Daily Market Highlights (02.06.2022)
Farsons share price surges 12%
The MSE Equity Price Index trended higher to remain above the 3,700 mark largely reflecting the strong gains in Farsons and HSBC. On the other hand, only Trident finished the day lower whilst a further four companies closed unchanged. Overall trading activity in equities improved marginally to €0.16 million compared to €0.14 million yesterday. Download today’s Equity Market Summary.
Following yesterday’s uplift of 8.5%, the share price of Simonds Farsons Cisk plc climbed by a further 12% to the €8.35 level from yesterday’s bonus-adjusted closing price of €7.46. A total of 7,922 shares changed hands.
HSBC Bank Malta plc rebounded by 4.7% to the €0.785 level after recovering from an intra-day low of €0.74 (-1.3%). A total of 22,500 shares traded. On Tuesday, 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, GO plc recaptured the €3.20 level (+0.6%) on a total of 4,316 shares.
In contrast, Bank of Valletta plc (12,399 shares) and Malta International Airport plc (7,400 shares) closed unchanged at €0.89 and €5.95 respectively.
PG plc traded flat at the €2.24 level across 2,000 shares.
A single deal of just 355 shares left the share price of Santumas Shareholdings plc at the €1.15 level.
Low trading activity also took place in the equity of Trident Estates plc which slipped by 7.6% to the €1.33 level.
The RF MGS Index drifted lower for the fifth consecutive day as it slipped by a further 0.55% to 969.474 points – the lowest level since late November 2011. Yesterday, the US Federal Reserve published the results of the surveys conducted by the Federal Reserve Districts on the health of the US economy. The central bank noted that although all Districts continued to report encouraging growth (especially in the manufacturing sector), inflation and higher interest rates are leaving an adverse impact on consumer spending as more businesses become more concerned about a possible recession. On the other hand, the surveys confirmed the strong underlying dynamics of the US labour market and that many firms are forced to continue operating below maximum capacity.
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.