MSE Equity Price Index registers 3-day winning streak

 

The MSE Equity Price Index climbed by a further 0.45% to a fresh 19-month high of 3,853.955 points as the gains in BOV, GO and PG outweighed the declines of MIA, MPC and Plaza. Trading activity surged to a one-month high of €0.47 million. Download today’s Equity Market Summary.

Most of today’s trading took place across the shares of Bank of Valletta plc. BOV’s share price surged by 3.1% to an over four-year high of €1.31 across strong volumes totalling 287,200 shares having a market value of €0.37 million. Last week, BOV reported record profitability for the first six months of the year.

Also amongst large companies by market capitalisation, GO plc gained 1.4% to the €1.94 level across three deals totalling 4,191 shares. GO is set to publish its interim results for the six-month period ending 30 June 2023 on Monday 7 August.

PG plc advanced by 2% to a 5-month high of €2.08 over two trades of 1,600 shares. PG’s Board of Directors is scheduled to meet on Thursday 24 August 2023 to consider and approve the Annual Report and financial statements for the year ended 30 April 2023.

In contrast, Malta International Airport plc shed 1.8% to the €5.55 level after failing to hold to an intraday high of €5.70 (+0.9%) across twelve deals totalling 10,485 shares. On Tuesday, MIA published its interim results for the first six months of the year and also provided updated forecasts for the 2023 financial year. In the first half of the year, revenues reached a record (at the interim stage) of €53.6 million, which is 20% higher than the previous record of €44.6 million generated in the first half of 2019. EBITDA amounted to €33.4 million, which is 24.2% higher than the level of €27 million generated in the first six months of 2019. The Board of Directors declared a net interim dividend of €0.03 per share, which is the first interim dividend since 2019. The dividend is payable by not later than Friday 15 September 2023 to all shareholders as at the close of trading on Monday 21 August 2023. considering the strong performance in the first six months of 2023 as well as the expectations of an overall positive summer season, MIA updated its targets for the 2023 financial year: passenger movements of 7.2 million (2019: 7.31 million), revenues of €113 million (2019: €100.2 million), EBITDA of €70 million (2019: €63.2 million), net profit of €37 million (2019: €33.9 million), and capital investments of €39 million (2019: €24.9 million).

Plaza Centres plc slumped by 12% to a seven-week low of €0.625 across three trades totalling 2,828 shares. Yesterday, Plaza published its financial results covering the six months that ended on 30 June 2023. Revenue advanced by 5% to €1.51 million, but EBITDA remained relatively unchanged at €1.07 million. Meanwhile, Plaza benefitted from lower net finance costs and overall generated a net profit for the period of €0.56 million, which was 21.6% higher than that of the first half of 2022. Shareholders as of the close of trading on Friday 11 August 2023 will receive an unchanged net interim dividend of €0.0098 per share. The dividend represents a payout ratio of 44.6% and will be paid on Wednesday 30 August 2023.

Also in the property sector, Malta Properties Company plc dropped by 4.4% to a two-week low of €0.39, albeit over trivial volumes.

Mapfre Middlesea plc closed unchanged at the €1.51 level as 8,058 shares changed hands.

HSBC Bank Malta plc traded flat at the €1.34 level on two deals totalling 4,200 shares. On Tuesday, HSBC Malta announced the interim results for the first six months of 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. 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), translating 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 the close of trading on 10 August 2023.

Also in the banking sector, APS Bank plc held the €0.62 level across three trades totalling 8,000 shares. APS shareholders as at close of trading on 23 August 2023 will be entitled for a net interim dividend of €0.0056 per share. 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.

Today, MedservRegis plc announced that its Board of Directors is scheduled to meet on Wednesday 30 August 2023 to consider and approve and publish its interim results for the six-month period ending 30 June 2023.

The RF MGS Index dropped by 0.14% to 868.268 points as the gains in short-term MGS prices were outweighed by the decline in prices of longer-dated securities resulting in a steeper yield curve. Today, the Bank of England raised interest rates for the 14^th consecutive time. The policy rate was set 25 basis points higher to 5.25%. The Bank of England explained that it expects inflation to fall to 5% by the end of the year driven by the drop in energy prices. The Bank of England projected that inflation would fall to its 2% target by June 2025.

 

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.