Daily Market Highlights (23.07.2021)

MIA retreats to 7-week low


The MSE Equity Price Index gained 0.04% to 3,853.541 points as the gains in BMIT, BOV and HSBC outweighed the decline in MIA. Meanwhile, Harvest, MIDI, and Farsons traded unchanged as overall trading activity remained subdued at €0.04 million. Download today’s Equity Market Summary.

Today’s only negatively performing equity, Malta International Airport, lost 1.6% to a seven-week low of €6.20 on a single trade of 950 shares.

In the retail banking sector, Bank of Valletta plc recovered some of yesterday’s losses as it gained 0.6% to the €0.89 level across a single deal of 3,661 shares. Similarly, HSBC Bank Malta plc advanced by 1.9% to the €0.82 level on two trades totalling 1,500 shares. BOV and HSBC will be publishing their 2021 interim financial results on 29 July and 2 August respectively.

The other positive performing equity today was BMIT Technologies plc which traded 1.2% higher to the €0.496 level on a single deal of 10,239 shares. BMIT will be publishing its 2021 interim financial results on 6 August.

Also within the technology sector, Harvest Technology plc remained unchanged at the €1.51 level on 16,182 shares.

Simonds Farsons Cisk plc also closed unchanged at the €8.95 level on a single trade of 503 shares. On Wednesday, Farsons published an updated Financial Analysis Summary which provided the forecasts for the current financial year ending 31 January 2022. 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.

Elsewhere, MIDI plc traded flat at the €0.36 level on negligible volumes.

The RF MGS Index recovered some of yesterday’s losses with an uplift of 0.08% to 1,103.291 points as Eurozone yields eased following yesterday’s European Central Bank (‘ECB’) decision to keep interest rates at their lowest on record whilst also maintain an accommodative monetary policy stance for the foreseeable future. The ECB Governing Council also confirmed that monthly net asset purchases will continue for as long as necessary with a view to reach its new inflation target of 2% once economic conditions stabilise post the pandemic. Meanwhile, the IHS Markit Eurozone Composite Purchasing Managers Index (‘PMI’) increased more than expected in July on the back of the sharpest increase in private sector activity since July 2000 as the currency block continues to emerge from the pandemic downturn.

Yesterday, Melite Finance plc issued an announcement providing an update on its business. Despite the conclusion of some new sub-lease agreements, the Group explained that it remains cautious that the position in Italy, and that of its business, remain subject to a variety of factors which are not within its sphere of control or influence. Melita Finance also reiterated that it intends to call a meeting of Bondholders for the purpose of putting forward proposals in relation to the revision of certain terms of the bonds in issue, with a view to reflect the new economic realities post the pandemic.