Daily Market Highlights (26.11.2019)

MSE Equity Price Index drops to near 3-month low

 

The MSE Equity Price Index fell by 0.3% to a near three-month low of 4,760.032 points as various companies trended lower whilst only RS2 ended the day in positive territory. Meanwhile, a single deal of just 3,000 shares left the equity of Plaza Centres plc at the €1.02 level. Download today’s Equity Market Summary.

HSBC Bank Malta plc returned back to its multi-year low of €1.25 (-2.3%) albeit on insignificant volumes. Last Friday, HSBC issued an Interim Directors’ Statement updating the market on the bank’s performance since the start of 2019. In this respect, HSBC explained that its profit before tax was higher than the same period in 2018. Although revenues remained under downward pressure, expected credit losses remained well within management expectations and below 2018. Furthermore, operating expenses were lower than the same period in 2018. Commenting on the bank’s performance, HSBC Malta CEO Mr Andrew Beane highlighted the importance for the bank to continue improving its efficiency and strengthen its resilience amid unfavourable market dynamics.

Within the same sector, Bank of Valletta plc eased by 0.9% to the €1.09 level across 42,424 shares.

Also among the large companies, Malta International Airport plc retracted by 0.7% to €7.15 – the lowest level in twelve weeks – on activity totalling 1,480 shares.

BMIT Technologies plc continued to trade within a tight range as the equity moved back by 1% to the €0.515 level across 51,130 shares. Last Thursday, BMIT issued an upbeat Interim Directors’ Statement indicating that the company’s performance for the 2019 financial year will be superior to its earlier projections.

The other negative performing equity today was Malita Investments plc with a drop of 1.6% to the €0.90 level across 31,353 shares.

RS2 Software plc rebounded by nearly 2% to the €2.14 level across 25,385 shares.

GO plc announced that it entered into an agreement with Cablenet Communications Systems Ltd (which is GO’s 51% subsidiary in Cyprus) following which GO will increase the amount of an intra-group loan to Cablenet to €7 million (from the previous amount of €3 million), and that such loan is repayable by 25 November 2024. Moreover, GO and Cablenet have also agreed that previous loan balances provided by GO to Cablenet amounting to €16.7 million (including interests) will now be capitalised. As a result, GO’s shareholding in Cablenet will increase to 60.26%. However, pursuant to an ‘Option Agreement’ entered into between GO and Mr Nicolas Shiacolas (who is the other shareholder of Cablenet), Mr Shiacolas has been given the option to subscribe for additional shares in Cablenet.

Malta Properties Company plc confirmed the execution of the final deed of sale in respect of the St. Paul’s Bay Old Exchange to Vienna Company Limited (who accepted the promise of sale agreement originally entered into with BLMG Limited as announced on 4 August 2017)  for a total consideration of €3.75 million. The proceeds from the disposal of the property are expected to go towards part funding MPC’s future development projects and/or any acquisition opportunities.

The RF MGS Index extended yesterday’s gain by a further 0.13% to 1,152.677 points as eurozone sovereign bond yields trended lower despite encouraging comments made by US Federal Reserve Chairman Jerome Powell on the current status of the US economy. Mr Powell also signalled that interest rates in the world’s largest economic are likely to remain on hold for the time being.

Across the local corporate bond market, there were some notable declines in the bonds of SD Finance plc and Mercury Projects Finance plc.

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