Daily Market Highlights (02.02.2023)

Major Central Banks increase rates in line with expectations


The RF MGS Index advanced by 0.1% to 883.638 points as yields across the eurozone moved lower despite interest rate hikes from the Federal Reserve, the European Central Bank (ECB) and the Bank of England. Yesterday, the Federal Reserve increased the federal funds rate by an additional 25 basis points to between 4.50% and 4.75%. In a press conference Fed Chair Jerome Powell stated that the Fed will continue to raise rates but indicated the possibility that the rate does not exceed the 5% level. He also stated that a rate cut will not take place during 2023. Today, the European Central Bank increased its interest rates by 50 basis points with the deposit facility climbing to 2.50%. The ECB also reiterated that further rate hikes will take place to ensure inflation eases to the 2% level. The Bank of England also increased their interest rates by 50 basis points, with the Bank’s main rate now at the highest level since late 2008 of 4%.

The MSE Equity Price Index closed virtually unchanged at 3,551.069 points as the gains in HSBC, IHI, Farsons and Santumas were largely offset by declines in six other equities. Meanwhile, six other equities closed unchanged as overall trading activity stood at €0.22 million. Download today’s Equity Market Summary.

HSBC Bank Malta plc extended its recent positive run as it climbed by a further 1.1% to the €0.88 level across four trades totalling 80,148 shares. HSBC should shortly confirm the date of publication of the 2022 annual financial statements.

Also among the large companies by market value, International Hotel Investments plc rose by 2.6% to the €0.60 level on three deals totalling 12,076 shares.

Simonds Farsons Cisk plc erased yesterday’s drop as it rebounded by 1.4% back to the €7.00 level on volumes totalling 1,700 shares.

Santumas Shareholdings plc was today’s best performing equity as it went up by 3.9% to the €1.33 level across two deals totalling 15,203 shares.

In contrast, APS Bank plc slipped by 2.4% to the €0.60 level across three trades totalling 5,513 shares.

BMIT Technologies plc shed 1.8% to the €0.442 level on three trades totalling 30,000 shares.

A single trade of 1,500 shares pulled the share price of M&Z plc to an all-time low of €0.68.

MedservRegis plc fell 4.5% to the €0.75 level on a single deal of 1,785 shares.

MIDI plc was today’s worst performing equity as it plunged by 8.2% to the €0.27 level, albeit on a single trade of 1,150 shares.

Also in the property sector, Trident Estates plc moved 0.7% lower to a five-month low of €1.37 on one deal of 1,710 shares.

Malta Properties Company plc (2,698 shares) and Malita Investments plc (6,000 shares) traded flat at the €0.46 and €0.62 levels respectively.

Malta International Airport plc closed the session unchanged at the €5.65 level after failing to hold to a high of €5.90 (+4.9%) across eight deals totalling 12,942 shares.

A single trade of 2,225 shares left the share price of GO plc at the €2.76 level.

MaltaPost plc retained the €1.08 level on four deals totalling 1,200 shares.

Bank of Valletta plc remained at the €0.88 level on low volumes.



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.