Daily Market Highlights (04.03.2022)
Subdued activity across local shares
The MSE Equity Price Index retracted by 0.215% to 3,735.729 points as the decline in the share price of IHI outweighed the uplift in VBL. Overall trading activity in equities contracted to just €0.01 million. Download today’s Equity Market Summary.
International Hotel Investments plc dropped by 2.7% to a near 1-year low of €0.545 across 13,942 shares. Yesterday, IHI provided an update on its operations in Russia in view of the severe international sanctions imposed on the country. In this respect, IHI explained that although its hotel in St Petersburg and adjoining Commercial Centre (which represent approximately 8% of total revenues and assets) are fully operational, depending on the duration of the conflict, the prevailing situation could have an adverse effect on the hotel operations particularly in so far as international travellers are concerned. On the other hand, IHI noted that it does not expect that the Russian market will be materially adversely affected. Indeed, over the past two years, the St Petersburg Corinthia Hotel had its principal source of business originating from the Russian market. Meanwhile, IHI added that the operating forecasts of its other properties remain encouraging, thus confirming its resilience arising from the Group’s geographic diversification.
Meanwhile, VBL plc added 0.8% to the €0.254 level after retreating from an intraday high of €0.256 (+1.6%). A total of 15,000 shares changed hands. Yesterday, the company announced that its Board of Directors is scheduled to meet on Thursday 10 March to consider and approve the financial statements for the year ended 31 December 2021. The Board will also consider the recommendation of a dividend.
The RF MGS Index erased some of yesterday’s drop as it rebounded by 0.29% to 1,056.369 points. Movements across sovereign bond yields in the euro area continued to be dominated by the latest developments taking place in Ukraine, as Russian forces seized the largest nuclear power plant in Europe. On the economic front, inflation-adjusted retail sales in the euro area missed expectations in January as they rose by only 0.2% over the previous month indicating a slower rate of recovery in consumer spending.
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.