RF MGS Index drops to all-time low

The RF MGS Index shed 0.32% to 859.233 points, the lowest level since the index started at 1,000 points as at the end of 2008. The decline in MGS bid prices reflects the continued increase in eurozone sovereign bond yields. Today, the German 10-year bund yield exceeded the 2.8% level while the 20-year German bund yield climbed above the 3% level, both multi-year highs. Likewise in the US, the 10-year treasury yield climbed to a 16-year high of 4.5%. Over the past weeks, major central banks noted that interest rates are anticipated to remain higher for longer as policymakers maintain tighter monetary policy conditions to tame inflation. Nonetheless, fossil fuel prices such as oil and natural gas continued to increase in the past days, adding further inflationary pressures.

The MSE Equity Price Index increased by 0.09% to 3,687.466 points as the gains in BOV, PG, and VBL outweighed the declines in GO, IHI, MaltaPost and Farsons. Meanwhile, four other equities closed unchanged as overall trading activity in local equities amounted to €0.13 million. Download today’s Equity Market Summary.

Bank of Valletta plc gained 0.8% to the €1.24 level across six trades totalling 40,900 shares. BOV recovered from an intra-day low of €1.20 (-2.4%).

PG plc advanced by 3% to a two-week high at the €2.04 level over five deals amounting to 24,600 shares.

VBL plc surged by 21.1% to an over four-month high of €0.23 on two trades totalling 18,000 shares.

In contrast, Simonds Farsons Cisk plc declined by 0.7% to a two-week low of €6.65 on a single deal of 1,130 shares.

International Hotel Investments plc shed 2% to an over two-year low of €0.50, albeit on trivial volumes.

Also on muted activity, MaltaPost plc slumped by 6.8% to a two-month low of €0.41.

GO plc shed 2.9% to a seven-month low of €2.72 over two trades totalling 1,000 shares.

Meanwhile, GO’s subsidiary BMIT Technologies plc closed unchanged at the €0.41 level across six deals totalling 32,800 shares. BMIT failed to hold onto an intra-day high of €0.418 (+2%). Today, BMIT held an Extraordinary General Meeting which approved the acquisition of certain lease rights and obligations currently enjoyed by GO as well as the passive infrastructure used for hosting telecommunications equipment. BMIT noted that the resolution was passed by a majority of 99.99% of the shareholders present and voting.

APS Bank plc held the €0.61 level on a single trade of 3,250 shares.

A single deal of 1,143 shares left the share price of Malita Investments plc unchanged at the €0.59 level.

Also in the property sector, Malta Properties Company plc held the €0.392 level on one trade of 1,000 shares.

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.