Daily Market Highlights (07.12.2022)

MIA achieves strongest recovery rate in November


The MSE Equity Price Index posted a three-day negative streak as it fell by a further 0.27% to 3,538.411 points as the declines of GO and Malita outweighed the gains in Mapfre and MPC. Meanwhile, four other equities closed unchanged as overall trading activity amounted to €0.02 million. Download today’s Equity Market Summary.

Malta International Airport plc held the €5.70 level on a single deal of 350 shares. Today, MIA announced that during the month of November, it welcomed 433,621 passengers which is only 12.1% lower than the 493,201 movements handled in the same month in 2019, despite that the number of available seats to and from MIA remained at 19.9% below 2019 levels. Indeed, the seat load factor reached an all-time high for November of 85.8%, compared to 78.1% in 2019. As such, between January and November 2022, passenger movements amounted to 5.4 million, which is only 0.3 million below the updated 2022 full-year target of 5.7 million passenger movements.

Also among the large companies by market value, Bank of Valletta plc traded flat at the €0.86 level across three deals totalling 10,000 shares. Yesterday, BOV announced that it issued €350 million in callable senior non-preferred notes which were offered on both the local and international markets at a coupon of 10%. 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 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.

HSBC Bank Malta plc stayed at the €0.75 level across volumes totalling 5,802 shares.

LifeStar Insurance plc remained at the €0.50 level on trivial volumes.

GO plc was today’s worst performing equity as it plunged by 5.6% to multi-year low of €2.70, albeit on trivial volumes.

In the property sector, Malita Investments plc shed 4.1% to the €0.70 level on negligible volumes while Malta Properties Company plc advanced by 3.2% to the €0.51 level as 976 shares changed hands.

Mapfre Middlesea plc moved 3.3% higher to the €1.55 level across two trades totalling 2,429 shares.

Today, MedservRegis plc announced that the recent offer of €13 million 5.00% secured bond 2029 has been oversubscribed with applications exceeding €14 million. As a result, the Intermediaries Offer did not take place. The company noted that it will be announcing the basis of acceptance and the allocation policy on or around 12 December 2022. In a separate announcement, MedservRegis plc announced that as a result of the successful subscription to the new 5.00% secured bond 2029, the company will proceed with the early redemption of the €13 million 6.00% secured and guaranteed notes 2020/2023 at their nominal value (par) on 7 January 2023.

Also today, GAP Group plc published a Prospectus in relation to a new €23 million 4.75% secured bond issue maturing in 2027 with the possibility of early redemption as from 2025. The offer period closes on 21 December at 14:00 and the minimum subscription amount is set at €5,000 (nominal).

The RF MGS Index registered an uplift of 0.57% to an over one-week high of 905.368 points as eurozone sovereign bond yields continued to decline amid increasing expectations that the prospect of a global recession will halt the monetary policy tightening of major central banks. Meanwhile, the eurozone economic growth for Q3 2022 was revised slightly higher to 0.3%.

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.