The MSE Equity Price Index opened the week in positive territory as it added 0.31% to a new over eleven-year high of 4,889.665 points. The gain was driven by the strong uplifts in the share prices of IHI and Trident. On the other hand, MIA and Mapfre Middlesea trended lower whilst several other companies, including BOV, closed the day unchanged.
This morning, Bank of Valletta plc unveiled that it has been advised by its USD correspondent bank that it will terminate its correspondence relationship with BOV with effect from 14 December 2019. In the meantime, BOV explained that it has intensified its endeavours to engage alternative correspondents to minimise any possible operational disruption to its business and its clients. Despite this important announcement, BOV’s equity ended today’s trading session unchanged at the €1.26 level across 30,970 shares.
On the other hand, International Hotel Investments plc surged by almost 6% to a new ten-year high of €0.90 on activity totalling 32,900 shares. Shareholders as at close of trading on 26 June will be entitled to receive a net dividend of €0.02 per share.
Trident Estates plc also extended its recent rally as the equity advanced by a further 6.2% to a fourteen-month high of €1.89 across 12,257 shares. Trident is due to hold its AGM on 25 June.
The other positive performing equity today was MaltaPost plc with a gain of 0.7% to the €1.49 level on 9,100 shares. Last week, the postal operator announced the formation of a new insurance company together with APS Bank plc, Atlas Insurance PCC Ltd and GasanMamo Insurance Limited which, subject to the necessary regulatory approvals, will carry out the business of life assurance.
In contrast, Mapfre Middlesea plc shed 5.4% to the €2.12 level albeit on a single deal of just 5,000 shares.
Malta International Airport plc retracted by 1.3% back to the €7.35 level across 6,100 shares.
Meanwhile, MIDI plc traded unchanged at the €0.61 level on strong volumes totalling 342,700 shares having a market value of €0.21 million.
Within the same sector, Malta Properties Company plc (72,584 shares) and Tigné Mall plc (100 shares) maintained the €0.63 and €0.91 levels respectively. Tigné Mall is scheduled to hold its AGM on Thursday 20 June. Shareholders as at close of trading tomorrow will be eligible to receive a final net dividend of €0.0131 per share.
GO plc opened 2.2% lower at the €4.48 level before recovering to close flat at its seven-week high of €4.58 on a total of 8,090 shares.
In the technology segment, both BMIT Technologies plc (49,784 shares) and RS2 Software plc (28,702 shares) rebounded from earlier losses to retain the same levels as last Friday of €0.545 and €1.40 respectively. Tomorrow, RS2 will be holding its AGM.
A single deal of 8,648 shares left the equity of Medserv plc at the €1.12 level.
Simonds Farsons Cisk plc held on to the €10.50 level across 3,113 shares. Farsons is due to hold its AGM on 24 June.
PG plc also traded unchanged at the €1.58 level on activity totalling 11,225 shares.
The RF MGS Index extended its recent gains by a further 0.12% to a fresh two-year high of 1,134.917 points. Various prices of Malta Government Stocks reached new record highs as downward pressure on eurozone sovereign bond yields continued unabated. Meanwhile, in an interview published today on the Financial Times, ECB Executive Board Member Mr Benoît Cœuré suggested that if the central bank opts to cut interest rates in the months ahead, it would also need to consider the effects that such a decision would have on the profitability of European commercial banks, and also whether a tiered deposit rate would be justified given the already low returns that most European banks generate today.
This article is provided by Rizzo Farrugia investment consultants.