The MSE Equity Price Index opened the week in negative territory as it slid by a further 0.72% to a twenty-week low of 3,752.568 points. The drop was driven by the sharp fall in the share price of MIA which coupled with the declines in BMIT, PG and Harvest outweighed the gains in five other companies. Meanwhile, RS2 and Farsons closed the day unchanged as trading activity remained muted with €0.14 million worth of shares changing hands.
Malta International Airport plc lost 7.7% to a three-month low of €4.80 across 13,396 shares.
Two deals totalling 2,000 shares forced the equity of PG plc to move 2.1% lower to the €1.90 level. The company is soon expected to publish its full-year results for the financial year ended 30 April 2020.
BMIT Technologies plc moved back to the €0.47 level (-3.3%) across 21,300 shares. Last Friday, BMIT published its interim financial results showing an increase of nearly 5% in revenues to €11.7 million whilst net profits surged by 8.3% to €2.54 million. The company explained that despite the various challenges brought about by COVID-19, it remains active in pursuing new initiatives aimed at delivering additional value and sustainable returns to its shareholders.
Also in the technology segment, Harvest Technology plc shed 2% to the €1.44 level albeit on just 2,000 shares.
In contrast, RS2 Software plc maintained the €2.34 level after opening at a low of €2.26 (-3.4%) on trivial volumes.
A single deal of 525 shares left the equity of Simonds Farsons Cisk plc at the €7.60 level.
Meanwhile, International Hotel Investments plc (1,698 shares) and HSBC Bank Malta plc (19,323 shares) added around 1% to €0.53 and €0.85 respectively.
GO plc rebounded by 0.6% to regain the €3.26 level across 449 shares. Last Friday, GO published its interim financial results showing a resilient performance as EBITDA only dropped by a marginal 0.4% to €35.5 million. The company also recorded a 5.2% increase in net cash from operating activities to €26.1 million which were channelled towards further capital expenditure investments amounting to nearly €30 million.
Also among the large companies, Bank of Valletta plc inched 0.2% higher to the €0.932 on light volumes totalling 1,322 shares. Last Friday, BOV issued an announcement in relation to recent articles in the press in which it was reported that the bank made an out-of-court settlement offer of €50 million to the Deiulemar bondholders in Italy.
In this respect, BOV explained that regardless of the offer and its outcome, it has consistently been advised by its lawyers that the Deiulemar case is completely without merit. In this context, however, BOV explained that there is still the risk at first instance against it. In view of this, and because of the consequential costs the bank may have to incur, it made commercial sense for BOV to offer a settlement to the curators in order to close the matter. In other words, the offer was not a result of any change in the bank’s conviction that the
claim is entirely unmeritorious, but rather an attempt at finding a pragmatic, commercial solution.
Malta Properties Company plc rallied by 4.8% to the €0.545 level after strongly recovering from an intra-day low of €0.50 (-3.8%). A total of 60,000 shares traded. Today, MPC published its interim financial results showing a reduction in revenues as the lost income from the properties which have been vacated and have either been sold or are subject to a promise of sale agreement offset the upward inflationary adjustments on lease terms. The company also incurred an increase in costs amid higher level of business development activity including due diligence exercises on possible acquisitions. Looking ahead, MPC reiterated that it continues to pursue activities aimed at delivering additional shareholder value through the maximisation of its current property portfolio as well as extrinsic growth.
The RF MGS Index trended lower for the third consecutive day as it slipped by a further 0.05% to 1,110.082 points. Despite the sharp resurgence of COVID-19 cases around the world, investor sentiment across international financial markets was boosted by increased optimism over a new round of fiscal stimulus in the US.
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