RF MGS Index climbs to one-year high

The RF MGS Index surged by 1.32% to 901.084 points, the highest level in the past 12 months. In fact, the Index registered the largest daily uplift since last March, reflecting the downward movement in yields following yesterday’s decision by the US Federal Reserve to hold interest rates unchanged and policymakers indicating that they will be considering rate cuts in 2024. Fed Chairman Jerome Powell acknowledged that progress on inflation has been made. Meanwhile today, the ECB also held its rates unchanged and noted that it intends to hold interest rates at sufficiently restrictive levels for as long as necessary. Furthermore, the ECB expects inflation to rebound and price pressures to remain strong, driven by increasing labour costs. The ECB’s decision increased volatility across eurozone sovereign bond yields with the German 10-year bund yield ranging from a low of 2.02% to a high of 2.15% during the day.

The MSE Equity Price Index increased by 0.48% to 3,665.323 points as the gains in APS Bank, BOV, HSBC, MIDI, and Santumas outweighed the declines in MIA and IHI. Meanwhile, five other equities closed unchanged as the total trading value in local equities amounted to €0.20 million. Download today’s Equity Market Summary.

Bank of Valletta plc moved 1.6% higher to a one-month high of €1.26 across twelve deals totalling 39,620 shares.

Also in the banking sector, HSBC Bank Malta plc advanced by 0.8% to an almost four-month high of €1.24 across four trades totalling 17,500 shares. Today, HSBC announced that following regulatory approval, it repaid the €62 million loan with HSBC Bank plc, which it had entered into on 12 December 2018 and had an early call repayment option exercisable on 14 December 2023. Last Tuesday, the bank had announced the conclusion of a new €65 million subordinated loan granted by its parent, HSBC Continental Europe, which bears an interest of 3-month EURIBOR plus a margin of 237 basis points. This loan will qualify as Tier 2 capital for the bank.

A single deal of 1,783 shares pushed the share price of APS Bank plc 1.8% higher to the €0.56 level.

MIDI plc surged by 11.5% to a seven-month high of €0.29 across four trades totalling 36,708 shares. The volume-weighted average price of the day was at €0.273 (+5%).

Santumas Shareholding plc rose by 9.4% to the €1.40, albeit on trivial volumes.

In contrast, Malta International Airport plc shed 1.8% to a three-week low of €5.60 over four deals totalling 2,785 shares.

International Hotel Investments plc slumped by 3.4% to a one-week low of €0.45 on a single trade of 4,110.

PG plc traded flat at the €2.08 level as 10,500 shares changed hands.

Tigné Mall plc held the €0.82 level on one deal of 49,000 shares.

Likewise, GO plc stayed at the €2.92 level on a single trade of 7,400 shares.

The ordinary shares of RS2 plc (3,055 shares) and Mapfre Middlesea plc (9,274 shares) closed unchanged at the €1.09 and €1.20 levels respectively.

Today, Malita Investments plc announced that during an Extraordinary General Meeting, shareholders approved all the resolutions. The resolutions include giving authority to the Board of Directors to give effect to a rights issue and subsequently allot new ordinary shares, the re-designation of Malita’s shares, the increase in the authorised share capital, as well as the replacement of the company’s Memorandum and Articles of Association. Malita also published the presentation that was delivered to shareholders present at the EGM. The presentation includes updated information with respect to the ongoing Affordable Housing Project, which is estimated to cost approximately €120 million. In this respect, Malita explained that the funding for the project is composed of €58 million in existing bank funding, an additional €30 million in bank debt with approvals in place, and the remaining €33 million is anticipated to be raised via a proposed Rights Issue in the first quarter of 2024.

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.