Daily Market Highlights (25.05.2020)

FIMBank & BMIT drop to new all-time lows


The MSE Equity Price Index opened the week lower as it shed 1.54% to an over six-week low of 3,849.017 points albeit on persistently light trading activity. The declines in IHI, FIMBank, BMIT, MIDI and Lombard led to today’s decline in the local equity index. On the other hand, only BOV and Farsons trended higher whilst four other companies closed the day unchanged. Download today’s Equity Market Summary.

FIMBank plc tumbled over 25% to a new record low of USD0.35 across four deals totalling 53,500 shares. Following last month’s credit-rating downgrade by Fitch to ‘B+’ coupled with a ‘negative’ outlook partly reflecting asset-quality deterioration, last Friday the bank announced that it has a net exposure of USD8.5 million to the Phoenix Commodities Group which recently entered into liquidation. In this respect, FIMBank explained that it is currently evaluating its legal position and implementing all risk mitigants possible.

BMIT Technologies plc also fell 5.9% to a new all-time low of €0.45 across 90,900 shares.

Similarly, International Hotel Investments plc shed 2.8% to a two-month low of €0.525 albeit on just 14,201 shares.

Two deals totalling 8,050 shares forced the equity of Lombard Bank Malta plc 1% lower back to the €2.06 level.

In the property segment, MIDI plc fell 7.1% to the €0.39 level across 34,450 shares.

On the other hand, Malita Investments plc held on to the €0.89 level across a total of 18,500 shares.

Medserv plc traded unchanged at its multi-year low of €0.70 across 11,000 shares. The company is due to publish its 2019 financial results on Friday 29 May.

Malta International Airport plc opened higher at the €5.00 level before easing back to end the day unchanged at the €4.94 level across 3,400 shares.

Three deals totalling 6,000 shares left the equity of RS2 Software plc unchanged at the €1.95 level.

Meanwhile, Bank of Valletta plc advanced 2% to regain the €1.04 level across 22,864 shares.

Simonds Farsons Cisk plc moved 3.1% higher to recapture the €8.30 level albeit on trivial volumes. The company is due to publish its 2019/20 financial results on Wednesday 27 May.

The RF MGS Index erased most of the gains recorded in the previous two days as it slipped by 0.2% to 1,107.639 points. On the economic front, Germany’s economy contracted by 1.9% in Q1 2020 when compared to the same period last year. On the other hand, surveys gauging business sentiment in Germany revealed a marked improvement on the back of increased government spending in a bid to counter the adverse effects of the coronavirus outbreak.