Daily Market Highlights (01.08.2023)

HSBC declares highest interim dividend in 7 years


The MSE Equity Price Index surged by 1% to a 19-month high of 3,829.210 points driven by the gains in five equities. Meanwhile, four other equities closed unchanged as the total trading activity improved to €0.24 million. Download today’s Equity Market Summary.

HSBC Bank Malta plc surged by 4% to an over three-year high of €1.30 after retracting from an intra-day high of €1.35 (+8.0%) across eleven trades totalling 58,439 shares. Today, HSBC Malta announced the interim results for the first six months 2023. Net interest income surged by 94% to €89.7 million (H1 2022: €46.2 million) driven by the strong growth in gross interest income, which offset the higher interest expense. In this respect, HSBC explained that the performance benefitted from the rising interest rates, which sharply contrasts the negative interest rates that were charged on overnight deposits in the first six months of 2022. Meanwhile, non-interest income remained virtually unchanged at €16.6 million. HSBC reported a net profit of €38.5 million (restated H1 2022: €11.6 million) which translates into an annualised return on average equity of 16.2% (H1 2022: 5.1%). As a result of the marginal drop in customer deposits and customer loans, the loan-to-deposit ratio remained unchanged at 53%. Shareholders’ funds as at 30 June 2023 amounted to €492.5 million which translates into a net asset value per share of €1.367. The Board of Directors declared a net interim dividend of €0.039 per share, which represents the highest interim dividend paid by HSBC Malta in seven years. The dividend is payable on 15 September 2023 to all shareholders as at close of trading on 10 August 2023.

Also in the banking sector, Bank of Valletta plc advanced by 2.4% to the €1.28 level across thirteen deals totalling 53,654 shares.

APS Bank plc moved 0.8% higher to the €0.62 level as 5,485 shares changed hands. APS shareholders as at close of trading on 23 August 2023 will be entitled for a net interim dividend of €0.0056 per share (equivalent to €2.1 million) and 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.

Tigné Mall plc advanced by 6.3% to the €0.84 level across four trades totalling 20,000 shares. Tigné Mall is set to publish its interim results for the six-month period ending 30 June 2023 on Friday 11 August. The Directors will also consider the declaration of an interim dividend.

MaltaPost plc surged by 13.9% to a two-week high of €0.41, albeit on a single trade of 1,372 shares.

Meanwhile, Malta International Airport plc traded flat at the €5.65 level over nine trades totalling 11,359 shares. MIA is expected to publish its interim results later today.

The ordinary shares of RS2 Software plc closed unchanged at the €1.30 level as 8,000 shares changed hands. RS2 recovered from an intra-day low of €1.20 (-7.7%).

BMIT Technologies plc held the €0.41 level on two trades totalling 8,050 shares.

AX Real Estate plc maintained the €0.45 level on a single deal of 1,003 shares.

The RF MGS Index gained 0.17% to close at 871.784 points. In the Euro Area, the seasonably adjusted unemployment rate reached an all-time low of 6.4% in June, below market expectations of 6.5%. In particular, Italy’s unemployment rate fell to 7.4%, the lowest level registered in over 13 years. On the other hand, the Euro Area’s manufacturing PMI fell in July to a three-year low of 42.7 as the sharp decline in new orders outweighed previously backlogged orders.


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.