Four equities drag the MSE Equity Price Index lower

by 0.50% to 3,673.242 points as the declines in BOV, PG, AX Real Estate, and Malita outweighed the gains in GO. Meanwhile, five other equities closed unchanged as the total trading activity in local equities amounted to €0.04 million. Download today’s Equity Market Summary.

Bank of Valletta plc shed 1.6% to the €1.22 level on a single trade of 6,543 shares. Last Friday, BOV issued a press release confirming that Standard and Poor’s assigned a BBB-/A-3 rating while upgrading the outlook to stable. The press release noted that the international credit rating agency confirmed that it would also consider a further rating upgrade by one notch in future evaluation once the Bank registers an additional loss-absorbing capacity buffer that comfortably exceeds their 4% risk-adjusted capital ratio threshold. S&P expects BOV to maintain strong capitalisation and resilient asset quality metrics where the bank’s risk-adjusted capital ratio will be 14.3%-14.8%, supported by improving net profits and a prudent dividend policy.

PG plc was today’s most actively traded equity as it dropped by 4.9% to a 10-week low of €1.96 across three deals totalling 9,087 shares. PG is holding its Annual General Meeting on Monday 23 October.

AX Real Estate plc slumped by 10% to a one-month low of €0.45 across three trades totalling 16,667 shares.

Also in the property sector, Malita Investments plc declined by 1.7% to a three-month low of €0.58 on two trades totalling 3,500 shares. Malita partially recovered from an intraday low of €0.55 (-6.5%).

GO plc advanced by 2.2% to a one-week high of €2.80, albeit over trivial volumes.

BMIT Technologies plc and Malta Properties Company plc closed unchanged at the €0.41 and €0.392 levels respectively on muted activity.

International Hotel Investments plc traded flat at the €0.51 level as 2,000 shares changed hands.

APS Bank plc closed unchanged at the €0.60 level on a single trade of 2,000 shares.

Also in the banking sector, HSBC Bank Malta plc held the €1.16 level on one deal of 1,606 shares.

The RF MGS Index remained virtually unchanged at 853.514 points as the increase in CBM Bid Prices for short and medium-term MGS were mostly offset by a drop in bid prices for longer-dated MGS, resulting in a steeper yield curve. Data released today shows that in August the Euro Area registered the lowest-ever unemployment rate of 6.4%. Meanwhile, September manufacturing levels in the Eurozone contracted for the fifteenth consecutive month driven by a steep drop in new order inflows despite prices being charged also declining for the fifth successive month.

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.