Daily Market Highlights (01.08.2022)

HSBC posts net profit of €15.5mln


The MSE Equity Price Index opened the week slightly lower as it eased by 0.05% to 3,671.234 points. The declines in four equities marginally outweighed the gains in PG and Farsons whilst a further four shares closed the day unchanged. Trading activity contracted noticeably to just €0.04 million compared to €0.26 million last Friday. Download today’s Equity Market Summary.

HSBC Bank Malta plc retracted by 1.3% to the €0.775 level albeit on trivial volumes. Today, HSBC reported a net profit of €15.5 million in the first half of 2022 (H1 2021: €11.4 million) as the Bank’s financial performance was boosted by a net impairment reversal of €11.8 million. On the other hand, HSBC reported a drop of 3.4% in operating income whilst expenses rose by just over 10% reflecting higher contribution to the Deposit Compensation Scheme as well as depreciation and amortisation charges. The Bank noted that in view of the prevailing macroeconomic uncertainties, it is not declaring an interim dividend.

A single deal of 5,000 shares forced the share price of MedservRegis plc to move 1.7% lower to the €0.875 level. Last Friday, MedservRegis announced that it signed a new contract with ExxonMobil Exploration and Production Cyprus (Offshore) Limited (EMEPCOL) for the provision of storage and related services. The contract is for a period of up to three years, and will cover the rights that EMEPCOL, together with its partner QatarEnergy, have for the exploration of Block 5 and Block 10 in the Cypriot exclusive economic zone.

Mapfre Middlesea plc moved back to the €1.76 level (-1.1%) across 6,400 shares.

The other negative performing equity today was BMIT Technologies plc with a drop of 0.8% to the €0.47 level on a total of 28,000 shares. BMIT is due to publish its interim results on Friday 5 August.

International Hotel Investments plc stayed at the €0.75 level across 10,000 shares.

APS Bank plc held on to the €0.655 level albeit on just 2,002 shares. Last week, APS reported a net loss of €0.5 million for the first half of 2022 as although the Bank continued to register strong growth in operations, its financial performance was dented by adverse movements in the value of financial assets. The Bank is recommending a net interim dividend of €0.005 per share through the issuance of new ordinary shares. Subject to any regulatory approvals required, an Extraordinary General Meeting will be convened to approve the issuance of new shares in satisfaction of this interim dividend. A separate announcement will be issued in due course announcing the date of the EGM for later in the year and after the summer period.

Low trading activity also took place in the equities of Malta Properties Company plc and Tigné Mall plc which traded flat at €0.496 and €0.69 respectively. Tigné Mall is due to publish its interim results on Thursday 4 August.

In contrast, PG plc advanced by 1.9% to recapture the €2.14 level on insignificant volumes.

Similarly, Simonds Farsons Cisk plc moved 0.7% higher to the €7.65 level on just 350 shares.

The RF MGS Index extended its recent rebound as it advanced by a further 0.15% to 957.232 points. Fresh economic data published today showed that manufacturing activity in the euro area fell by less than expected whilst the unemployment rate stayed at the 6.6% level. In contrast, retail sales in Germany fell sharply by much more than anticipated.


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.