The MSE Share Index opened the week in the red as it shed 0.14% to 4,541.868 points – the third consecutive decline for the local equity benchmark. Trading activity remained subdued as only €229,000 worth of shares changed hands.
The 3.1% decline in the share price of International Hotel Investments plc weighed heavily on the Index today. The equity slipped back to the €0.63 level across 8,251 shares.
Last week, IHI published an Interim Directors’ Statement revealing that it registered improved revenue and operating profit during the first quarter of 2016. The Company will hold its AGM on 9 June. Shareholders as at 27 June will be entitled to a bonus share issue of 3 new shares for every 100 shares held.
Medserv plc lost 2.9% to €1.70 across 4,890 shares - its lowest close in nearly eight-weeks. Last Wednesday, the oil and gas logistics specialist issued an Interim Directors’ Statement and an updated Financial Analysis Summary (FAS) 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. Medserv is due to hold its AGM on Monday 30 May.
GO plc retreated by 0.9% to a five-week low of €3.45 across 4,500 shares. The quad-play telecoms operator intends to select the preferred bidder interested in acquiring the whole company by the end of the month.
Also among the large companies, Malta International Airport plc closed minimally lower at the €4.372 level (-0.1%) across 10,200 shares. Recently, MIA announced upbeat results for the first three months of the year.
MIDI plc eased by 0.3% to the €0.389 level across 10,856 shares. Shareholders will receive the payment of the recently approved net dividend of €0.007 per share on Friday 27 May.
A single deal of just 500 shares pulled the equity of Lombard bank Malta plc 0.9% lower to a fresh near eight-month low of €2.10.
In contrast, both HSBC Bank Malta plc and Bank of Valletta plc registered gains today. HSBC advanced by 1.1% to the €1.639 level across 36,236 shares whilst BOV recaptured the €2.24 level (+0.4%) on volumes totalling 19,752 shares. BOV shareholders will receive the recently declared net interim dividend of €0.0254 per share on 27 May.
Similarly, Simonds Farsons Cisk plc closed 1.3% higher as it regained the €6.30 level on shallow volumes totalling 471 shares. Shareholders as at 25 May will be entitled to receive the recently recommended final dividend of €0.0733 per share, subject to shareholders’ approval at the upcoming AGM scheduled to be held on 28 June.
Meanwhile, RS2 Software plc (9,234 shares) and Malita Investments plc (13,224 shares) closed flat at €3.50 and €0.90 respectively. Last Thursday, RS2 issued an Interim Directors’ Statement whereby the company explained that its 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, RS2’s 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. The Directors also noted that the Group holds a very healthy business pipeline both in its licencing business and managed services as well as across different regions.
On the bond market, the RF MGS Index advanced by 0.15% to an over four-week high of 1,149.287 points as euro zone yields trended lower amid disappointing economic data.
Indeed, the reading from a survey among manufacturing and services businesses within the single currency block came in lower for the month of May, hitting its lowest level in the last 16 months, suggesting that the relatively robust pace of economic growth seen in the first quarter might be at risk of losing momentum again. The 10-year benchmark German Bund yield slipped from last Friday’s high of 0.19% to a low of 0.14% today.