MPC expects further improvement in operating profit

The MSE Equity Price Index eased by 0.14% to 3,752.076 points as the gains in MPC, Lombard, and M&Z were offset by the declines in BOV and Santumas. Meanwhile, two other equities ended the session unchanged. Trading activity in equities improved to the highest level in four sessions of €0.12 million. Download today’s Equity Market Summary.

Malta Properties Company plc surged by 14.1% to the €0.34 level across three deals totalling 5,687 shares. MPC held its Annual General Meeting today and also published its updated forecasts for 2024. Revenues are expected to increase by 10.9% to a record of €5.56 million driven by the first full-year rental income from current tenants at The Exchange and new tenants at the Ta’ Xbiex property as it became fully occupied at the end of the first quarter of 2024. Operating profit is anticipated to increase by 5% to €3.61 million, but the EBIT margin is expected to ease to 64.9% (2023: 68.6%) reflecting higher levels of administrative expenses. Finance costs are forecasted to drop by 3.5% to €1.04 million, as the company expects to continue reducing its bank borrowings.

M&Z plc advanced by 3.3% to the €0.62 level on four trades totalling 8,200 shares. Yesterday, M&Z published the agenda of its forthcoming Annual General Meeting to be held on 11 June 2024, which included an extraordinary resolution to approve a share buyback programme. The circular to shareholders explained that the Board is seeking to be empowered to buy back up to 500,000 shares at a fixed price of €0.60. The buyback programme is to be funded entirely out of the company’s cash reserves and is aimed to provide the company with a tool to manage its capital more efficiently.

A single trade of 3,800 shares pushed the share price of Lombard Bank Malta plc 0.6% higher to the €0.785 level.

Malta International Airport plc closed unchanged at the €5.70 level after recovering from an intraday low of €5.65 (-0.9%) across eight deals totalling 6,367 shares.

HSBC Bank Malta plc traded flat at the €1.41 level across volumes of 4,056 shares.

Also in the banking sector, Bank of Valletta plc erased some of yesterday’s gains as it fell by 1.4% to the €1.40 level across three deals amounting to 51,464 shares.

Santumas Shareholdings plc shed 4.4% to the €1.29 level on trivial volumes.

The RF MGS Index moved 0.22% lower to 889.672 points as eurozone sovereign bond yields increased further across the yield curve. In the UK, the inflation rate dropped to a three-year low of 2.3% in April, but the figure was higher than market expectations of 2.1%. The lower inflation level was due to lower gas and electricity prices as well as a reduction in the pace of price increases for food and recreational services.

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.