Daily Market Reports

June 24, 2022

MSE Equity Price Index extends decline

 

The MSE Equity Price Index trended lower for the fourth consecutive day as it eased by a further 0.24% to 3,654.431 points. The drops in Lombard, APS, RS2 and Malita offset the gains in Farsons, HSBC and GO whilst another four companies closed the day unchanged. Overall trading activity in equities contracted to €0.18 million compared to €0.23 million yesterday. Download today’s Equity Market Summary.

APS Bank plc eased by 1.5% to the €0.66 level after opening at a high of €0.68. A total of 58,803 shares changed hands. Despite today’s drop, the equity still ended the week with a gain of 6.5% when compared to the IPO price of €0.62 per share.

Within the same sector, Lombard Bank Malta plc plunged 10.5% back to the €1.70 level albeit on just 1,275 shares.

Low trading activity also took place in the equity of Malita Investments plc which lost 5.1% to the €0.75 level.

A single deal of 23,225 shares forced the ordinary share price of RS2 Software plc to move 3.8% lower to the €1.52 level.

Also among the large companies by market value, HSBC Bank Malta plc rebounded by 2% to the €0.765 level across 52,661 shares.

GO plc also trended higher with a gain of 2.6% to recapture the €3.10 level after opening at a low of €3.00, although on trivial volumes.

The other positive performing equity today was Simonds Farsons Cisk plc as it advanced by 0.7% back to the €7.20 level across 1,000 shares.

Meanwhile, Bank of Valletta plc (17,000 shares) and Malta International Airport plc (635 shares) closed the day unchanged at €0.935 and €5.95 respectively.

AX Real Estate plc traded flat at the €0.56 level on a total of 54,000 shares. Yesterday, AX Real Estate published its interim financial results covering the six-month period ended 30 April 2022. The company reported a net profit of €1.67 million largely reflecting the income from the lease of its various property assets, mostly to AX Group plc. The Directors declared a net interim dividend of €0.0125 per share which is in line with the dividend policy as stated in the IPO Prospectus. The dividend is payable on 15 July to all shareholders as at close of trading on 28 June. In their commentary, the Directors provided an update on the two major projects that the company is currently pursuing – namely the refurbishment and extension of the Seashells Resort at Suncrest (which is expected to reopen for business in April 2023), as well as the development of the Verdala Hotel (to be inaugurated in 2024) and the refurbishment of the adjacent Verdala Hotel Annex. Looking ahead, AX Real Estate noted that the positive economic recovery in the tourism industry augurs well for the future as the budgeted variable rent is expected to be achieved. Furthermore, despite the enduring global supply chain challenges, AX Group has not experienced any major disruptions so far as sufficient resources are engaged to guarantee that orders are placed in time according to the programme of works. Nonetheless, cognisant of the inflationary pressures on raw materials, AX has been exploring construction methodologies to minimise the impact from cost overruns. Despite these initiatives, it is highly probable that under the current economic scenario, the capital expenditure on the Suncrest and Verdala projects will be negatively impacted.

Three deals totalling 15,000 shares left the share price of Malta Properties Company plc at the €0.50 level.

The RF MGS Index moved higher for the third consecutive day as it advanced by a further 0.2% to 939.716 points. As a result, the Index finished the week higher (+1.21%) for the first time in six weeks amid concerns that most advanced economies are heading towards a recession. On the geo-political front, the EU accepted Moldova and Ukraine as candidate countries for EU accession, as the war in Ukraine continued to intensify especially in the Donbas region. Elsewhere, today the Central Bank of Malta issued an update on the Maltese economy. The CBM noted that annual growth in business activity returned to its long-term average whilst economic sentiment remained above its long-term average despite the uncertain economic climate. Inflation increased to 5.8% in May from 5.4% in the previous month whilst the annual growth in residents’ deposits and credit 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.