlier this year. Furthermore, RS2 explained that during 2022 it will continue with its growth strategy that includes the launch of several new products for the Group, including Merchant reconciliation modules, ELO payment methods (a Brazilian card scheme), and e-Commerce gateways.

Yesterday, MaltaPost plc published its annual financial report for the financial year ended 30 September 2021. MaltaPost registered an 11.3% increase in turnover to €37.9 million as all revenue streams improved over the previous financial year. Similarly, operating costs increased by 12.9% to €35.8 million reflecting higher international postal tariffs payable to postal operators at destination, air freight costs, and salaries. Overall, MaltaPost reported a net profit of €1.40 million, which is 20.7% lower than the €1.76 million figure reported in the previous financial year. The Directors recommended an unchanged final net dividend of €0.04 per share to all shareholders as at close of trading on Thursday 13 January 2022. The dividend will be paid on 16 March 2022 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on 16 February 2022.

The RF MGS Index moved 0.21% lower to 1,092.244 points as various eurozone yields moved higher, with the German 10-year Bund reaching a three-week high. The eurozone consumer confidence reached a 9-month low following increases in COVID-19 cases and potential tighter restrictions. Today, the French government announced an extension of its pandemic support scheme to help businesses operating in the worst hit sectors.

 

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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