Daily Market Highlights (27.05.2019)

The MSE Equity Price Index opened the week in negative territory as it slipped by 0.73% to 4,819.620 points. The drop reflects the declines in the share prices of MIA and HSBC which, in aggregate, outweighed the gains in six other companies including GO, BOV and Farsons. Meanwhile, trading activity remained encouraging as almost €0.42 million worth of shares changed hands. Download today’s Equity Market Summary.

The RF MGS Index trended higher for the fourth consecutive day as it climbed by a further 0.06% to 1,118.468 points – the highest level since mid-December 2017. Furthermore, the prices of various Malta Government Stocks (“MGS”) reached new record highs today, including the four longest-dated MGS namely the 2.5% MGS 2036 (which is now at 115.36%), the 2.1% MGS 2039 (108.27%), the 3% MGS 2040 (124%) and the 2.4% MGS 2041 (113.21%). This took place as sovereign bond yields in the euro area continued to slide, with the 10-year benchmark German Bund yield dropping to almost minus 0.15% – the lowest level since end September 2016.

Following last week’s rally of 14.5%, today the equity Malta International Airport plc fell by just over 5% back to the €7.50 level albeit on minimal volumes.

HSBC Bank Malta plc also recorded a sharp decline of 2.9% to the €1.65 level on light trading activity totalling 5,334 shares.

Conversely, Bank of Valletta plc regained the €1.34 level (+0.8%) across 16,758 shares. Shareholders as at close of trading on 6 June will receive one bonus share for every ten shares held. Today, BOV announced that it has authorised the submission of an application requesting the approval for admissibility to listing of €50 million new unsecured and subordinated bonds having a coupon of 3.75% and maturing between 2026 and 2031. The bonds are intended at further strengthening the bank’s capital base.

Also among the large companies, GO plc trended 0.5% higher to recapture the €4.30 level across 20,520 shares. Tomorrow, GO is due to hold its AGM during which shareholders will be asked to consider a number of resolutions including the payment of a net dividend per share of €0.14.

A single deal of 1,000 shares lifted the equity of Simonds Farsons Cisk plc to a new record high of €10.90 (+1.9%). The food and beverages company is due to hold its AGM on 24 June.

Medserv plc climbed 0.9% back to the €1.11 level across 85,144 shares. Last week, Medserv published an updated Financial Analysis Summary providing forecasts for the current financial year ending 31 December 2019 as well as an Interim Report providing an overview of the company’s performance during the first three months of 2019. The company is projecting a significant turnaround in operational results in 2019, largely reflecting increased business in various regions as well as improved profit margins. This morning, the oil and gas services company also held its AGM during which shareholders approved all items placed on the agenda.

In the property segment, Malta Properties Company plc added 0.8% to the €0.62 level on activity totalling 56,625 shares. MPC’s AGM is scheduled to be held on 11 June.

Malita Investments plc closed 1.8% higher at the €0.855 level after strongly recovering from an intra-day low of €0.81 (-3.6%). A total of 32,000 shares traded.

On the other hand, MIDI plc traded unchanged at the €0.60 level on shallow volumes. MIDI is due to hold its AGM on 11 June.

RS2 Software plc held on to the €1.40 level after rebounding from an intra-day low of €1.35 (-3.6%) on a total of 31,860 shares. RS2 is scheduled to hold its AGM on 18 June.

BMIT Technologies plc maintained the €0.54 level across 67,587 shares. Last Thursday, BMIT announced that it entered into a promise of sale agreement for the acquisition of the building that currently houses its data centre in Handaq, Qormi. Through this acquisition, the company will be able to carry on a significant part of its operations from its own property, thus minimising or avoiding risks associated with a migration to another facility including financial expense, operational disruption and risk of loss of business. BMIT also explained that it will no longer have to honour the remaining term of the current lease resulting it in incurring less expenditure on rental of premises.

Two deals totalling 75,502 shares left the equity of FIMBank plc at its 2019 low of USD0.60.

MaltaPost plc also ended the day flat at the €1.32 level on trivial volumes. The postal operator is due to publish its interim financial results on Thursday 30 May.

This morning, Grand Harbour Marina plc published an updated Financial Analysis Summary showing that the company is expecting to register a near 15% increase in EBITDA in 2019 reflecting the implementation of new accounting standards governing the recognition of lease expenses as part of finance costs instead of operational expenses.