MPC reports improvement in underlying performance

The MSE Equity Price Index decreased by 0.38% to 3,604.579 points as the declines in BOV, HSBC, and MIA outweighed the gain in Farsons.  Meanwhile, APS and MaltaPost closed unchanged as total trading activity in local equities was muted at €0.09 million. Download today’s Equity Market Summary.

Today, Malta Properties Company plc issued an Interim Directors’ Statement updating the market on its performance during the nine-month period ended 30 September 2023. Revenues surged by 20.5% to €3.66 million (Jan-Sep 2022: €3.04 million) driven by the rental income of the Żejtun property as well as the commencement of rental income from the Spencer Hill property in Marsa. Operating profit increased by 24.8% to €2.75 million compared to €2.21 million during the corresponding period in 2022. The EBIT margin also improved to 75.2% (Jan-Sep 2022: 72.6%). Overall, the profit for the period amounted to €1.16 million, which is lower than the reported figure for the same period in 2022 of €1.28 million as this had been positively impacted by the fair value uplift from the sale of the Birkirkara property. Excluding fair value movements, this year’s profit is 39% higher than the comparable figure of €0.84 million.

Also today, Malita Investments plc announced that it successfully extended the Deed of Emphyteusis of sixteen properties by a further eight years. The previous agreement with the Housing Authority had been for twenty-eight years commencing on 29 December 2017. The new arrangement will now have a total term of thirty-six years, lasting until the end of 2053. Furthermore, Malita announced that it rescinded the temporary utile dominium over an 841-square-meter site in Żebbug as its development was not commercially feasible. The rescission will result in a corresponding reduction in ground rent.

Malta International Airport plc moved 0.9% lower to the €5.55 level across seven trades totalling 6,303 shares.

Bank of Valletta plc declined by 1.6% to the €1.23 level over three trades totalling 26,584 shares. BOV partially recovered from an intra-day low of €1.21 (-3.2%).

Also in the banking sector, HSBC Bank Malta plc shed 1.7% to the €1.14 level after failing to hold to an intraday high of €1.17 (+0.9%) across two deals totalling 7,100 shares. Last Monday, HSBC issued an Interim Directors’ Statement updating the market on its performance during the nine-month period ended 30 September 2023. The Bank explained that pre-tax profits surged to €100.8 million compared to €32.9 million in the same period in 2022, following IFRS 17 restatement. HSBC explained that the increase in profitability was attributable to strong interest income, improved credit quality of the loan book, and continued focus on cost management.

Simonds Farsons Cisk plc advanced by 3% to a two-month high of €6.80 on a single trade of 1,000 shares.

Meanwhile, APS Bank plc closed unchanged at the €0.575 level on one deal of 5,000 shares. Last week, APS published its financial results for the nine-month period ended 30 September in which the Group reported a record net profit for the period of €15 million. On Monday, the offer of up to €50 million 5.80% APS Bank plc unsecured subordinated bonds 2028-33 was closed ahead of schedule following oversubscription.

MaltaPost plc held the €0.45 level on muted activity.

The RF MGS Index dropped by 0.30% to 853.240 points as volatility across the eurozone sovereign bond market returned while investors wait for the outcome of today’s US Federal Reserve’s monetary policy decision announcement. Data published in the US indicated that the labour market continued to show resilience as job openings unexpectedly increased, reaching the highest level reported in the last four months.

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.