New MGS surges 4% on first day of trading

The RF MGS Index shed 0.53% to 887.252 points as eurozone sovereign bond yields increased despite preliminary data showing record high inflation of 10.7% in October, above market expectations. The surge in energy costs was the leading contributor to higher prices, followed by food products as well as other industrial goods. Meanwhile, the single currency bloc registered its weakest quarterly GDP growth since the start of the post-pandemic recovery during the third quarter of this year.

The new 4.00% MGS 2032 (VII) which was issued at an offer price of 100.00% started trading today and closed the session at 104.00% on robust trading value of €1.77 million nominal.

Meanwhile, the MSE Equity Price Index moved 0.25% higher to 3,666.282 points reflecting the gains in BMIT, Harvest, Lombard and the ordinary shares of RS2. Download today’s Equity Market Summary.

BMIT Technologies plc advanced by 2.6% to the €0.478 level after recovering from an all-time low of €0.442 (-5.2%). A total of 5,600 shares changed hands.

Also in the technology sector, Harvest Technology plc surged by 13% to the €1.47 level across two trades of 525 shares.

The ordinary shares of RS2 Software plc rose by 1.5% to the €1.38 level after opening at an over three-year low of €1.27 (-6.6%).

Lombard Bank Malta plc added 0.5% to the €1.96 level, albeit on trivial volumes. Lombard is holding an Extraordinary General Meeting on Thursday 10 November ahead of a new equity raise of circa €50 million.

Also in the retail banking sector, APS Bank plc held the €0.625 level on a single trade of 750 shares. Last week, APS published a quarterly update last week showing growth in net interest income (+15% to €46.7 million) but incurred a loss of €8.41 million in relation to the performance of APS Funds SICAV. Overall, the APS Group reported a net profit of €0.9 million for the nine-month period.

Malta International Airport plc was today’s most actively traded equity as it remained at the €5.80 level on four deals totalling 15,000 shares, having a market value of just under €0.1 million.

Malta Properties Company plc retained the €0.498 level on muted volumes. Last Friday, MPC published a Quarterly Update covering the nine-month period ended 30 September 2022 compared to the same period in 2021. Revenue surged by 11.3% to €3.04 million (Jan-Sep 2021: €2.73 million) reflecting the initial income from the Zejtun property and contributions from the MIB Buidling in Ta’ Xbiex which was acquired earlier this year. The Zejtun property is expected to be fully handed over to its tenant GO plc by the end of 2022. MPC improved its operating profit by 19.3% to €2.21 million (Jan-Sep 2021: €1.85 million), which in turn translates into a higher EBIT margin of 72.6% compared to 67.7% in the same period last year. However, in view of lower fair value gains as well as deferred tax related to the acquisition of the Ta’ Xbiex property, MPC registered a net profit for the period of €1.28 million, which is lower than the €2.56 million figure of last 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.