The MSE Equity Price Index on Wednesday erased some of Tuesday's strong uplift as it retracted by 0.38% to 3,770.189 points. The declines in GO, HSBC, BOV and MPC outweighed the gains in BMIT and GlobalCapital whilst MIA and PG traded flat. Trading activity improved to €0.17 million largely on the back of increased volumes in MPC.
Malta Properties Company plc eased by 0.9% back to the €0.54 level on a total of 200,000 shares having a market value of €0.11 million. On Monday, 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 its business model is resilient to the prevailing economic uncertainties and that it is continuing to pursue activities aimed at delivering additional shareholder value through the maximisation of its current property portfolio as well as extrinsic growth.
In the retail banking sector, HSBC Bank Malta plc (3,020 shares) and Bank of Valletta plc (9,870 shares) trended 1.2% and 0.6% lower to €0.84 and €0.944 respectively.
The worst performing equity today was GO plc as it shed 2.4% to the €3.28 level across 3,326 shares. Last Friday, GO published its interim financial results reflecting an encouraging 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.
GO’s data centre subsidiary – BMIT Technologies plc – added 0.4% to regain the €0.48 level on eight deals totalling 56,636 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.
Following Tuesday's upsurge of almost 30%, GlobalCapital plc climbed by a further 5% to a new multi-year high of €0.53 across 5,995 shares.
Meanwhile, a single deal of 2,430 shares left the equity of PG plc at the €1.90 level. The company is soon expected to publish its full-year results for the financial year ended 30 April 2020.
Malta International Airport plc retained the €4.80 level across 1,665 shares.
Tuesday's rebound in the RF MGS Index was short-lived as it resumed its recent downward trend with a drop of 0.22% to 1,108.833 points. Sovereign bond yields in the euro area inched higher despite worst than expected inflation data in Italy as well as softer monthly increase in industrial production in June across the single currency block. In the US, Treasury Secretary Steven Mnuchin opined that lawmakers may not be able to reach a deal on a further round of fiscal stimulus.