The MSE Equity Price Index opened the week notably higher as it climbed 1.36% to a three-month high of 3,708.519 points. The upsurge was mainly driven by the strong gains in IHI, MIA and BOV as the three companies saw their combined market value increase by over €50 million. Meanwhile, only MPC trended lower whilst a further three companies closed the day unchanged as trading activity improved further to €0.2 million.
International Hotel Investments plc rallied almost 10% to a seven-month high of €0.625 across 80,480 shares.
Also among the large companies by market cap, Malta International Airport plc added a further 1.7% to a near six-month high of €5.85 on a total of 9,761 shares.
Bank of Valletta plc recaptured the €0.94 level (+1.1%) across 36,362 shares.
PG plc added 0.5% to regain the €1.90 level on eight deals totalling 20,400 shares. The company’s Board of Directors is scheduled to meet on 14 December to consider and, if deemed fit, approve the interim financial statements for the six-month period ended 31 October 2020. Meanwhile, shareholders as at close of trading tomorrow will be receiving a net dividend of €0.0185185 per share.
Medserv plc and MaltaPost plc also trended positively today with gains of 5.8% and 4.8% to €0.545 and €1.10 respectively albeit on light volumes. Last Friday, Medserv issued an Interim Report providing information about its financial performance during the nine-month period ended 30 September 2020. Revenues and EBITDA were substantially lower reflecting the non-recurrence of the income from a major contract registered in 2019; the negative impact of COVID-19; and the suspension of most offshore drilling activity.
The company also explained that it has significant growth potential in all operating markets whilst the business pipeline stemming from existing long-term contracts is substantial.
Commenting on the outlook, Medserv noted that it continues to adopt a dual strategy, that of securing sustainable growth through its pipeline and of strengthening its balance sheet. In fact, Medserv is actively pursuing a number of options to secure this outcome.
Low trading activity also took place in the three property-related companies Malta Properties Company plc, MIDI plc and Tigné Mall plc. MPC tumbled 4.5% to the €0.492 level whilst MIDI and Tigné Mall traded flat at €0.36 and €0.75 respectively.
HSBC Bank Malta plc held on to the €0.80 level across 17,520 shares.
The RF MGS Index trended higher for the third consecutive day as it added a further 0.02% to an eight-month high of 1,127.430 points. Sovereign bond yields in the euro area remained under downward pressure as new inflation data in Germany, Italy and Spain disappointed, thus boosting expectations that the European Central Bank will expand its stimulus measures during the upcoming monetary policy meeting which is scheduled to be held on 9 and 10 December 2020.
Meanwhile, the US Federal Reserve announced that it will be extending its various emergency lending facilities till the end of March 2021 including the Commercial Paper Funding Facility. In the medical field, Moderna asked the US Food & Drug Administration to authorise its coronavirus vaccine for emergency use. In the case that an authorisation is granted, the vaccine could start reaching Americans by 21 December.
On Monday, GAP Group plc announced that the issue of up to €21 million 3.7% secured bonds maturing between 2023 and 2025 has been oversubscribed. The company will be announcing the basis of acceptance and allocation policy to be adopted by not later than 7 December, 2020.