Daily Market Highlights (24.06.2020)

MSE Equity Price Index rebounds by nearly 1%


The MSE Equity Price Index erased yesterday’s sharp decline as it advanced by 0.92% to 4,027.332 points. All actively traded equities posted gains except RS2 Software plc which ended the day unchanged at the €2.40 level on just 2,000 shares. Download today’s Equity Market Summary.

Low trading volumes also characterised the activity of most other shares. A single deal of 4,000 shares lifted the equity of International Hotel Investments plc 4.5% higher to the €0.585 level. IHI is due to publish its 2019 financial results on Friday 26 June.

Also among the large companies, Malta International Airport plc added 1.8% to regain the €5.80 level across 3,400 shares.

The two largest banks – namely Bank of Valletta plc and HSBC Bank Malta plc – also trended in positive territory today, gaining around 1% to €1.02 and €0.96 respectively albeit on light volumes.

Within the same sector, Lombard Bank Malta plc climbed 2.9% higher to recapture the €2.10 level across 1,000 shares.

Plaza Centres plc surged 5.1% to the €1.03 level on activity totalling 17,500 shares.

Main Street Complex plc rallied 9.6% to the €0.57 on trivial volumes. Shareholders as at close of trading today will be entitled to receive a final net dividend of €0.00831 per share. The dividend will be paid on 31 July subject to shareholders’ approval during the upcoming AGM which is scheduled to be held on 29 July.

Yesterday, MIDI plc published an updated Financial Analysis Summary which also included the financial forecasts for the current financial year ending 31 December 2020. Revenues are expected to amount to €2.18 million reflecting lower rental income due to the impact of ‘COVID-19’ as well as no property sales given that the company has a stock of only three units which are available for sale. On the other hand, the share of profits from MIDI’s investment in ‘The Centre’ office block is forecasted to increase by more than 40% reflecting incremental increases in lease rates as well as the rationalisation of costs. With respect to the expected financial position as at 31 December 2020, bank borrowings and bonds are anticipated to remain unchanged at €59.4 million. Cash balances are expected to drop by €15 million to €6.9 million reflecting the increase of €8.41 million in inventories (mostly related to the Manoel Island project) as well as the reduction of €4.49 million in trade and other payables. Meanwhile, the company’s equity base is expected by contract by 1.9% to just under €102 million which, in turn, would translate into a net asset value per share of €0.476 compared to €0.485 as at 31 December 2019.

The RF MGS Index trended lower for the first time in five days as it slipped by 0.18% to 1,097.358 points. Fresh economic data in Germany was encouraging pointing towards renewed optimism amongst businesses despite the recent spike in COVID-19 cases. Meanwhile, the IMF published its revised outlook on the global economy showing a sharper drop in output this year and a lower rebound of 5.4% in 2021 compared to the earlier forecast of a growth of 5.8%.