BOV climbs to 3-month high

The MSE Equity Price Index rose by 0.12% to 3,785.565 points as the gains in BOV, HSBC and FIMBank outweighed the declines in MIA and GO. Trading on the MSE resumes on Tuesday 2 April. Download today’s Equity Market Summary.

Bank of Valletta plc advanced by 0.7% to a three-month high of €1.44 across sixteen trades totalling 143,100 shares. Yesterday, BOV published its 2023 financial results. Net interest income surged by 74% to €352 million reflecting the continued growth in lending portfolios combined with rising interest rates. In contrast, BOV recorded a drop of 2.7% in non-interest income to €89 million. On the expenditure side, total operating costs increased by 9.5% to €211 million reflecting the higher levels of administrative expenses and amortisation charges. BOV’s financial performance was also boosted by the net impairment reversal of €10.5 million, which however was lower than the reversal of €49.1 million in 2022. Overall, BOV reported a record net profit of €167.9 million which translates into a return on average equity of 14.1%. BOV’s equity base expanded by 14% to €1.27 billion which translates into a net asset value of €2.171 per share. The Board of Directors is recommending a final net dividend of €0.0455 per share to all shareholders as at close of trading on 26 April 2024 subject to regulatory approval and approval by the Annual General Meeting scheduled for 31 May 2024. Coupled with the net interim dividend of €0.0300 per share paid in December 2023, the total net dividend attributable for the 2023 financial year amounts to €0.0755 per share, which represents a payout ratio of 26.3%.

Also in the banking sector, HSBC Bank Malta plc moved 0.7% higher to the €1.36 level over six deals totalling 42,048 shares.

FIMBank plc rebounded by 16% to the USD0.18 level on one deal of 64,923 shares.

In contrast, Malta International Airport plc shed 2.6% to a three-week low of €5.70 across seven trades amounting to 26,187 shares.

GO plc shed 1.3% to a one-week low of €3.04 as 5,270 shares changed hands. Yesterday, GO plc announced that it has signed a share purchase agreement for the acquisition of a 51% equity stake in AQS Med Limited for a consideration of €1.2 million with the possibility of a further €2 million earnout depending on the performance of AQS over a five-year period. The transaction is still subject to a number of conditions being satisfied. GO explained that AQS operates within the renewable energy sector and is a local market leader having been entrusted with some of the largest installations on the island. The Company stated that the transaction underlines its commitment to renewable energy.

Today, The Convenience Shop (Holding) plc published its 2023 financial results. Revenue increased by 10% to €46.7 million but operating profit remained virtually unchanged at €3 million. However, the financial performance was boosted by higher levels of other income and lower finance costs. As a result, profit before tax increased by 20% to €3.1 million and profits attributable to shareholders amounted to €2.6 million (2022: €1.9 million). The Board of Directors is recommending a final net dividend of €0.036 per share to all shareholders as at close of trading on 26 March 2024 subject to by the Annual General Meeting scheduled for 29 April 2024. Coupled with the net interim dividend of €0.015 per share paid in September 2023, the total net dividend attributable for the 2023 financial year amounts to €0.051 per share.

The RF MGS Index remained virtually unchanged at 898.427 points. Data released today showed that retail sales in Germany during February fell by 2.7% which was a larger than the expected contraction of 0.8%. Meanwhile in the US, GDP growth during the last quarter of 2023 was revised 0.2 percentage points higher to 3.4%. Furthermore, the number of people filing for unemployment in the US during the last week was less than expected. Nonetheless, continuing claims still rose by more than expected to reach €1.82 million which was the highest level since the third week of January.

Today, the Central Bank of Malta released an economic update which indicated that price expectations decreased across the majority of sectors. Malta’s inflation rate during February fell to 3.0%. while the Retail Price Index fell to 2.3%, the lowest reading since September 2021.