Daily Market Highlights (01.12.2021)

IHI expects stronger rebound in EBITDA


The MSE Equity Price Index erased yesterday’s decline as it climbed by 0.15% to 3,762.326 points. The gains in the share prices of BOV and HSBC outweighed the drops in FIMBank, MPC and MaltaPost. Meanwhile, four other equities remained unchanged as trading activity amounted to €0.08 million. Download today’s Equity Market Summary.

Yesterday, International Hotel Investments plc announced that following an increase in the level of business during the second half of the year, it is now expecting to generate a consolidated EBITDA of over €24 million for the current financial year. Although this is substantially higher than the earlier forecasts of €11 million (June 2021) and €15 million (October 2021), it is still 65% lower than the record EBITDA of close to €70 million generated in the 2019 financial year. Meanwhile, IHI also announced that the offer for €80 million in unsecured bonds has been oversubscribed. The equity remained inactive today.

Bank of Valletta plc advanced by 1.8% to the €0.865 level on two trades totalling 5,000 shares.

Also in the retail banking sector, HSBC Bank Malta plc moved to a five-month high of €0.84 (+1.2%) across 14,954 shares.

In contrast, FIMBank plc dropped by 3.4% to an all-time low of €0.28 on 114,992 shares.

Malta Properties Company plc moved 1.8% lower back to the €0.55 level after partially recovering from an intraday low of €0.54 (-3.6%) on low volumes.

MaltaPost plc retracted to a five-month low of €1.19 (-0.8%) on trivial volumes.

Elsewhere, Malta International Airport plc remained at the €5.80 level as 2,000 shares changed hands.

A single trade of 7,974 shares left the share price of PG plc at the €2.42 level. Shareholders as at close of trading yesterday will receive a net interim dividend of €0.0208333 per share which is payable on Friday 10 December. The dividend is 12.5% higher than the corresponding interim dividend paid out for the first half of the 2020/21 financial year.

VBL plc also remained unchanged at the €0.30 level on a single deal of 5,000 shares.

Also in the property sector, Tigné Mall plc stayed at the €0.70 level on one trade of 2,000 shares.

The RF MGS Index posted a four-day positive streak as it gained a further 0.04% to 1,089.227 points. The MGS yield curve continued to flatten amid data showing lower-than-expected eurozone manufacturing levels for the month of November. Furthermore, manufacturing in China contracted due to logistical delays and supply-chain issues. Meanwhile in the US, Federal Reserve policymakers will be discussing the possibility of a faster tapering of the monthly bond purchases in their upcoming meeting in two weeks’ time. Fed Chair Jerome Powell acknowledged that inflationary pressures might not be as “transitory” as they might persist for longer than previously estimated.

Yesterday, AX Group plc announced that holders of the 6% AX Investments plc 2024, the 3.25% AX Group 2026, and the 3.75% AX Group plc 2029 bonds as at close of trading on 15 December will be given preference in the allocation of the shares forming part of the upcoming AX Real Estate plc IPO and the 3.5% AX Real Estate plc 2032 bond issue.

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.