Daily Market Highlights (04.08.2023)

BMIT reports strong revenue growth


The MSE Equity Price Index advanced by a further 0.39% to a fresh 19-month high of 3,869.024 points as the gains in MIA, BMIT, Farsons, Trident, and BMIT outweighed the declines of Lombard and APS. Meanwhile, three other equities closed unchanged as trading activity totalled €0.17 million. Download today’s Equity Market Summary.

BMIT Technologies plc moved 2% higher to the €0.418 level as 19,500 shares changed hands. Following the close of trading, BMIT published its interim statements for the six-month period ending 30 June 2023. Revenue increased by 17.3% to €14.8 million reflecting double-digit growth across a number of revenue streams. However, profit margins were lower reflecting the shift towards cloud and managed services, which offer lower margins when compared to data centre services. In fact, the operating profit and net profit for the period remained unchanged at €4.3 million and €2.6 million respectively. In a separate announcement, BMIT stated that it will hold an EGM on 25 September 2023 in connection with the discussions with GO plc for the potential assignment and transfer of certain lease rights and obligations currently enjoyed by GO as well as the passive infrastructure used for hosting telecommunications equipment.

Malta International Airport plc advanced by 2.7% to the €5.70 level across three deals totalling 2,606 shares. On Tuesday, MIA published its interim results for the first six months of the year and also provided updated forecasts for the 2023 financial year. In the first half of the year, revenues reached a record (at the interim stage) of €53.6 million, which is 20% higher than the previous record of €44.6 million generated in the first half of 2019. EBITDA amounted to €33.4 million, which is 24.2% higher than the level of €27 million generated in the first six months of 2019. The Board of Directors declared a net interim dividend of €0.03 per share, which is the first interim dividend since 2019. The dividend is payable by not later than Friday 15 September 2023 to all shareholders as at the close of trading on Monday 21 August 2023. MIA updated its targets for the 2023 financial year: passenger movements of 7.2 million (2019: 7.31 million), revenues of €113 million (2019: €100.2 million), EBITDA of €70 million (2019: €63.2 million), net profit of €37 million (2019: €33.9 million), and capital investments of €39 million (2019: €24.9 million).

Simonds Farsons Cisk plc moved 1.4% higher to the €7.10 level on low volumes.

Trident Estates plc gained 1.5% to a three-week high of €1.35 after recovering from a low of €1.30 (-2.3%) across two trades of 5,900 shares.

Also in the property sector, Malta Properties Company plc surged by 4.6% to a two-week high of €0.408 across four trades totalling 20,000 shares.

In contrast, Lombard Bank Malta plc shed 1.1% to a one-month low of €0.89 across three trades totalling 24,500 shares.

Also in the banking sector, APS Bank plc moved 0.8% lower over four deals totalling 19,534 shares. APS shareholders as of the close of trading on 23 August 2023 will be entitled to a net interim dividend of €0.0056 per share. Shareholders can elect to receive the dividend either in cash or through the issuance of new ordinary shares at an attribution price of €0.57 per share.

GO plc traded flat at the €2.94 level across two deals totalling 12,462 shares. GO is set to publish its interim results for the six-month period ending 30 June 2023 on Monday 7 August.

Bank of Valletta plc and HSBC Bank Malta plc both closed unchanged at their four-year highs of €1.31 and €1.34 respectively. Both banks have recently released record profits for the six-month period ending June 2023.

Today, Harvest Technology plc announced that its Board of Directors is scheduled to meet on Wednesday 9 August 2023 to consider and approve the interim financial statements for the six-month period ended 30 June 2023.

The RF MGS Index dropped by 0.18% to a three-week low of 866.665 points. The drop in prices reflects an increase in yields which was reflective of the surge in other Euro Area sovereign bond yields. Indeed, today the yield of the German 10-year Bund exceeded a three-week high of 2.6%. Meanwhile, in the US, the job market is still showing signs of resilience as the unemployment rate unexpectedly decreased to 3.5% in July from 3.6% in the previous month, despite adding fewer jobs than expected during the same month.


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.