Treasury announces €350 mln MGS issue

Today, the Treasury announced the issue of 2 new Malta Government Stocks for a total aggregate amount of €200 million subject to an over-allotment option of up to a further €150 million. The 2 new fixed rate stocks are the 3.50% MGS 2028 (VI) and the 4.00% MGS 2043 (I). The prices of these two new MGS’s will be announced on Thursday 16 February 2023 in the afternoon. Subscriptions for the General Public open on Monday 20 February 2023, with the possibility of applying for these stocks in multiples of €100 and up to a maximum of €499,900 (nominal) per application. For applications in excess of €500,000 (nominal), a tendering process applies. Download today’s Equity Market Summary.

The RF MGS Index moved higher for the first time in four sessions as it advanced by 0.31% to 882.162 points as yields across the eurozone sovereign bond markets fell. The German inflation rate dropped to 9.2% in January (below forecasts) from 9.6% in the previous month. Meanwhile in the US, the amount of people seeking unemployment benefits as at least week was higher than expectations, but the figure remained historically low amid a tight labour market conditions.

The MSE Equity Price Index climbed 0.38% to a 4-week high of 3,595.669 points reflecting the gains of HSBC, GO, BMIT and Hili Properties. Meanwhile, six other equities traded unchanged as total trading activity amounted to €0.32 million.

HSBC Bank Malta plc was the most actively traded equity today as it increased by 2.2% to a new 11-month high of €0.93 across sixteen trades totalling 184,419 shares having a market value of €0.17 million. HSBC’s Board of Directors is scheduled to meet on Tuesday 21 February 2023 to consider and approve the 2022 annual financial statements. The Directors will also consider the declaration of a final dividend to be recommended to the Bank’s Annual General Meeting which will be held on Thursday 20 April 2023.

Also amongst the large companies by market value, GO plc went up by 0.7% to the €2.80 level across four deals totalling 6,916 shares.

GO’s data centre and IT services subsidiary – BMIT Technologies plc – rebounded by 2.3% to the €0.45 level across three deals totalling 42,000 shares.

Hili Properties plc advanced by 4.5% to the €0.23 level across four trades totalling 35,000 shares.

Malta International Airport plc traded flat the €5.65 level across three deals totalling 2,200 shares. Today, MIA announced that its Board of Directors is scheduled to meet on Wednesday 22 February 2023 to consider and approve the financial statements for the financial year ended 31 December 2022. The Directors will also consider the declaration of a dividend.

Bank of Valletta plc closed unchanged at the €0.92 level after recovering from an intraday low of €0.895 (-2.7%) as 83,369 shares changed hands.

Also within the banking sector, APS Bank plc (3,901 shares) and Lombard Bank plc (13,856 shares) held the €0.615 and €0.92 levels respectively.

International Hotel Investments plc remained at the €0.60 level on muted volumes.

One trade of 350 shares left the share price of MaltaPost plc at the €1.08 level.

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.