Farsons falls to three-month low despite upbeat forecasts

The MSE Equity Price Index extended yesterday’s decline as it eased by 0.51% to 3,741.819 points. The declines in Farsons, IHI and HSBC outweighed the gains in APS and BOV, while two other equities remained unchanged. Trading activity amounted to €0.17 million. Download today’s Equity Market Summary.

Simonds Farsons Cisk plc shed 3.6% to a three-month low of €6.75 across six trades totalling 3,533 shares. Yesterday, Farsons published forecasts for the current year to 31 January 2024 which showed that revenues are expected to grow by a further 9.2% to a record of €129.1 million. EBITDA is anticipated to climb by 5.0% to €27.7 million, which would also be a new record high, but the EBITDA margin is anticipated to contract to 21.4% compared to 22.3% last year. Overall, Farsons expects a record net profit of €15.5 million, which translates to a return on average equity of 10.8%.

International Hotel Investments plc was today’s worst market performer as it slumped by 4.7% to an over two-year low of €0.505 level on a single deal of 8,353 shares.

HSBC Bank Malta plc closed 1.6% lower to the €1.20 level after partially recovering from an intra-day low of €1.15 (-5.7%) across five trades totalling 21,700 shares.

In contrast, today’s most actively traded equity – Bank of Valletta plc – gained 0.8% to the €1.23 level as 72,443 shares changed hands.

Also in the banking sector, APS Bank plc moved 1.7% higher to the €0.61 level on two trades totalling 2,000 shares.

Malta International Airport plc closed unchanged at the €5.60 level after opening at a low of €5.55. A total of 3,320 shares changed hands.

A single trade of 7,540 shares left the share price of Mapfre Middlesea plc at the €1.51 level.

The RF MGS Index rebounded by 0.96% to a one-week high of 869.289 points. The upward movement in prices reflects the downward movement in bond yields across the eurozone following yesterday’s lower-than-expected inflation data in the US. Furthermore, data published today showed that producer prices in the US are also increasing at a slower pace while the labour market remained strong.

 

This report contains public information only and is not to be construed as investment advice or an offer to buy or sell any securities. Information contained herein is based on data obtained from sources considered to be reliable, but no representations or guarantees are made with regard to the accuracy of the data. Stock markets are volatile and subject to fluctuations which cannot be reasonably foreseen. Past performance is not necessarily indicative of future results. Rizzo, Farrugia & Co. (Stockbrokers) Limited is a company licensed to undertake investment services in Malta by the MFSA under the Investment Services Act, Cap. 370 of the Laws of Malta and a member of the Malta Stock Exchange.