The MSE Equity Price Index eased by 0.06% to 4,034.162 points as the drops in the share prices of RS2 and PG outweighed the gains in four other companies whilst BMIT and MIA traded unchanged. Trading activity contracted markedly to just €0.1 million compared to €0.22 million yesterday.

RS2 Software plc shed almost 3% back to the €2.00 level across 6,470 shares. Last Friday, RS2 provided a detailed update on the Group’s performance in 2020 and the expectations for the 2021 financial year.

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.

The other negative performing equity today was PG plc with a drop of 1% to the €2.04 level across 17,748 shares.

In contrast, Malta Properties Company plc rallied nearly 4% to the €0.53 level across 10,601 shares.

Simonds Farsons Cisk plc added 1.3% to the €7.65 level albeit on trivial volumes.

In the retail banking sector, Bank of Valletta plc advanced by 0.9% to the €0.948 level on volumes amounting to 16,697 shares whilst two deals totalling 11,220 shares lifted the equity of HSBC Bank Malta plc 0.6% higher back to the €0.82 level.

Also among the large companies by market value, Malta International Airport plc stayed at the €6.15 level across 1,500 shares. The board of directors of the company is scheduled to meet on 24 February to consider and approve the financial statements for 2020 and discuss the recommendation of a dividend.

BMIT Technologies plc traded flat at the €0.48 level across 17,220 shares.

The RF MGS Index trended lower for the first time in three days as it eased by 0.09% to 1,128.571 points. Concerns over the COVID-19 pandemic continued to intensify as the number of infections reached 100 million across the globe. Furthermore, delays in vaccine production and distribution added fears that it will now take longer for all countries to reach ‘herd immunity’.

On the economic front, Germany’s economy minister substantially reduced the forecast for the country’s growth this year from 4.4% to 3% as further indications showed sharper drops in consumer morale than previously anticipated.

www.rizzofarrugia.com

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