Five equities pull the MSE Equity Price Index lower

The MSE Equity Price Index fell by 1.08% to 3,742.950 points as the declines in BOV, HSBC, Lombard, MIA and Tigné Mall outweighed the gains in APS, PG and MIDI. Today’s trading activity in local equities amounted to €0.08 million. Download today’s Equity Market Summary.

Bank of Valletta plc dropped by 3.4% to €1.41 across four deals totalling 13,810 shares. Today, BOV started trading without the entitlement for the final net dividend of €0.0455 per share.

Also in the banking sector, HSBC Bank Malta plc shed 2.8% to a one-month low of €1.37 as 770 shares changed hands.

Lombard Bank Malta plc slid by 4.9% to an almost five-month low of €0.77 level across four deals amounting to 26,784 shares. Last Friday, Lombard published its Annual Report and Financial Statements for the year ended 31 December 2023. Net interest income surged by 16.1% to a record of €25.9 million. Total operating costs increased by 14.5% to €54.7 million reflecting the higher level of business. When adjusting the comparative figures to exclude the significant one-time reversals in expected credit losses in 2022, profit before tax rose by 17%. The net profit attributable to shareholders amounted to €9.06 million which translates into a return on average equity of 5.55%. Shareholders’ funds increased by 39.8% to €190.4 million, reflecting the proceeds raised from the Rights Issue that was concluded towards the end of 2023. Consequently, the net asset value per share dropped to €1.2317 compared to €1.4687 as at the end of 2022 (adjusted for the 2023 bonus issue). The Directors of Lombard are recommending a final net dividend per share of €0.0106 to all shareholders as at the close of trading on 24 May 2024, subject to regulatory approval as well as shareholders’ approval during the upcoming Annual General Meeting scheduled to be held on 27 June 2024.

Malta International Airport plc moved 0.9% lower to a fresh seven-week low of €5.60 across ten trades totalling 5,984 shares.

Tigné Mall plc dropped by 0.6% to the €0.82 level on muted activity.

APS Bank plc gained 0.9% to the €0.57 level on four deals amounting to 11,994 shares. Last Thursday, APS published a quarterly financial update and hosted an online market briefing. The 2023 first quarter figures, when compared to the first quarter of 2022 showed that net interest income dropped by 9% to €16.7 million as the growth in gross interest income was offset by higher interest expenses. The financial performance was also dented by declines in the fair value of financial investments held within the APS Diversified Bond Fund in contrast to gains recognised in the same period last year. Operating profit amounted to €4.5 million compared to €7.6 million in the first quarter of 2022. The net asset value per share as at 31 March 2024 stood at €0.728.

MIDI plc advanced by 3.6% to the €0.23 level, albeit over trivial volumes. Last Friday, MIDI published its 2023 results. Revenue surged by 19.2% to €4.07 million. MIDI reported an operating loss of €1.1 million compared to the loss of €1.4 million last year. MIDI’s total equity at the end of 2023 stood at €99.3 million which translates into a net asset value per share of €0.4638. The Directors of MIDI are recommending the payment of a final net dividend of €0.009 per share to shareholders as at close of trading on 24 May 2024, subject to shareholders’ approval during the upcoming Annual General Meeting scheduled to be held on 27 June 2024.

A single trade of 250 shares pushed the share price of PG plc 1.0% higher to the €1.98 level.

The RF MGS Index reversed some of last week’s decline as it rose by 0.41% to 888.711 points. Inflation in Germany during April is expected at 2.4% compared to 2.3% in March and contrasting previous projections of a flat reading. Nonetheless, core inflation is expected to dip to 3% compared to 3.3% in March, which is the lowest level in over two years. Similarly, Spain also reported an unexpected uptick in inflation to 3.4% during April from 3.3% in the previous month, but the Spanish core inflation in April is expected to slow down to 2.9% from 3.3%.

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.