Daily Market Highlights (25.11.2021)

MSE Equity Price Index drops to 2-week low

 

The MSE Equity Price Index dropped by 0.40% to a two-week low of 3,812.733 points reflecting the declines in BOV, GO and Malita. Trading activity eased to €0.09 million compared to €0.38 million yesterday. Download today’s Equity Market Summary.

Bank of Valletta plc erased yesterday’s gains as it retracted to the €0.85 level (-2.3%) on volumes totalling 82,000 shares having a market value of €0.07 million.

Also among the large companies by market value, GO plc declined by 1.2% to a two-week low of €3.26 on two deals totalling 4,500 shares. Yesterday, 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.

Elsewhere, Malita Investments plc continued to trade within a tight range as it eased by 0.6% to the €0.805 level on a single deal of 2,500 shares.

The RF MGS Index registered its third consecutive daily decline as it eased by further 0.05% to a new three-week low of 1,082.149 points. Today, the ECB published the minutes of the most recent monetary policy meeting. These showed that rate setters had diverging views on the monetary policy to be adopted by the central bank in the coming months amid uncertainties on whether prevailing inflationary pressures are temporary or otherwise. In contrast, the minutes of the latest Federal Reserve monetary policy meeting which were published yesterday showed that some policymakers are favouring a quicker tapering of the central bank’s bond buying programme and would also consider raising interest rates sooner. These views emerged amid continued concerns on rising inflation which is being driven by supply-chain disruptions and high energy prices.

 

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.

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