Daily Market Highlights (02.06.2023)

IHI forecasts record revenue for 2023


The MSE Equity Price Index advanced by 0.43% to a new 11-month high of 3,763.310 points as the gain in BOV outweighed the declines in Lombard and Main Street. Meanwhile, six other equities closed the session unchanged, as total trading activity amounted to €0.2 million. Download today’s Equity Market Summary

Today, International Hotel Investments plc published an updated Financial Analysis Summary which included details of the expected financial performance and financial position of the Group in 2023. Revenue is expected to reach a record of €282 million in 2023, which marks an improvement of 18% (or €43.8 million) compared to the previous year and is also 5% higher compared to the pre-pandemic high of €268 million generated in 2019. However, the forecasted EBITDA of €59.6 million remains 15% below the pre-pandemic high of €69.8 million achieved in 2019, reflecting higher operating costs. Nonetheless, after accounting for depreciation and amortisation of €28.6 million as well as finance costs of €39.3 million, IHI is forecasting a net loss for the year of €8.2 million. The equity remained inactive today.

Bank of Valletta plc climbed by a further 3.4% to a four-year high of €1.23 across volumes totalling 109,943 shares. Since the start of the year, BOV’s share price increased by more than 50% and more than €6.5 million worth of shares changed hands.

In contrast, Lombard Bank Malta plc dropped by 5% to the €0.96 level after failing to hold to an intraday high of €1.02 (+1%). Lombard is holding its Annual General Meeting on 22 June, during which, amongst other resolutions, the directors are seeking the authority to issue up to 65 million new ordinary shares.

Main Steet Complex plc fell by 2.8% to the €0.418 level after only partially recovering from a low of €0.31 (-28%) across a total of 2,449 shares.

Malta International Airport plc closed unchanged at the €5.55 level after failing to hold on to an intraday high of €5.65 (+1.8%). A total of 8,370 shares changed hands.

Also among the large companies by market value, GO plc traded flat at the €3.00 level on two deals totalling 1,011 shares.

HSBC Bank Malta plc held the €1.25 level after it rebounded from an intraday low of €1.24 (-0.8%) across five trades totalling 6,500 shares. On Tuesday, HSBC Malta published a Quarterly Update providing information about its performance in Q1 2023 when compared to the same period in 2022. In this respect, HSBC reported a profit before tax of €26.5 million which represents a significant increase from the €4.8 million profit reported in Q1 2022 largely reflecting the increase in interest rates.

APS Bank plc traded flat at the €0.62 level on muted activity. On Wednesday, the Malta Stock Exchange announced that 9,894,985 new APS Bank plc ordinary shares were admitted to the Official List of the Malta Stock Exchange following the recent scrip dividend issue at an attribution price of €0.57 per share, representing a high take-up of over 88%. Following this scrip dividend, the total number of shares in issue increased to 376,812,153 shares.

PG plc closed unchanged at the €1.92 level after recovering from a low of €1.83 (-4.7%), albeit on trivial volumes. Yesterday, PG announced that its Board of Directors is scheduled to meet on Tuesday 23 June 2023 to consider the distribution of an interim dividend.

A single trade of 2,000 shares left the share price of Loqus Holdings plc at the €0.20 level.

The RF MGS Index advanced by 0.29% to 879.741 points. During this week, the RF MGS Index gained 1.64%, registering the first weekly gain in four weeks and the best weekly performance in seven months, reflecting the overall decline in eurozone sovereign bond yields, albeit with continued volatility. In the US, the Senate approved the bill to suspend the debt ceiling until January 2025, but the bill also includes reductions in government spending which should result in savings of around USD1.5 trillion over a ten-year period. Meanwhile, the latest US employment data showed that non-farm payrolls increased above expectations, highlighting the resilience of the US labour market, however, the unemployment rate increased to 3.7% compared to estimates of 3.5%.


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.