Daily Market Highlights (22.11.2021)

Malita share price drops to near 2-year low

 

The MSE Equity Price Index opened the week in negative territory as it eased by 0.09% to 3,829.350 points. The declines in BOV, Malita, Harvest and MaltaPost outweighed the gains in IHI and MPC. Meanwhile, Mapfre and RS2 remained unchanged as overall trading activity amounted to €0.08 million. Download today’s Equity Market Summary.

Malita Investments plc moved 1.2% lower to a 19-month low of €0.80 on two deals totalling 3,087 shares.

In the technology sector, Harvest Technology plc eased by 0.7% to a 2-week low of €1.46 on a single trade of 10,000 shares.

MaltaPost plc moved 1.6% lower to a 6-week low of €1.23 on 20,000 shares.

The other negative performing equity was Bank of Valletta plc which dropped by 2.3% to a 2-week low of €0.85 across five trades totalling 18,124 shares.

Also among the large companies by market value, International Hotel Investments plc rebounded by 1.8% to regain the €0.58 level after failing to hold on to an intraday high of €0.585 (+2.6%) on activity totalling 29,367 shares.

Malta Properties Company plc surged by 5.7% to recapture the €0.56 level across 6,500 shares.

Meanwhile, Mapfre Middlesea plc remained at the €2.20 level after recovering from an intraday low of €2.18 (-0.9%) on shallow volumes.

The ordinary shares of RS2 Software plc traded flat at the €1.72 level on trivial volumes.

The RF MGS Index moved higher for the third consecutive day as it advanced by a further 0.40% to 1,091.645 points. Sovereign yields in the euro area edged lower amid concerns of a slowdown in economic activity due to fresh lockdowns in central Europe. Elsewhere in the US, President Biden confirmed the nomination of Jerome Powell for a second term as Chairman of the Federal Reserve. Reports also suggested that the President will nominate current Fed governor Lael Brainard as the central bank’s vice chair.

Today, the Central Bank of Malta published an Interim Financial Stability Report outlining the developments within the local financial sector during the first half of 2021. The report explains how the gradual reopening of the economy contributed positively to the performance of the domestic financial sector. Bank deposits and customer loans continued to increase while core domestic banks maintained healthy levels of capital and liquidity buffers. Meanwhile, the overall non-performing loans ratio for core domestic banks increased marginally to 3.9% from 3.7% as at the end 2020.

Today, GAP Group plc announced that it submitted an application to the Malta Financial Services Authority requesting the admissibility to listing of €21 million 3.90% Gap Group plc secured bonds maturing between 2024 and 2026. Subject to obtaining regulatory approval, GAP Group will be inviting holders of the €19.2 million 4.25% Gap Group plc secured bonds 2023 as at close of trading on 24 November 2021 to subscribe to the new bonds by surrendering their respective holding, and in so doing, will benefit from a premium of 1.25% on the nominal value of the 4.25% secured bonds 2023 so surrendered. Furthermore, holders of the 4.25% secured bonds 2023 may also subscribe for additional amounts in the new bonds. Full details of the new bonds will be provided in a prospectus that will be made available following the necessary approval by the Malta Financial Services Authority.

Last Friday, Hili Properties plc announced that it signed a preliminary agreement with YIT Lietuva for the acquisition of a production plant located in the Klaipėda Free Economic Zone, Lithuania. Hili Properties noted that this latest agreement fits in with its strategy to diversify its portfolio and tenant mix, whilst ensuring solid, long-term investment. The Hili Properties IPO application period ends on Friday 26 November 2021.

 

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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