The share index extended yesterday’s decline by a further 0.43 per cent to 4,426.111 points on low volumes. The declines in RS2, BOV and Medserv outweighed the marginal gain registered in the equity of Mapfre Middlesea. Week-on-week, the index posted a gain of 0.22 per cente.
Three deals totalling 6,581 shares dragged the equity of RS2 Software 2.6 per cent lower to a fresh seven-month low of €1.85. Yesterday evening, RS2 published its interim results covering the first six months of 2016 showing a marginal decline in revenue and a 46.8 per cent reduction in post-tax profits attributable to shareholders of €2.5 million.
The results were particularly impacted by a surge in the cost base in support of the planned international growth and adverse foreign exchange movements. RS2 explained that the company’s business continues to be on a strong growth trajectory with a good pipeline of opportunities across all markets and business lines.
Also among the large companies, Bank of Valletta retracted back to the €2.20 level (-1.1 per cent) across 10,659 shares.
The other negative performing equity today was Medserv which slipped by 0.6 per cent to the €1.77 level on volumes totalling 14,500 shares. The oil and gas logistics specialist is due to publish its interim results on August 26.
On the other hand, Mapfre Middlesea recaptured the €2.05 level (+0.5 per cent) on low volumes.
GO also registered weak trading activity. A single deal of just 600 shares was executed at the 11-week high of €2.92. On Tuesday GO revealed that during the first six months of the year it posted a pre-tax profit figure of €17.1 million, which is 31.3 per cent higher than the corresponding period last year.
The company’s results were positively impacted by a gain of €6.1 million arising from the acquisition of a subsidiary. Eliminating this one-off gain, EBITDA still improved by 19 per cent to €29.9 million.
FIMBank managed to close unchanged at the 98cUS level despite touching an intra-day low of 95c9US (-2.1 per cent). A total of 11,430 FIMBank shares changed hands today.
On Wednesday, the trade finance specialist revealed its interim results showing a net profit figure of $1.1 million which contrasts sharply with the $8 million loss suffered during the first six months of 2015.
This achievement came on the back of a notable reduction in non-interest expenses and a substantial decrease in impairment allowances. The directors of FIMBank stated that they remain committed at guiding the bank in its turnaround strategy.
This morning, Tigné Mall pc published its interim results covering the six months ended June 30, showing a 19.1 per cent jump in post-tax profits to €0.81 million.
The directors declared a net interim dividend of 1c25 per share, representing a 25 per cent increase over last year’s interim dividend. This will be paid on September 16 to all shareholders as at close of trading on August 18.
The directors also commented that they expect the level of activity registered during the first half of the year to be maintained during the latter half of 2016. The equity remained inactive today.
On the bond market, the RF MGS Index halted a three-day positive streak as it retreated by 0.02 per cent from its 16-month high of yesterday to 1,161.937 points today.
Notwithstanding the overall decline in the index, the indicative bid prices of the Central Bank of Malta for six Malta Government Stocks still reached new highs once again today, including the longer-dated MGSs issued last February which advanced by one basis point to 107.34 per cent.
On the economic front, fresh data issued today showed that economic growth in the euro zone fell to its slowest pace since mid-2015, expanding by just 0.3 per cent in the second quarter down from a 0.6 per cent growth rate in the first three months of the year.
Trading activity resumes on Tuesday.
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