Imminent bond issue from IHI
The MSE Equity Price Index decreased by 0.32% to 3,738.647 points as the declines in HSBC, Lombard and MIDI outweighed the gain in MPC. Meanwhile, three other equities closed unchanged. Download today’s Equity Market Summary.
Following the close of trading, International Hotel Investments plc announced that it has submitted an application to the MFSA requesting admissibility to listing of new unsecured bonds maturing in 2033. IHI noted that, subject to regulatory approval, it will be granting preference to holders of the 5.8% unsecured bonds 2023 and 6% unsecured bonds 2024 to subscribe to the new bonds by surrendering the corresponding nominal value of bonds held.
Also today, BMIT Technologies plc (‘BMIT’) issued a Shareholder Circular in relation to the proposed transaction with GO plc for the potential assignment and transfer of certain lease rights and obligations currently enjoyed by GO as well as the passive infrastructure used for hosting telecommunications equipment. The transaction is being proposed for approval in the forthcoming Extraordinary General Meeting scheduled to be held on Monday 25 September 2023. BMIT shareholders as at close of trading on Wednesday 23 August 2023 are entitled to attend and vote at the EGM. The Shareholder Circular also provides ‘pro forma’ financial information based on a hypothetical scenario assuming that the proposed transaction was implemented with effect from 1 January 2022. BMIT also published a Market Briefing Presentation, which provides a visual representation of the details of the proposed transaction, and the Asset Valuation Report, an independent asset valuation that was prepared by Ernst & Young Limited.
BMIT’s parent company – GO plc – held the €2.92 level on a single deal of 750 shares.
Also among the large companies by market value, Malta International Airport plc traded flat at the €5.75 level across two trades totalling 340 shares.
Bank of Valletta plc was today’s most actively traded equity as closed unchanged at the €1.26 level after recovering from an intraday low of €1.24 (-1.6%) across volumes totalling 71,767 shares.
MIDI plc slumped by 10.8% to a seven-week low the €0.232 level, albeit on a single trade of 5,277 shares. Last week, MIDI published its interim results showing a marginal decrease in rental and property management income. Meanwhile, MIDI did not recognise the sale of any units since the final residential development at Tigné Point (known as Fortress Gardens) is still under construction. The net loss for the first half of 2023 amounted to €1.11 million. As at 30 June 2023, shareholders’ funds amounted to €100.2 million, which translates into a net asset value per share of €0.4677.
Lombard Bank Malta plc shed 1.2% to the €0.83 level on a single deal of 9,570 shares. Last week, Lombard published its interim results for the six-month period ended 30 June 2023. Net interest income increased by 25% to €12.7 million as the growth in gross interest income outweighed the higher level of interest expense. Likewise, non-interest income surged by 22% to €22.6 million. However, Lombard’s financial performance was also negatively impacted by a net impairment charge of €1.88 million in contrast to the net impairment reversal of €12.1 million in the first half of 2022. Operating profit amounted to €5.54 million compared to €17.3 million in the same period last year. Excluding the impact of impairment provisions, operating profit surged by 43% to €7.4 million compared to €5.2 million last year. The net profit for the period attributable to shareholders of Lombard amounted to €3.25 million. In the first six months of the year, shareholders’ funds increased by 2.73% (or €3.72 million) to €139.9 million which translates into a net asset value per share of €1.509. The Board explained that Lombard will seek to increase its capital base by circa €50 million in an upcoming Rights Issue.
Also in the banking sector, HSBC Bank Malta plc moved 1.6% lower to the €1.20 level on trivial volumes.
Malta Properties Company plc was today’s only positive performer as it gained 1.5% to recapture the €0.40 level on lacklustre volumes.
The RF MGS Index decreased by 0.47% to a one-week low of 869.573 points, reflecting the increase in eurozone sovereign bond yields. Indeed, the German 10-year bund yield climbed to a near two-week high of 2.58%. Today ECB president Christine Lagarde highlighted the importance of effective communication of ECB’s policy, especially at a time when inflation is high and more people are giving more attention to inflation.
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.