The MSE Share Index retreated by 0.36 per cent to 4,551.609 points as the declines registered by eight shares outweighed the gains in another three equities. Despite the broad trading activity, the total value of equities traded today remained on the low side as just over €226,000 worth of shares changed hands.
Among today’s negative performers, RS2 Software plc retreated by 2.1 per cent to an eight-week low of €3.70 across 12,644 shares. As from tomorrow, the equity will start trading without the entitlement to the recently recommended final net dividend of €0.0278 per share (payable on 30 June) and a bonus share issue of 1 new share for every 18 shares held.
Meanwhile, this morning RS2 issued an Interim Directors’ Statement whereby the directors gave an overview of the Company’s performance since the start of 2016 as well as its growth strategy for the future. Most notably, the Group’s US subsidiary, Transworks LLC, managed to secure a sponsorship with a bank which is essential for it to carry out its managed service business in addition to its licence offering. Furthermore, the wholly owned subsidiary RS2 Smart Processing Ltd engaged two new clients for its managed services business, namely a payment service provider (PSP) in Germany and one of the largest acquirers in Europe.
In conclusion, the Directors noted that the Group holds a very healthy business pipeline both in its licencing business and managed services as well as across different regions.
All four banks finished lower today. HSBC Bank Malta plc retreated by 0.6 per
cent to the €1.621 level across 2,384 shares. This morning, HSBC announced that its Board of Directors is scheduled to meet on 5 August to consider and approve the Group’s interim financial statements for the half-year ending 30 June 2016. The Directors will also consider the declaration of an interim dividend.
Similarly, Bank of Valletta plc (13,735 shares) and Lombard Bank Malta plc (5,000 shares) shed 0.4 per cent and 0.5 per cent to the €2.22 and €2.12 levels respectively. BOV shareholders will receive the recently declared net interim dividend of €0.0254 per share on 27 May.
A single deal of 6,500 shares pulled FIMBank plc 0.4 per cent lower from its six-year high of USD0.85 to the USD0.847 level today.
GO plc dropped by 1.4 per cent to the €3.50 level across 2,250 shares. On Monday, GO confirmed that it is now in the final stages of evaluating the binding offers from third party investors interested in acquiring the company. GO plans to select the preferred bidder by the end of the month.
Simonds Farsons Cisk plc (1,225 shares) and Medserv plc (4,300 shares) registered today’s biggest drops with each shedding 2.8 per cent to €6.219 and €1.75 respectively. Yesterday, Medserv issued an Interim Directors’ Statement and an updated Financial Analysis Summary containing the 2016 financial forecasts. Medserv is anticipating that total revenues for 2016 are to exceed those of 2015 but net profits are to remain stable at €4.63 million.
In contrast, International Hotel Investments plc rebounded by 3.2 per cent to the €0.65 level on trivial volumes. On Wednesday, IHI published an Interim Directors’ Statement revealing that it registered improved revenue and operating profit during the first quarter of 2016. The announcement also made reference to a bonus share issue of 3 new shares for every 100 shares held to those shareholders as at the close of business on 27 June 2016. The Company will hold its AGM on 9 June.
Also among the large companies, Malta International Airport plc recaptured the €4.37 level (+0.2 per cent) on volumes totalling 14,857 shares. On Tuesday, MIA announced that during the first three months of 2016 its performance was much better than expected and, following the 15.5 per cent increase in passenger traffic between January and March and the continued growth in the retail sector of the business, the Company’s revenues for the first quarter of 2016 amounted to €11.6 million (+5.1 per cent) and profits grew by 7.6 per cent to €1.46 million. The payment of the recently approved final net dividend of €0.07 per share was effected today.
Malta Properties Company plc advanced by 0.9 per cent to the €0.58 level across 12,500 shares. The Company is due to hold its AGM on 2 June.
MaltaPost plc closed unchanged at the €1.92 level across 2,673 shares.
On the bond market, the RF MGS Index suffered its largest drop in nearly six weeks as it lost 0.24 per cent to 1,144.915 points. Euro zone yields rose today following heightened expectations that the US Federal Reserve will implement a further rate hike at its next monetary policy meeting to be held on 15 June.
Indeed, the 10-year benchmark German Bund yield surged from 0.15 per cent yesterday to a high of 0.21 per cent today.
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