Daily Market Highlights (08.02.2022)

Italian Court delivers decision against BOV


The MSE Equity Price Index extended yesterday’s decline as it dropped by 0.58% to 3,715.361, the lowest level since the end of November 2020. Five equities moved lower whilst only Malta International Airport plc traded positively as it increased by 0.9% to regain the €5.90 level across 5,180 shares. Meanwhile, PG and Mapfre remained unchanged as overall trading activity amounted to €0.22 million. Download today’s Equity Market Summary.

Bank of Valletta plc dropped by 0.6% to the €0.84 level across six trades totalling 28,450 shares. This afternoon, BOV announced that the Tribunal of Torre Annunziata has delivered its decision against the Bank for an aggregate amount totalling €370 million including legal interests and fees. BOV will be appealing this decision in line with advice from its legal advisors. BOV also reassured the market that it is well capitalized and its operations will not be adversely impacted by the decision. In 2018, the Bank already held funds in excess of €363 million with an independent entity as a precautionary security.

Also in retail banking sector, HSBC Bank Malta plc retracted by 3.8% to the €0.885 level on a single trade of 1,236 shares.

Plaza Centres plc extended yesterday’s decline as it fell by further 5.6% to the €0.85 level as 13,750 shares changed hands.

Also in the property sector, VBL plc slumped by 12.5% to the lowest level since its listing in October 2021 at €0.252. A total of 14,500 shares were traded.

BMIT Technologies plc moved 1.6% lower to the €0.482 level on three deals totalling 20,300 shares.

Today’s most actively traded equity – PG plc – remained unchanged at the €2.20 level after failing to hold an intraday high of €2.22 (+0.9%) across six deals totalling 62,480 shares, representing nearly 63% of today’s total value of shares traded.

Mapfre Middlesea plc kept at the €2.02 level on trivial volumes.

Today, AX Group plc announced the basis of acceptance in relation to the IPO and Bond Issue of its property subsidiary AX Real Estate plc (“AXRE”). With regards to the Share Issue, AXRE received applications for 24,336,700 shares. In relation to the Bond Issue, AXRE received applications for a total amount of €18.4 million. In addition, AX Group applied for €21.6 million in bonds in consideration for the partial repayment of the existing intragroup debt. All applications were met in full. The Ordinary ‘A’ Shares and the Bonds are expected to be admitted to the Official List of the Malta Stock Exchange on 15 February 2022 and trading is expected to commence on 16 February 2022.

The RF MGS Index continued to trend lower as it fell by a further 0.14% to 1,040.729 points – the lowest level since June 2014. Eurozone sovereign bond yields continued to surge with the German 10-year Bund Yield reaching the highest level in over two years. Meanwhile, ECB supervisory Board member Fernandez-Bollo indicated that any future potential monetary policy tightening will be gradual and dependent on incoming macroeconomic data.


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.