Lombard reports Rights Issue uptake of 77.5%

The MSE Equity Price Index increased by 0.56% to a two-week high of 3,618.167 points as the gains in APS, HSBC, MIA, Malita, and MaltaPost outweighed the declines in GO and Malta Properties.  Meanwhile, three equities closed unchanged as total trading activity totalled €0.13 million. Download today’s Equity Market Summary.

Today, Lombard Bank Malta plc announced the result of the rights issue of 2 new shares for every 3 shares held at a price of €0.75 per share. Total subscriptions from eligible shareholders and assignees amounted to 47,911,975 new ordinary shares having a total value of €35.9 million and representing 77.5% of the shares available for subscription. These applications were accepted and allotted in full. Furthermore, existing shareholders applied for 1,485,613 shares in excess of their proportional entitlement, having a value of €1.1 million. As a result, a residual balance of 12,430,744 shares will be made available for subscription at an offer price of €0.75 through an intermediaries offer period from 1 November 2023 to 27 November 2023 at 10:00 hours, or earlier in the event of an over-subscription. Preference will be given to employees and Directors of Lombard as well as shareholders of MaltaPost plc who are not also existing shareholders of the bank.

HSBC Bank Malta plc gained 0.9% to the €1.16 level after failing to hold to an intraday high of €1.19 (3.6%) across five deals totalling 7,023 shares. Yesterday, 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.

Also in the banking sector, APS Bank plc moved 0.9% higher to the €0.575 across five trades totalling 8,200 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. Yesterday, the offer of up to €50 million 5.80% APS Bank plc unsecured subordinated bonds 2028-33 was closed ahead of schedule following oversubscription.

Malta International Airport plc advanced by 3.7% to a three-week high of €5.60 failing hold to an intraday high of €5.65 (4.7%) on two trades totalling 360 shares.

Malita Investments plc was today’s best performing equity as it surged by 15.7% to a one-month high of €0.59 shares over three deals totalling 6,100 shares.

A single trade of 2,738 shares pushed the share price of MaltaPost plc 4.7% higher to a two-month high of €0.45.

On the other hand, GO plc shed 0.7% to the €2.90 level after partially recovering from an intraday low of €2.74 (-6.2%) across eleven deals totalling 35,100 shares.

Malta Properties Company plc fell by 0.5% to a four-month low of €0.382 on one deal of 10,000 shares.

Meanwhile, Mapfre Middlesea plc and Plaza Centres plc both closed unchanged at the €1.20 and €0.65 levels respectively on muted activity.

International Hotel Investments plc closed unchanged the €0.48 level after recovering from an intraday low of €0.452 (-5.8%) across three deals totalling 4,100 shares.

The RF MGS Index increased by 0.16% to 855.823 points as eurozone sovereign bond yields continued to retract from their recent highs. Data published today showed that inflation for October in the Euro Area is expected to fall more than expected to 2.9% compared to 4.2% last month. The anticipated decline is driven by a faster decrease in energy prices as well as a slowdown in the price increases for food, alcohol and tobacco.

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.