Trading activity in local equities exceeds €1 million

The MSE Equity Price Index advanced by a further 0.1% to a fresh two-week high of 3,742.868 points as the gains in MaltaPost, Lombard and AX Real Estate outweighed the declines in BMIT, BOV and FIMBank. Meanwhile, ten other equities closed unchanged as the total trading activity surged to an over three-year high of €1.03 million. Download today’s Equity Market Summary.

RS2 Software plc was today’s most actively traded equity. The ordinary shares of RS2 closed unchanged at the €1.35 level after recovering from an intraday low of €1.34 (-0.7%) as 150,000 shares changed hands, having a market value of €0.2 million. Robust trading activity also took place across the preference shares of RS2, which closed unchanged at the €1.43 level across volumes totalling 100,000 shares.

Also among the large companies by market value, Malta International Airport plc closed unchanged at the €5.50 level after failing to hold to an intraday high of €5.55 (+0.9%) across nine trades totalling 30,844 shares.

GO plc held the €3.00 level across two deals totalling 60,000 shares.

HSBC Bank Malta plc (54,377 shares) and Simonds Farsons Cisk plc (1,189 shares) traded flat at the €1.20 and €7.00 levels respectively.

VBL plc remained at the €0.208 level on one deal of 125,000 shares. Last Friday, VBL announced that it has identified a number of potential private investors which have shown an interest in the subscription of new shares with a view of raising new equity on a private placement basis for a total subscription value of up to €1 million.

Also in the property sector, MIDI plc (7,500 shares) and Malta Properties Company plc ( 1,000 shares) stayed at the €0.25 and €0.382 levels respectively.

A single trade of 1,528 shares left the share price of Mapfre Middlesea plc at the €1.51 level.

AX Real Estate plc surged by 9.8% to a three-month high of €0.494 on a single trade of 50,000 shares. On Monday evening, AX Real Estate published its interim financial results covering the six-month period ended 30 April 2023. Rental revenues increased by 6.2% to €3.84 million, reflecting higher income from the leasing of the company’s various properties. Nonetheless, overall revenues declined by 11.7% as the Group had generated €0.73 million from a sale of property in the same period last year. Operating profit eased by 1.9% to €3.30 million (H1 2022: €3.37 million). The Statement of Financial Position as at 30 April 2023 compared to 31 October 2022 shows that total assets increased by 2.5% to €294.1 million. Total liabilities increased by 6.5% to €154.2 million, with total debt amounting to €124.7 million compared to €116.4 million as at 31 October 2023. Overall, total equity stood at €139.9 million (31 October 2022: €142.0 million) which translates to a net asset value per share of €0.5099 (31 October 2022: €0.5177).

Lombard Bank Malta plc advanced by 8.9% to the €0.98 level on trivial volumes.

Lombard’s subsidiary MaltaPost plc also increased by 9.5% to the €0.46 level on minimal trading activity.

In contrast, BMIT Technologies plc dropped 2.3% to the €0.42 level across seven trades totalling 109,975 shares.

Bank of Valletta plc eased by 0.8% to the €1.20 level across five trades totalling 127,492 shares.

Also within the banking sector, FIMBank plc shed 2.6% to a 10-month low of USD0.185 on a single trade of 15,362 shares.

The RF MGS Index erased yesterday’s gains as it fell by 0.15% to 874.275 points. Yesterday, the ECB’s Chief Economist Philip Lane warned that the markets are wrong in expecting rate cuts within the next two years. He explained that policymakers will need to keep monetary conditions in restrictive territory for a longer period than market analysts seem to be expecting. Meanwhile, in the US, Fed chair Jerome Powell stated that interest rates may need to rise again this year, but the Fed’s policy tightening is unlikely to result in a recession since the US economy remains resilient.

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.