Daily Market Highlights (24.05.2019)

The MSE Equity Price Index erased some of yesterday’s decline as it rebounded by 0.36% to 4,855.258 points. Today’s gain reflects the positive performances of Farsons (which moved to a fresh all-time high), HSBC, RS2 and Medserv. On the other hand, five companies trended lower whilst four other shares closed the day unchanged.  The majority of today’s trading activity took place in MPC and FIMBank. Download a copy of today’s Equity Market Summary.

The RF MGS Index trended higher for the third consecutive day as it climbed by a further 0.06% to 1,117.772 points – the highest level since mid-December 2017. Malta Government Stocks price edged higher as a result of the increased perceived risks across international financial markets which, in turn, reflect heightened uncertainties related to the trade relationship between the US and China.

Simonds Farsons Cisk plc extended its recent rally as the equity added a further 1.9% to a new record high of €10.70 across 1,877 shares. The food and beverages company is due to hold its AGM on 24 June.

HSBC Bank Malta plc regained the €1.70 level (+2.4%) on activity totalling 13,592 shares.

RS2 Software plc moved 1.4% higher to the €1.40 level across 15,000 shares. RS2 is due to hold its AGM on 18 June.

The share price of Medserv plc remained volatile and following yesterday’s sharp decline of 13.1%, the equity recovered by 14% today to €1.10 albeit on just 9,500 shares. On Wednesday, Medserv published an updated Financial Analysis Summary providing forecasts for the current financial year ending 31 December 2019 as well as an Interim Report providing an overview of the company’s performance during the first three months of 2019. The company is projecting a significant turnaround in operational results, largely reflecting increased business in various regions (particularly in Suriname, South America) as well as improved profit margins. Overall, Medserv is expecting to almost double its EBITDA to a record high of €14.1 million in 2019 from €7.32 million last year. The company is due to hold its AGM next Monday 27 May.

In contrast, FIMBank plc was the worst performing equity today with a drop of 3.2% to a fresh 2019 low of USD0.60 on high volumes of 208,070 shares.

Both Malta International Airport plc (3,770 shares) and Malita Investments plc (6,055 shares) eased by 0.6% to €7.90 and €0.84 respectively.

Plaza Centres plc retreated by 0.5% back to its 2019 low of €0.99 on five deals totalling 28,400 shares. Plaza is due to hold its AGM on 5 June.

Within the same segment, Malta Properties Company plc slipped by 0.8% to the €0.615 level on heighted activity totalling 206,503 shares. MPC’s AGM is scheduled to be held on 11 June.

Meanwhile, a single deal of just 12,600 shares left the equity of BMIT Technologies plc at the €0.54 level. Yesterday, BMIT announced that it entered into a promise of sale agreement for the acquisition of the building that currently houses its data centre in Handaq, Qormi. The consideration of the deal amounts to €4 million and the promise of sale agreement is valid and effective up to the 23 January 2020. In this respect, BMIT also explained that through this acquisition, the company will be able to carry on a significant part of its operations from its own property, thus minimising or avoiding risks associated with a migration to another facility including financial expense, operational disruption and risk of loss of business. The acquisition will also mean that BMIT will no longer have to honour the remaining term of the current lease resulting it in incurring less expenditure on rental of premises.

International Hotel Investments plc traded unchanged at its highest level since June 2015 of €0.81 on light volumes. IHI is due to hold its AGM on 13 June. Shareholders as at close of trading on 26 June are entitled to receive a net dividend per share of €0.02.

GO plc ended flat at the €4.28 level after recovering from an intra-day low of €4.20 (-1.9%). A total of 7,570 shares traded. GO is scheduled to hold its AGM on Tuesday 28 May.

Bank of Valletta plc maintained the €1.33 level across 27,923 shares. Shareholders as at close of trading on 6 June will receive one bonus share for every ten shares held.