Daily Market Highlights (01.06.2022)
IHI & Farsons drive the MSE Equity Price Index higher
The MSE Equity Price Index rebounded by 0.71% to 3,725.853 points as the gains in IHI, Farsons, BMIT and Santumas Shareholdings outweighed the declines in three other companies. Meanwhile, GO, PG, Hili Properties and Mapfre Middlesea closed the day unchanged. Overall, trading activity in equities improved to €0.14 million compared to €0.08 million yesterday. Download today’s Equity Market Summary.
International Hotel Investments plc added 4.3% to recapture the €0.73 level across 91,288 shares.
Simonds Farsons Cisk plc surged by 8.5% to the €8.95 level on a total of 788 shares. Shareholders as at close of trading today will receive a final net dividend of €0.1333 per share and a bonus share of one share for every five shares held.
Santumas Shareholdings plc also finished notably higher at the €1.15 level (+5.5%) albeit on trivial volumes.
The other positive performing equity today was BMIT Technologies plc with a gain of 1.7% to the €0.484 level across 14,000 shares.
BMIT’s parent company – GO plc – stayed at the €3.18 level across 3,125 shares.
A single deal of just 563 shares left the share price of PG plc at the €2.24 level.
Low trading activity also took place in the equities of Hili Properties Company plc (18,000 shares) and Mapfre Middlesea plc (1,000 shares) which remained at €0.24 and €1.93 respectively.
Meanwhile, HSBC Bank Malta plc drifted 2.6% lower to the €0.75 level across 38,630 shares. Yesterday, HSBC published a Quarterly Update showing that in Q1 2022 it generated a profit before tax of €4.8 million compared to €9.9 million in Q1 2021. The drop in profitability was largely driven by adverse market movements which significantly impacted the contribution from the insurance subsidiary. Furthermore, net interest income also decreased reflecting a marginal contraction in the size of the bank’s loan book, tighter margins, as well as a notable increase in customer deposits. On the other hand, HSBC reported improvement in net fee income driven and also recorded a reduction in costs. In terms of financial position, HSBC explained that its liquidity position remained strong and regulatory capital ratios continued to exceed requirements.
Also among the large companies by market value, Malta International Airport plc retracted by 0.8% to the €5.95 level across 2,250 shares.
Trident Estates plc dropped by 1.4% to the €1.44 level on light volumes.
The RF MGS Index slipped by a further 0.48% to a fresh multi-year low of 974.805 points. Sovereign bond yields in the euro area maintained their upward momentum as surveys of manufacturing activity across the single currency block were encouraging. On the other hand, retail sales in Germany dropped by more than expected. Meanwhile, Italy Central Bank Governor Ignazio Visco opined that the ECB should proceed with caution in raising interest rates whilst also keep a flexible approach with a view of preventing financing conditions from diverging.
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.