Daily Market Highlights (22.06.2021)

MSE Equity Price Index extends decline on low volumes


The MSE Equity Price Index continued to trend lower as it fell by a further 1.3% to a two-month low of 3,881.320 points. Several equities posted declines whilst PG moved slightly higher and MIA ended unchanged. Trading activity remained subdued as only €0.05 million worth of shares changed hands. Download today’s Equity Market Summary.

MIDI plc was the most actively traded equity today as it slumped 23.3% to a seven-month low of €0.33 across 45,454 shares.

Also in the property segment, Malta Properties Company plc retracted back to the €0.54 level (-1.8%) on a total of 2,240 shares.

Four of the largest companies by market value also finished in negative territory albeit on light volumes. Bank of Valletta plc and GO plc shed around 1% to €0.90 and €3.34 respectively. International Hotel Investments plc lost 4.4% to the €0.65 level whilst the ordinary shares of RS2 Software plc returned to the €1.92 level (-0.5%).

A single deal of 20,000 shares forced the equity of BMIT Technologies plc to move 0.4% lower to the €0.498 level.

Meanwhile, PG plc added 0.9% to the €2.26 level whilst Malta International Airport plc stayed at the €6.35 level. Both equities traded on insignificant volumes.

The RF MGS Index lost 0.19% to a one-month low of 1,100.943 points as sovereign bond yields in the euro area resumed their upward trend. Yesterday, ECB President Christine Lagarde addressed a European Parliament committee during which she explained the central bank’s improved economic outlook supported by the various fiscal and monetary stimulus. In fact, the ECB now expects a robust rebound in consumer spending and business investments during the second half of 2021. Elsewhere, the price of oil reached the USD75 per barrel level for the first time since April 2019, reflecting optimism of strong economic growth in the months ahead.

Yesterday, Exalco Finance plc published an updated Financial Analysis Summary providing the financial forecasts for 2021. Revenues are expected to improve marginally to €4.3 million reflecting the additional income from the Phoenix Business Centre as well as the contractual annual increments in relation to existing lease agreements. In addition, the forecasts show that the interest cover is expected to strengthen to 3.9 times. Similarly, the net debt to EBITDA multiple is anticipated to improve to 3.7 times whilst the debt to asset ratio will strengthen to 0.29 times.