Daily Market Highlights (29.03.2021)

Harvest surges to all-time high


The MSE Equity Price Index rebounded by 0.73% to 3,796.479 points as the gains in BOV, Harvest, HSBC, MIA and Tigné Mall outweighed the declines in RS2 and PG. Meanwhile, BMIT, GO and MPC all closed unchanged as overall trading activity improved to €0.4 million, largely on the back of heightened activity in HSBC which accounted for just over half of today’s total value traded. Download today’s Equity Market Summary.

Harvest Technology plc advanced by 6.1% to a new all-time high of €1.57 across 34,548 shares. On Friday, Harvest published its annual results for the financial year ended 31 December 2020 whereby it revealed that total revenues increased by nearly 20% to a record €19.2 million largely driven by the considerable growth registered by the ‘Consulting Services & Development’ and the ‘Payment Gateway Services’ segments. Moreover, Harvest’s net profit improved by just under €1 million of €3.04 million. Looking ahead, Harvest explained that although the pandemic is limiting its endeavours to extend its presence overseas, it is nonetheless using this time to lay the groundwork for further internationalisation across all of its subsidiaries once business travel is practical and safe. In fact, APCO Systems is well positioned to pursue a growth campaign in Greece whilst PTL Limited is pursuing further prospects in the Indian Ocean and Africa. The Directors of Harvest Technology plc resolved to distribute a net dividend of €0.02 per share. This is payable on or around 9 April 2021 to all shareholders as at the close of trading on 29 March 2021. Harvest also noted that it will hold its Annual General Meeting remotely on 7 May 2021.

Meanwhile, HSBC Bank Malta plc edged 1.3% higher to the €0.81 level across heightened activity of 260,500 shares.

In the same sector, Bank of Valletta plc climbed by 4.5% as it regained the €0.92 level across 19,825 shares. Tomorrow, BOV’s Board of Directors is scheduled to meet to consider and approve the financial statements for the year ended 31 December 2020.

Also among the large equities by market cap, Malta International Airport plc closed 0.9% higher as it recaptured the €5.90 level across 1,448 shares.

Tigné Mall plc surged by 6.9% to the €0.70 level across a single deal of 2,500 shares.

Malta Properties Company plc retained the €0.52 level as 135,975 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, GO plc traded unchanged at the €3.62 level as 1,325 shares changed hands.

GO’s datacentre subsidiary, BMIT Technologies plc closed flat at the €0.53 level across 56,003 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.

Also in the IT Services sector, RS2 Software plc fell by 1.7% to a 1-month low at the €1.76 level across 11,400 shares. On Friday, 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 eased by nearly 1% to the €2.00 level across a single deal of just 500 shares.

The RF MGS Index resumed its upward trajectory as it rose by 0.06% to 1,120.683 points. The EU’s COVID-19 stimulus plan hit another snag last Friday after the German constitutional court raised questions about how the new €750 billion worth of debt is being taken on. A group in Germany, called the Citizens’ Will Alliance, complained to the country’s constitutional court that the European treaties do not allow the bloc to take on debt jointly. As a result, the German court on Friday stopped a law that would have paved the way for the European Commission to raise the funds. The German judges said they would have to first rule on a motion for an interim injunction on the law. The decision comes despite 478 out of 645 German lawmakers giving the ratification of the law the greenlight last week. Meanwhile, the Ever Given container ship was finally pulled free from the bank of the Suez Canal, allowing for a massive tail back of ships to start navigating once again through one of the world’s most important trade routes.