Daily Market Highlights (03.11.2022)
BOV registers improved underlying performance
The MSE Equity Price Index erased some of yesterday’s sharp drop as it rebounded by 0.27% to 3,614.457 points. The uplift reflects the positive performances of BOV and APS whilst IHI, PG and Farsons ended the day unchanged. Overall trading activity in equities eased to €0.16 million compared to €0.19 million yesterday. Download today’s Equity Market Summary.
Bank of Valletta plc advanced by 1.1% to regain the €0.91 level across 50,500 shares. Today, BOV reported a 3% increase in pre-tax profits to €47.8 million in the nine-month period up to September 2022 and when excluding the impact from the settlement of the Deiulemar case. The growth in income reflecting the more favourable interest rate scenario coupled with the increase in lending and non-interest income activity offset the higher level of operating costs and impairment charges as well as the lower contribution from the Bank’s insurance associates. BOV also reiterated its intention of materially strengthening its capital base with a view of expanding its lending book and treasury operations.
Also in the retail banking segment, APS Bank plc surged by 2.5% to the €0.625 level albeit on trivial volumes.
A single deal of 8,767 shares left the share price of Simonds Farsons Cisk plc at the €7.55 level.
PG plc (4,800 shares) and International Hotel Investments plc (50,970 shares) also traded flat at €2.10 and €0.71 respectively.
The RF MGS Index drifted considerably lower to 881.326 points (-0.6%) following yesterday’s decision by the US Federal Reserve to raise interest rates by a further 75 basis points to a target range of between 3.75% and 4% – the highest level since January 2008. The central bank dismissed the idea that it may be pausing monetary policy tightening soon as inflation remains stubbornly high and far above the long-term target of 2%. Elsewhere and in a similar fashion, today the Bank of England raised its benchmark interest rate by 75 basis points – the sharpest uptick in 33 years – to 3% as it noted that “further increases in Bank Rate may be required for a sustainable return of inflation to target.”
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.