Daily Market Highlights

August 29, 2022

IHI generates an EBITDA of over €17mln in H1

 

The MSE Equity Price Index shed 0.44% to a fresh four-month low of 3,593.666 points as the declines in BOV, HSBC, GO and MPC outweighed the gains in four other equities. Meanwhile, three other companies closed the day unchanged as overall trading activity in equities improved to €0.28 million compared to just €0.09 million last Friday. Download today’s Equity Market Summary.

International Hotel Investments plc traded flat at the €0.72 level on three deals totalling 7,093 shares. Today, IHI published its interim financial statements showing a marked rebound in business in line with the global recovery in tourism and demand for travel. In fact, revenues climbed to €95.8 million (compared to the record of €122.5 million generated in H1 2019) whilst EBITDA surged to €17.3 million (H1 2019: €27.1 million). Overall, the Group reported a net profit of €1.15 million which represents a significant turnaround compared to the net loss of €22.3 million incurred in the first half of 2021. In their commentary, the Directors explained that whilst some of the Group’s hotels are performing ahead of 2019 levels, other properties especially those that are dependent on conference business, are recovering at a slower pace but their prospects for the coming months and 2023 are encouraging. IHI also noted that works on new projects are well underway including properties located in Doha, Rome, New York, Bucharest, and Brussels. Elsewhere in Malta, the Group has submitted plans for the building of a low-lying, highly landscaped resort for the site formerly known as ‘Hal Ferh’.

Also among the large companies by market value, Malta International Airport plc closed the day unchanged at the €5.90 level after failing to hold on to an intraday high of €5.95 (+0.8%). A total of 5,500 shares traded.

The ordinary shares of RS2 Software plc remained at the €1.38 level on five deals totalling 11,000 shares.

Bank of Valletta plc was the worst performing equity today as it fell 3.5% to the €0.82 level after opening at a high of €0.87 (+2.4%). A total of 76,909 shares changed hands.

Within the same sector, HSBC Bank Malta plc dropped by 1.4% to a 21-month low of €0.72 on four deals totalling 7,039 level.

GO plc and Malta Properties Company plc moved 1.3% and 2.9% lower to €3.00 and €0.505 respectively, albeit on trivial volumes.

Meanwhile, BMIT Technologies plc was the best performing equity today as it rebounded by 2.1% to the €0.48 level on heightened activity totalling 223,707 shares having a market value of €0.11 million.

Simonds Farsons Cisk plc advanced by 2% to the €7.60 level on two deals totalling 1,071 shares.

A single deal of 10,000 shares pushed the share price of Trident Estates plc 0.7% higher to the €1.38 level.

MaltaPost plc gained 1% to recapture the €1.06 level on 27,868 shares.

The RF MGS Index dropped by 1.19% to an all-time low of 918.887 points reflecting the further sharp rise in eurozone sovereign bond yields amid stronger expectations of additional monetary policy tightening by major central banks. Indeed, the MGS 10-year yield reached 3% for the first time in over seven years. Today, the European Commission president announced that the EU is preparing emergency measures to reduce electricity prices. Meanwhile, over the weekend, a number of ECB officials hinted that monetary policy will remain tight for an extended period of time amid soaring inflation.

 

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.