Year-to-date trading value in BOV shares exceeds €5 million

The MSE Equity Price Index advanced by a further 0.04% to a fresh two-week high of 3,770.858 points as the gains in BOV outweighed the declines in APS, Main Street and RS2. Meanwhile, two other equities closed unchanged. Download today’s Equity Market Summary.

Bank of Valletta plc gained 1.4% to an almost one-month high of €1.44 across 22 trades totalling 278,290 shares. Following today’s heightened activity across BOV shares, the value traded in BOV shares since the start of the year amounts to €5.3 million, making it the most actively traded local equity, representing 28% of the total value traded in local equities so far in 2024. Shareholders as at the close of trading on Friday 26 April will be entitled to receive the final net dividend of €0.0455 per share subject to shareholder approval at the upcoming Annual General Meeting scheduled to be held on 31 May 2024.

Malita Investments plc and The Convenience Shop (Holding) plc both held the €0.49 and €1.05 levels respectively on trivial volumes. Malita shareholders as at the close of trading on Friday 26 April will be entitled to receive the final net dividend of €0.0185 per share subject to shareholder approval at the upcoming Annual General Meeting scheduled to be held on 13 June 2024.

On the other hand, APS Bank plc slumped by 3.6% to a one-week low of €0.54 over nine trades amounting to 17,509 shares. APS is holding a market briefing on Thursday 25 April.

The ordinary shares of RS2 plc shed 0.9% to the €1.07 level on a single deal of 1,388 shares. Yesterday evening, RS2 published its Annual Report & Financial Statements for the year ended 31 December 2023. Total revenue increased by 5.7% to a record of €39.7 million as the decline in Software (Licensing) solutions was outweighed the higher income from Processing solutions and Merchant solutions. Amid higher operating costs, RS2 achieved an operating profit of €1.70 million compared to €1.81 million in the previous financial year. Excluding depreciation and amortisation charges, EBITDA increased by 8.9% to €4.14 million. After accounting for net finance costs of €0.26 million, tax expenses of €1.39 million, and a profit of €0.56 million attributable to minority interests, the net loss attributable to the shareholders amounted to €0.51 million (2022: loss of €0.06 million).

Main Street Complex plc slumped by 5.7% to an all-time low of €0.33 on a single trade of 5,000 shares. Today, Main Street published the results for the 2023 financial year. The company reported a marginal uplift in revenue and operating profit to 0.81 million and 0.48 million respectively. Shareholders’ funds remained virtually unchanged at €10.9 million which translates into a net asset value per share of €0.564. The Directors of Main Street Complex are recommending the payment of a final net dividend of €0.011 per share to shareholders as at close of trading on 29 May 2024, subject to shareholders’ approval during the upcoming Annual General Meeting scheduled to be held on 28 May 2024.

Plaza Centres plc also published its 2023 results. Revenue advanced by 7.7% to €3.09 million and operating profit surged by 12.2% to €1.60 million. The net profit for the year attributable to shareholders amounted to €1.11 million. Shareholders’ funds rose by 2.2% (or €0.59 million) to €27.2 million which translates into a net asset value per share of €1.0675. The Directors are recommending the payment of a final net dividend of €0.0137 per share to all shareholders as at close of trading on 16 May 2024 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on Wednesday 19 June 2024.

Also today, VBL plc published its Annual Report and Financial Statements for the year ended 31 December 2023. Revenue surged by 40.1% to €3.25 million principally reflecting the growth in rental income from its property portfolio. Operating costs (net of other income) increased by 29.4% to €3.03 million as VBL incurred higher cost of sales and administrative expenses. Excluding depreciation and amortisation charges, operational EBITDA more than doubled to €0.53 million compared to €0.26 million. The financial performance was once again boosted by the net increase in fair value of investment property of €2.04 million, which however was lower than the increase of €6.87 million recorded in the previous year. The net profit for the year amounted to €1.70 million compared to €6.32 million in 2022. Net asset value per share as at 31 December 2023 amounted to €0.2626 compared to €0.2564 as at the end of 2022.

The RF MGS Index reversed yesterday’s gains as it fell by 0.26% to 890.013 points. Yesterday, both Bundesbank President Joachim Nagel and ECB Vice President Luis de Guindos indicated that the number of interest rate cuts this year will depend on services inflation data as well as the trajectory of the US federal funds rate. Meanwhile in the UK, economists are conflicted on whether interest rate cuts will happen in June or August, with services inflation data also set to be influential in determining whether an interest rate cut will happen during the current quarter.

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