MSE Equity Price Index climbs to 2-week high

The MSE Equity Price Index increased by 0.39% to a 2-week high of 3,716.891 points as the gains in HSBC, Lombard, MIA, MPC, and VBL outweighed the declines in Hili Properties, Malita, PG and the preference shares of RS2. Meanwhile, two equities closed unchanged with trading activity in local equities being muted at just €0.08 million. Download today’s Equity Market Summary.

VBL plc surged by 25% to an almost six-month high of €0.228 across five trades amounting to 27,720 shares. Last week, VBL announced that the Directors are recommending the payment of a final net dividend of €0.000803 per share (FY 2022: €0.000726) to all shareholders as at the close of trading on 24 June 2024, subject to approval at the upcoming Annual General Meeting scheduled for 26 July 2024.

Also in the property sector, Malta Properties Company plc rose by 12.6% to the €0.34 level on two deals totalling 2,016 shares.

Lombard Bank Malta plc advanced by 4.0% to a two-week high of €0.78 on one deal of 2,600 shares.

Also in the banking sector, HSBC Bank Malta plc moved 0.7% higher to a one-month high of €1.43 on a single trade of 923 shares.

Malta International Airport plc increased by 0.9% to the €5.70 level albeit on trivial volumes.

In contrast, Hili Properties plc slumped by 9.5% to a one-month low of €0.19 as 6,790 shares changed hands. Shareholders of Hili Properties as at the close of trading on Friday 21 June will be entitled for a final net dividend of €0.0108 per share, subject to approval at the upcoming Annual General Meeting to be held on Tuesday 25 June 2024.

A single trade of 5,000 shares pulled the share price of Malita Investments plc 0.4% lower to the €0.478 level.

PG plc fell by 1.0% to the €1.96 level on muted activity.

The preference shares of RS2 plc shed 2.2% to an all-time low of €0.89 on one trade of 44,900 shares.

Meanwhile, the ordinary shares of RS2 plc held the €0.90 level on minimal activity.

Bank of Valletta plc closed unchanged at the €1.41 level after recovering from an intraday low of €1.39 (-1.4%) across eight trades amounting to 14,504 shares.

The RF MGS Index fell by 0.78% to 885.889 points, the largest daily decline in over five months, reflecting the increase in eurozone sovereign bond yields. In fact, the German 10-year bund yield also rose to over 2.67% compared to a low of 2.50% last week. Last Friday, ECB president Christine Lagarde commented that despite the ECB’s decision to cut rates on the previous day, further cuts are not guaranteed due to potential difficulties in squeezing out inflation going forward. The euro area yields were also potentially influenced by the political uncertainties that emerged following the European Parliament elections, particularly in France, Italy, and Germany. In this context, French President Emmanuel Macron called a snap general election. Elsewhere in the US, data released last Friday showed that the labour market was more resilient than anticipated. Notably, both the number of new jobs added and the wage growth in May exceeded forecasts.

Today, the Central Bank of Malta published updated economic forecasts for the next three years. The economy is expected to grow by 4.3% in 2024 and 3.5% in both 2025 and 2026. Notably, 2024 and 2025 saw a slight downward revision in forecasts. Domestic demand and net exports are anticipated to be the main growth drivers. Furthermore, employment growth is projected to moderate whilst the average wage is forecasted to grow at a faster rate. Meanwhile, inflation is expected to drop to 2.4% in 2024 from 5.6% in 2023 and is projected to reach 1.9% by 2026. Inflation expectations for 2024 were revised downwards by 0.5 percentage points reflecting an unanticipated rapid decline in inflation during the first months of the year.

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.