Daily Market Highlights (27.11.2019)

HSBC share price slides to 16-year low


The MSE Equity Price Index extended its recent downward trend as it fell by a further 0.21% to 4,750.069 points – the lowest level since early September 2019. HSBC, BOV and BMIT all posted losses whilst only GO moved in positive territory. Meanwhile, six companies ended unchanged whilst trading activity remained subdued as only €0.13 million worth of shares changed hands. Download today’s Equity Market Summary.

HSBC Bank Malta plc shed 1.6% to a new 16-year low of €1.23 across 13,943 shares. 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 0.9% to a one-month low of €1.08 on activity totalling 8,797 shares.

The other negative performing equity today was BMIT Technologies plc with a drop of 1% to the €0.51 level across 64,511 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.

BMIT’s parent company – GO plc – added 0.9% to regain the €4.26 level albeit on trivial activity. On Monday, GO announced that it entered into an agreement with Cablenet Communications Systems Ltd (which is GO’s 51% subsidiary in Cyprus) pursuant to which, it will increase its shareholding in Cablenet to 60.26% from 51%. However, the agreement also stipulates that Cablenet’s minority shareholder also has the option to subscribe for additional shares in Cablenet subject to a maximum stake of 49%.

Low trading activity also took place in the equities of MIDI plc and Malita Investments plc which traded unchanged at €0.65 and €0.90 respectively.

Within the same segment, Plaza Centres plc maintained the €1.02 level across 11,500 shares.

A single deal of 3,000 shares left Malta International Airport plc at its twelve-week low of €7.15.

Lombard Bank Malta plc (7,390 shares) and PG plc (1,690 shares) also ended the day flat at €2.26 and €1.79 respectively.

The RF MGS Index reversed some of the strong gains registered in the previous two days as it retreated by 0.16% to 1,150.873 points. The drops in the prices of Malta Government Stocks reflected changes in the yields of Italian government bonds which trended higher despite surprise contractions in business and consumer confidence.

The prices of some local corporate bonds registered wide movements. While the 5% Tumas Investments plc 2024 bonds rallied by 400 basis points to 106%, the 5% DIZZ Finance plc 2026 bonds shed 200 basis points to 101% and the 4.35% SD Finance plc 2027 bonds dropped by 126 basis points to 99%. Meanwhile, the two bonds issued by Mercury Projects Finance plc bonds continued to trade below par value.

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