The MSE Equity Price Index opened the week in positive territory as it added 0.12% to 4,015.690 points. The gains in RS2, MPC and BOV outweighed the drop in HSBC whilst six companies closed unchanged. Trading activity amounted to just €0.08 million as various shares traded on negligible volumes.
RS2 Software plc rallied 3% to the €2.06 level albeit on insignificant amounts. Last Friday, RS2 provided a detailed update on the Group’s performance in 2020 and the expectations for the 2021 financial year.
In this respect, RS2 explained that despite the challenges brought about by the COVID-19 pandemic, 2020 was a successful year for the Group as it managed to secure significant revenue contracts across various regions and also transition a number of strategic clients from implementation phase to live processing.
In particular, RS2 referred to the major agreement with one of the largest banks in the US which is based on a hybrid licensing and processing model that will take RS2’s revenue generation to a new level as this client already concluded its initial implementation.
Overall, RS2 noted that it is continuing to implement and deliver its strategy around its main business pillars of growing and expanding the managed services business, ramping up the US expansion, and building its own direct acquiring business. The group reasonably expects to experience growth in consolidated results for 2021, notwithstanding the current economic challenges resulting primarily from the pandemic.
In conclusion, RS2 referred to the recent changes in its ‘Memorandum of Association’ whereby the Group increased its authorised ordinary share capital and also created a new class of preference shares. These changes will enable RS2 pursue its growth ambitions, enhance its BankWORKS® platform, make additional investments in North America and in the new acquiring business line, expand the sales force, as well as target selected M&A activities.
The group concluded by expressing its optimism for 2021 as it expects to reap the benefits on the investments made in prior years and show markable top-line growth and improved profitability in the years to come.
Also among the large companies by market value, Bank of Valletta plc advanced by 0.2% to recapture the €0.95 level across 16,478 shares.
In the property segment, Malta Properties Company plc climbed 2% higher to the €0.52 level on a total of 21,433 shares.
In contrast, Trident Estates plc retained the €1.48 level on just 600 shares.
Low trading activity also took place in the equities of Malta International Airport plc, Mapfre Middlesea plc and Harvest Technology plc which closed unchanged at €6.10, €2.10 and €1.48 respectively. The Board of Directors of MIA is scheduled to meet on 24 February to consider and approve the financial statements for 2020 and discuss the recommendation of a dividend.
PG plc traded flat at its all-time high of €2.06 across 11,000 shares.
Two deals totalling 47,485 shares left the equity of BMIT Technologies plc at the €0.48 level.
Monday's only negative performing equity, HSBC Bank Malta plc, lost 3% to the €0.815 level albeit on trivial volumes.
The RF MGS Index erased some of last Friday’s sharp drop as it rebounded by 0.07% to 1,127.123 points. The uplift in MGS prices took place as business morale in Germany slumped to a six-month low reflecting the impact of the lockdown from the second wave of the COVID-19 pandemic. Meanwhile, COVID-19 vaccine manufacturer Moderna issued a statement explaining that although its solution seems to be effective against new coronavirus variants, the company is also in the process of making a version that could be used as a booster shot against the virus.