Daily Market Highlights (28.06.2021)

MSE Equity Price Index remains unchanged

 

The MSE Equity Price Index opened the week flat at around 3,892 points as the gains in MIA, HSBC and Malita were offset by the drop in the share price of BOV. Meanwhile, GO and Loqus ended the day unchanged as overall trading activity remained muted with only €0.04 million worth of shares changing hands. Download today’s Equity Market Summary.

Malta International Airport plc added 0.8% to regain the €6.40 level across 4,000 shares. In an interview published on the local media, MIA CEO Mr Alan Borg explained that tourism in Malta is expected to return to pre-pandemic levels by 2023.

Also among the large companies by market value, HSBC Bank Malta plc added 1.3% back to the €0.80 level on a total of 1,587 shares.

A single deal of 10,000 shares lifted the equity of Malita Investments plc 3.6% higher to the €0.86 level.

Bank of Valletta plc lost 1.7% to end the day at the €0.88 level across 8,054 shares.

Elsewhere, GO plc stayed at the €3.36 level on light trading activity. Last Friday, GO announced that it received applications amounting to €176 million for the offer of €60 million in 3.5% unsecured bonds maturing in 2031. The Bonds are expected to be admitted to listing on 5 July and trading is expected to commence as from 6 July.

Loqus Holdings plc remained at the €0.097 level on trivial volumes.

The RF MGS Index dropped by 0.2% to an over eleven-month low of 1,097.774 points. On the economic front, German import prices increased by 1.7% in May, slightly more than the increase of 1.4% originally forecasted. Meanwhile in the US, following a surge in demand at various food and beverage outlets, many businesses are reporting shortages in their stock as suppliers and logistics firms are struggling with various bottlenecks created due to earlier closures.

Today, Medserv plc published an updated Financial Analysis Summary (“FAS”) which also includes the forecasts for 2021. Revenues are expected to increase by 37.6% to €44.6 million reflecting the resumption of business activity across the Group’s various geographic regions. Moreover, the projections include the six-month contribution of Regis Holdings Limited following the completion of the share for share exchange. EBITDA is expected to almost double to €10.7 million whilst the interest cover is projected to climb to 2.6 times compared to 1.4 times in 2020. The expected financial position as at 31 December 2021 shows a marked increase in total assets and equity reflecting the transaction with Regis Holdings. Net debt is projected to decrease to €60 million compared to €70.8 million as at the end of 2020. As a result, and in view of the strong improvement in EBITDA, the net debt to EBITDA multiple is expected to drop to 5.62 times compared to 12.7 times in 2020. Similarly, the Group’s gearing ratio (calculated as total debt divided by total debt plus equity) is forecasted to decrease to 51.4% from 94.8% as at the end of 2020.

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