Daily Market Highlights (06.12.2022)

BOV issues €350 mln in Callable Senior Non-Preferred Notes


 The MSE Equity Price Index retracted by 0.40% to an over two-year low of 3,547.854 points as the declines of BOV, GO and MIA outweighed the uplift in HSBC. Meanwhile, MPC and Farsons closed unchanged as overall trading activity amounted to €0.03 million. Download today’s Equity Market Summary.

Bank of Valletta plc was the worst performing equity today as it dropped by 3.4% to the €0.86 level on two deals totalling 4,834 shares. Today, BOV announced that it issued €350 million in callable senior non-preferred notes which were offered on both the local and international markets. Given their complexity, the Notes were not available to the retail market but could only be subscribed for by professional investors and eligible counterparties for a minimum of €100,000 (nominal). The issue attracted an order book of high-quality real money accounts of around €460 million, evenly split between domestic and international investors. Investor participation was a diverse one, with official institutions accounting for around 32.1% of the Notes allocated, followed by public and private banks at 28%, asset managers at 24.5% and hedge funds at 13.1%. The net proceeds from the issue of Notes will be used to further strengthen the MREL requirements of the Bank and its consolidated subsidiaries, thereby allowing BOV to increase its lending book and expand the investment horizon of its proprietary investments, as well as for the general financing purposes of the Group.

Malta International Airport plc moved 0.9% lower to the €5.70 level on a single deal of 1,732 shares.

The other negative performing equity today was GO plc which lost 0.7% to the €2.86 level albeit on trivial volumes.

In contrast, HSBC Bank Malta plc advanced by 2.7% to the €0.75 level on 3,546 shares.

Malta Properties Company plc stayed at the €0.494 level on volumes of 6,000 shares.

Simonds Farsons Cisk plc held on to the €7.35 level across 1,344 shares.

Today, International Hotel Investments plc announced that its hotel operating arm Corinthia Hotels Limited signed a management agreement with Diriyah Gate Development Authority (“DGDA”) for a new Corinthia hotel in Diriyah, Saudi Arabia. The property is expected to be inaugurated in 2025 and will comprise 80 hotel rooms, 10 serviced villas, as well as a number of restaurants. IHI explained that the project forms part of the wider development of Diriyah which is currently being regenerated into the Kingdom’s foremost historical, cultural and lifestyle destination.

The RF MGS Index advanced by 0.07% to 900.216 points as eurozone sovereign bond yields moved lower with the German 10-year Bund yield dipping below the 1.80% level. Meanwhile in the US, better-than-expected data from the services sector continued to fuel speculation that the Federal Reserve may continue to tighten its monetary policy.


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.