Following the declines in the previous two trading sessions, the MSE Equity Price Index rebounded by 0.35% to 4,842.296 points.

Activity was spread across various equities, although most of today’s trading took place in BOV and RS2 as volumes in these two shares amounted to just over €0.3 million representing nearly 70% of today’s total value of equities traded.

Following last week’s drop of 4%, the equity of Bank of Valletta plc rebounded by 1.4% to regain the €1.09 level across 190,086 shares having a market value of €0.2 million. Last week, S&P downgraded its long-term rating on BOV to “BBB-“ with a ‘stable’ outlook. Moreover, the bank published its interim financial results showing a considerable drop in profitability largely due to a substantial rise in costs as well as the non-recurrence of favourable reversal of loan impairments. Whilst not declaring an interim dividend, BOV explained that the recommendation of a final cash dividend will be revisited at the end of this financial year in line with developments taking place in the second half of the year.

Positive sentiment towards RS2 Software plc continued to lift the equity to new highs. The share price ended today’s trading session at the €1.96 level (+1%) on sustained high activity totalling 53,040 shares.

HSBC Bank Malta plc published its interim financial results with the bank reporting a near 30% increase in pre-tax profits to €20.9 million, largely on the back on an expected credit release of €1.04 million compared to a charge of €3.36 million in H1 2018. The bank slashed its net interim dividend payment to €0.0111 per share. Commenting on the outlook of the bank, HSBC Malta’s CEO Mr Andrew Beane explained that strategically, the bank is now focused on delivering a world-class customer service to support growth. The bank also commented positively on the actions currently being taken by the local authorities to reform corporate insolvency practices. In this respect, HSBC Malta explained that its capacity to better use its capital to support lending into the economy and, if appropriate, distribute higher dividends will significantly increase once such reforms are concluded. HSBC’s equity ended the day 1.3% higher at the €1.54 level on low volumes totalling 7,799 shares.

Also among the large companies, Malta International Airport plc advanced 2% to recapture the €7.75 level across 1,410 shares. Shareholders as at the close of trading on 19 August will be entitled to receive a net interim dividend of €0.03 per share.

A single deal of just 4,000 shares lifted the equity of PG plc 1.9% higher to the €1.63 level.

Tigné Mall plc soared 3.4% to the €0.91 level on trivial activity. The company is due to publish its interim financial results on 30 August.

Within the same segment, MIDI plc (51,804 shares) and Malita Investments plc (22,429 shares) ended unchanged at €0.65 and €0.855. MIDI’s interim financial results are due to be published on 21 August.

Main Street Complex plc opened at a new low of €0.56 (-8.2%) before recovering to close flat at the €0.61 level on a total of just 9,700 shares.

Simonds Farsons Cisk plc retained the €10.00 level on insignificant volumes.

Meanwhile, Mapfre Middlesea plc was the worst performing equity today with a plunge of 8.2% to the €2.02 level across 6,788 shares.

A single deal of 40,000 shares forced the equity of Malta Properties Company plc to retract by 2.2% to the €0.68 level. MPC is due to publish its interim financial results on 12 August.

BMIT Technologies plc also trended in negative territory today with a drop of 1.9% to the €0.525 level across 29,899 shares. Tomorrow, BMIT is scheduled to hold an EGM in relation to the acquisition of the Handaq data centre. On Thursday 8 August, the company will also publish its interim financial results.

The RF MGS Index opened the week significantly higher as it surged by 0.56% (the sharpest daily uplift in two-and-a-half years) to 1,166.575 points – the highest level since early November 2016. Several prices of Malta Government Stocks reached new all-time highs as bond yields across the world tumbled amid an abrupt escalation in the trade dispute between the US and China. This was also accompanied by the issuance of negative purchasing managers' index (“PMI”) readings in Europe, as well as a substantial drop in an index gauging investor confidence to the lowest level in nearly five years.

www.rizzofarrugia.com

Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results.

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