The MSE Equity Price Index edged higher for the third consecutive session with a rise of a further 0.1% to 4,457.895 points largely due to the gains in HSBC and RS2 which offset declines in four other equities. Trading activity improved on Wednesday as almost €0.55 million worth of shares changed hands.
RS2 Software plc trended in positive territory for the third successive trading session with a jump of a further 7.7% to recapture the €1.40 level for the first time since late April 2018. A total of 58,509 shares changed hands across 13 deals. Earlier this week, the company published an Interim Directors’ Statement highlighting the strong business pipeline across all its geographical markets as well as in both its business lines (namely licensing and managed services).
Apart from contracted business which is currently being implemented, the announcement refers to potential prospects in Northern Europe for both managed services and licensing, a solid pipeline including Tier-1 financial institutions in North America and potential licence sales as well as managed services contracts with prospective Pan-Asian clients.
HSBC Bank Malta plc edged 0.6% higher to close at the €1.83 level on volumes of 20,761 shares.
In the financial sector, GlobalCapital plc shares were active for the first time since 1 November. The equity jumped 23.9% higher to €0.332 albeit on insignificant volumes of 247 shares.
On the other hand, GO plc slipped by 2% back to the €3.90 level across 12,844 shares.
Similarly, Malta International Airport plc reversed some of its recent gains as it dropped by 1.7% back to the €5.80 level on low volumes of 1,528 shares.
In the property segment, both Malta Properties Company plc and Trident Estates plc retreated during Wednesday's session to €0.515 and €1.47 respectively, although on insignificant deals.
Meanwhile, Bank of Valletta plc rebounded from an intra-day low of €1.30 to end the session unchanged at the €1.32 level on strong volumes of 270,625 shares having a total value of €0.35 million. This represents 64.5% of the total value traded.
Also, Plaza Centres plc maintained the €1.00 level as a further 15,860 shares changed hands.
The only other active equity was Mapfre Middlesea plc with just 28 shares exchanged at the €1.95 level representing no change from the previous closing price.
On Wednesday morning, PG plc published its interim results covering the six months ended October 31, 2018. During this period the group registered a 12.1% increase in net profit to €4.14 million as the growth registered in the group’s supermarket and associated retail operations offset the decline in revenue following the closure of the Zara outlet in Sliema to undertake an extensive refurbishment and expansion project. Going forward, the directors are now cautiously optimistic that the group will deliver improved results for the full financial year ending April 30, 2019 when compared to the previous financial year while focusing on new initiatives for the future. Despite this important announcement, the equity of PG plc remained inactive during the trading session.
The RF MGS Index advanced by a further 0.22% to reach a fresh 17-week high of 1,093.712 points largely reflecting the sharp correction in the Italian 10-year yield which fell below the 2.8% level for the first time in three months. This morning Italian yields trended lower on rumours that the coalition government reached an agreement with the European Commission over its proposed budget measures for 2019. These rumours were later confirmed through an official announcement with sovereign yields continuing to decline (rising bond prices) as this uncertainty is now cleared. Nonetheless, Italy is still expected to register a budget deficit in 2019 and Commission Vice President Valdis Dombrovskis stated that the budget is not ideal and does not provide a long-term solution to Italy’s economic challenges.
Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results.