Daily Market Highlights (05.05.2022)
MSE Equity Price Index eases from 4-month high
Following yesterday’s strong upsurge of nearly 3%, during today’s trading session the MSE Equity Price Index dropped by 0.33% to 3,795.089 points as the decline in the share price of BOV offset the gains in GO, MPC and the preference shares of RS2. Meanwhile, the ordinary shares of RS2 Software plc stayed at the €1.65 level on volumes totalling 10,646 shares. Overall trading activity in equities contracted to €0.09 million compared to €0.55 million yesterday. Download today’s Equity Market Summary.
Bank of Valletta plc retracted by 4.5% to the €0.945 level across 45,707 shares. On Tuesday, the Bank announced that it has reached an agreement with the curators of the bankruptcy of the Deiulemar Group whereby, without admission of any liability on either part, BOV will pay the sum of €182.5 million to the curators in full and final settlement of the disputes and of all claims that had been made by the curators against the Bank. BOV noted that following this development, it will be in a more secure capital position overall and will be better placed to carry out its business with confidence and sustainability.
Also among the large companies by market value, GO plc rebounded by 3.8% to recapture the €3.28 level albeit on trivial volumes.
Low trading activity also took place in the equity of Malta Properties Company plc which added 0.9% to the €0.555 level.
A single deal of 18,000 shares lifted the preference shares of RS2 Software plc 0.6% higher to the €1.69 level.
The RF MGS Index extended its downward trend as it slipped by a further 0.21% to a fresh multi-year low of 989.215 points. As widely expected, yesterday the US Federal Reserve raised its key interest rate by 50 basis points (the sharpest hike since 2000) to a target range of between 0.75% and 1%. During the customary press conference, Chairman Jerome Powell strongly reiterated his views about the underlying strength of the US economy but dismissed the possibility of more pronounced rate increases in the coming months. In fact, the Chairman indicated that the central bank might increase interest rates by a further 50 basis points during each of the upcoming two monetary policy meetings which will be held in mid-June and late July, followed by more modest rate increases during the remaining three meetings of the year (scheduled for September, November and December).
Yesterday, the Treasury Department announced that it received a total of 48 bids from institutional investors for the three new Malta Government Stocks for a total value of €151.1 million (nominal). The statistics published by the Treasury indicate that although the total offer amounted to €230 million (nominal), only €98.1 million (nominal) were allotted. The allotment was divided as follows: €58.1 million (nominal) in the 1.70% MGS 2028 (IV) at a weighted average price of 101.14% (YTM: 1.5086%); €20 million (nominal) in the 2.10% MGS 2032 (IV) at a weighted average price of 101.78% (YTM: 1.9032%); and €20 million (nominal) in the 2.60% MGS 2047 (I) at a weighted average price of 101.30% (YTM: 2.5303%).
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.