Daily Market Highlights (24.11.2021)

High trading activity in BOV shares


The MSE Equity Price Index remained virtually unchanged at 3,827.969 points as the gain in BOV was offset by the declines in GO, RS2, Plaza, and MaltaPost. Trading activity reached the highest level in nearly three months as €0.38 million worth of shares changed hands, of which 90% took place in BOV shares. Download today’s Equity Market Summary.

Bank of Valletta plc recaptured the €0.87 level (+2.4%) on robust volumes totalling 403,701 shares having a market value of €0.34 million.

Also among the large companies by market value, GO plc slipped 1.2% back to the €3.30 level on four deals totalling 4,899 shares. Today, GO’s data centre and managed IT services subsidiary – BMIT Technologies plc – published a quarterly update providing indications about its performance during the nine-month period ended 30 September 2021. In this respect, BMIT explained that revenues increased by 6.8% to just over €19 million reflecting growth across all income streams particularly the sale of cloud services which surged by 12%. Similarly, expenses increased by 8% to €10.7 million reflecting the growth in business activity as well as additional investments in HR. However, given the higher growth in revenues in absolute terms than the increase in costs, EBITDA increased by 5.5% to €8.4 million. Looking ahead, BMIT explained that recent months were characterised by a thorough evaluation of a number of initiatives aimed at growing the business both locally and internationally, as well as continue transforming the company into a holistic digital enabler and advisory partner. These measures will ensure that BMIT taps into the right opportunities at the appropriate time, whilst keeping in mind the strategic business objectives and the commitments to shareholders.

The ordinary shares of RS2 Software plc declined by 1.7% to a two-year low of €1.69 on two trades totalling 4,300 shares.

Elsewhere, Plaza Centres plc erased yesterday’s gains as it retracted to the €0.90 level (-3.2%) across 6,971 shares.

MaltaPost plc moved 2.4% lower to the €1.20 level on 5,500 shares.

The RF MGS Index extended yesterday’s decline by a further 0.35% to a three-week low of 1,082.643 points. Developments taking place in the US continued to dominate movements across international financial markets. Fresh data showed that the US economy grew by 2.1% (annualised) in Q3 2021, in line with estimates. Moreover, the number of new applications for unemployment benefits reached a multi-year low, reflecting the continued robust recovery underpinning the world’s largest economy.

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.