Daily Market Highlights (26.03.2021)

MSE Equity Price Index falls to near 4-month low


The MSE Equity Price Index lost 0.95% as it fell to a near 4-month low to 3,768.990 points as the declines in BOV, FIMBank and MPC outweighed the gains in BMIT, Medserv and Farsons. Meanwhile HSBC, MIA, PG and RS2 traded flat on overll trading activity of €0.1 million. Download a copy of today’s Equity Market Summary.

Bank of Valletta plc fell by 2.2% to the €0.88 level across 30,013 shares. Yesterday, BOV announced that it carried out a €20 million capital injection in favour of its insurance associate company Mapfre MSV Life plc (“MMSV”) to acquire shares in the company as part of its recapitalisation exercise. BOV explained that it is supportive of MMSV which has been profitable over the years and does not wish to dilute its shareholding and influence in the company. The shareholding in MMSV is held jointly between BOV (50%) and MAPFRE Middlesea plc (50%). Moreover, BOV is a major shareholder in MAPFRE Middlesea plc with an equity stake of just over 31%. BOV added that MAPFRE Middlesea plc will also be making a €20 million capital injection into MMSV. Meanwhile, BOV’s Board of Directors is scheduled to meet on Tuesday 30 March 2021 to consider and approve the financial statements for the year ended 31 December 2020.

Malta Properties Company plc shed 3.7% to the €0.52 level as 32,719 shares changed hands. The Board of Directors of MPC is recommending the payment of a net dividend of €0.012 per share (2019: €0.01 per share). Shareholders as at close of trading on Monday 14 June 2021 will be entitled to receive this dividend on Wednesday 21 July 2021 subject to shareholders’ approval during the upcoming Annual General Meeting scheduled to be held remotely on Thursday 15 July 2021.

Elsewhere, FIMBank plc plunged by 15.9% to a 7-week low at the USD0.37 level across 15,000 shares.

BMIT Technologies plc advanced by 1.9% as it regained the €0.53 level across 56,000 shares. BMIT shares are trading with the entitlement to a final net dividend of €0.02922 per share until Thursday 22 April 2021. The final net dividend will be paid out on Friday 28 May 2021.

Medserv plc (+8.6%) and Simonds Farsons Cisk plc (1.3%) rose to the €0.63 level and the €8.10 level respectively across trivial volumes.

Similarly, RS2 Software plc traded flat at the €1.79 level across a single trade of insignificant volumes. Today, RS2 announced that its Managed Services subsidiary RS2 Smart Processing Ltd concluded a major processing outsourcing agreement with its Business Partner Alpha Fintech to provide acquiring services to Bank of New Zealand in New Zealand. The agreement runs for an initial term of 3 years with the option to extend yearly. Through this same agreement, RS2 has also signed on another two clients, a large fintech company in Singapore and a financial institution in Indonesia. The projected revenue from the aforementioned clients has been taken into consideration and is reflected in the projections contained in the prospectus dated 19 February 2021 relating to the issue of preference shares.

PG plc retained the €2.02 level as 6,975 shares changed hands whilst Malta International Airport plc closed unchanged at the €5.85 level across 409 shares.

Meanwhile, a single trade of 5,000 shares in HSBC Bank Malta plc saw the equity retain the €0.80 level.

The RF MGS Index declined for the first time in five sessions as it fell by 0.17% to 1,119.966 points. Similarly, 10-year Euro Sovereign Bond yields rose despite new coronavirus infections continuing to surge higher across the world. In fact, yesterday, more than 733,000 new cases were reported, the highest daily increase since mid-January.

Yesterday, Mapfre Middlesea plc published its audited financial statements for the financial year ended 31 December 2020 whereby it revealed that Group profit after tax amounted to €9.1 million compared to €9.6 million in FY2019. The Board noted that the outlook for 2021 is one of cautious optimism as the pandemic continues to weigh heavy on economic activity in the country. The Board expects general business to grow at a lower rate than that experienced in recent years, while that for the protection of savings and investments products in life to remain strong. The Board of Directors is recommending the payment of a final net dividend of €0.034782 per share for approval during the Annual General Meeting (“AGM”) on Friday 30 April 2021. The final net dividend, if approved at the AGM, will be paid on Tuesday 25 May 2021 to shareholders as at close of trading on Monday 10 May 2021.