The Malta Stock Exchange Equity Price Index slid 1.2% on Thursday to 3,663.583 points - the lowest level recorded since March 2015, on the back of a sharp drop in GO as well as declines in RS2, PG and Mapfre Middlesea.

On the other hand, Lombard Bank Malta plc edged higher whilst a further five equities ended the day unchanged.

Trading activity somewhat improved as €0.08 million worth of equities changed hands. GO plc slumped 4.2% back to the €3.22 level for the first since December 2016 albeit on a single trade of just 963 shares.

Similarly, RS2 Software plc drifted 0.9% lower to €2.28 on a single deal of 500 shares. This morning, RS2 published its 2020 interim results revealing a pre-tax loss of just over €3 million largely reflecting the group’s continued investment in its product and services as well as in connection with its expansion plans particularly in the US supported by a robust business pipeline.

RS2 expressed its confidence about achieving operational targets which also include the onboarding of a leading New York Stock Exchange listed bank ranking among the global top ten banks by total assets and Tier-1 capital. This new managed service agreement has started generating revenues and will allow RS2 to continue on track to hit the 1 billion transaction mark by 2021 – in addition to other large acquirers being onboarded and the volume that will be ramped up in 2021.

In fact, other significant businesses are expected to start processing large volumes in Q4 2020. PG plc also trended in negative territory with a 7% slide to a fresh 19-week low of €1.75 across shallow volumes of 7,500 shares. Today PG is holding a board of directors meeting to discuss and approve for publication its full-year results covering the financial year ended 30 April 2020.

The only other negative performing equity was Mapfre Middlesea plc with a 10% plunge back to the €1.80 level for the first time since March 2018 on volumes of 5,659 shares.

On the other hand, Lombard Bank Malta plc jumped 6.4% to recapture the €2.00 level on weak volumes of 3,000 shares. This afternoon the Bank published its 2020 interim results revealing an 18.6% drop in pre-tax profits to just over €5 million reflecting an adverse impact from the prevailing COVID-19 outbreak on the group’s business.

Moreover, the directors noted continued cost pressures particularly in connection with compliance obligations at the bank. Furthermore, in view of the European Central Bank recommendation on dividend distributions by European banks, the Board has resolved to withdraw its recommendation of 23 March 2020 for the payment of a final 2019 dividend.

Simonds Farsons Cisk plc also edged 0.7% higher to close at the €7.45 level albeit on just 95 shares. Meanwhile, no changes were registered in the share price of Bank of Valletta plc at the €0.90 level (15,550 shares) and that of HSBC Bank Malta plc at the €0.80 level (15,000 shares).

Likewise, Malta International Airport plc held to its previous closing price of €4.98 across shallow activity of 4,400 shares. In the IT segment, BMIT Technologies plc traded unchanged at the €0.476 level across 9,400 shares.

Likewise, Harvest Technology plc retained the €1.46 level on just 54 shares.

In contrast to Wednesday's sharp drop, the RF MGS Index rebounded by 0.28% today to 1,105.622 points as eurozone yields trended lower ahead of a speech by US Federal Reserve Chairperson Jerome Powell being delivered this afternoon on the future monetary policy mechanism to be adopted by the US central bank going forward. As was widely anticipated the new mechanism will enable the US Federal Reserve to keep interest rates at the currently historically low levels for longer even if it temporarily overshoots its inflation target. www.rizzofarrugia.com

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