HSBC extends 3-year high after releasing Q1 Results

The MSE Equity Price Index advanced by 0.59% to a 10-month high of 3,716.181 points reflecting the gains of BOV, HSBC, Hili and PG. Meanwhile, MIA and VBL closed unchanged as overall trading activity amounted to €0.22 million. Download today’s Equity Market Summary.

HSBC Bank Malta plc moved 3.5% higher to a three-year high of €1.20 across four deals totalling 30,838 shares. Today, HSBC Bank Malta plc published a Quarterly Update providing information about its performance in Q1 2023 when compared to the same period in 2022. In this respect, HSBC reported a profit before tax of €26.5 million which is a significant rise from the €4.8 million profit reported in Q1 2022. The surge in profitability was attributed to a boost in net interest income as well as the enhanced credit quality of the bank’s loan book. Furthermore, total revenue was reported to have increased by 60% (€18.8 million) as the Bank was able to earn considerable interest on its excess liquidity as opposed to the previous year, when negative interest rates were present.  Additionally, insurance income was also boosted due to improved equity markets.

Also within the banking sector, Bank of Valletta plc advanced by a further 0.9% to a near four year-high of €1.18 as 107,992 shares changed hands.

Hili Properties plc went up by 2.7% to the €0.226 level over two trades totalling 44,500 shares.

PG plc climbed 1.1% to the €1.92 level on trivial volumes.

Meanwhile, Malta International Airport plc held onto the €5.55 level after recovering from an intraday low of 5.50 (-0.9%) over six deals totalling 7,010 shres.

VBL plc held the €0.206 level on a single deal of 45,000 shares.

The RF MGS Index recorded its strongest performance in two months as it advanced by 0.69% to 872.437 points. Within the Euro Area, preliminary estimates indicate that year-on-year inflation in Spain is set to drop to 3.2% in May 2023. This would the lowest figure registered since July 2021 and a prominently decrease from the 4.1% registered in the previous month. However, in the Eurozone, economic sentiment fell short of expectations with morale reaching its lowest level in the past 6 months. This decline was driven by a deterioration in confidence amongst manufacturers, service providers, retailers and constructors.

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.