Daily Market Highlights (08.08.2023)

 BOV closes at a fresh 4-year high


The MSE Equity Price Index eased by 0.39% to 3,840.599 points mainly driven by a slump in Mapfre Middlesea. The shares of IHI also traded lower, whilst, on the other hand, BOV and MaltaPost closed higher. Meanwhile, four other equities closed unchanged as trading activity totalled €0.13 million. Download today’s Equity Market Summary.

Mapfre Middlesea plc slumped by 17.2% to reach lows last seen in May 2015 at the €1.25 level, albeit on a single trade of 4,000 shares.

International Hotel investments shed 0.9% to a one-week low of €0.54 level on a single deal of 1,000 shares.

On the other hand, Bank of Valletta plc gained 0.8% to a fresh four-year high of €1.32 level as 55,972 shares changed hands across fifteen trades. BOV recovered from an intra-day low of €1.28 (-2.4%).

MaltaPost plc surged by 12.2% to a one-month high of €0.46 across three deals totalling 6,766 shares.

Meanwhile, GO plc closed unchanged at the €2.94 level over five trades, failing to hold onto an intra-day high of €3.00 (+2%). Yesterday, GO published its interim results for the six-month period ending 30 June 2023. Revenues surged by 13.7% to a record (at the interim stage) of €120.5 million (H1 2022: €106.0 million), reflecting growth in the local telecom services as well as its subsidiaries BMIT Technologies plc and Cablenet Communication Systems plc. Operating profit surged by 23.7% to €18.6 million (H1 2022: €15.1 million). Excluding depreciation and amortisation, EBITDA increased by 10.2% to €45.3 million (H1 2022: €41.2 million), however, the EBITDA margin eased to 37.6% compared to 38.8% in the first half of 2022. The Group’s net profit for the period attributable to shareholders amounted to €8.71 million (H1 2022: €6.44 million) which translates into an annualised return on average equity of 18.6% (H1 2022: 13.1%).

Yesterday, GO plc and BMIT Technologies plc announced that following the conclusion of discussions 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, they entered into an Asset Purchase Agreement in relation to the proposed transaction. The Directors of GO explained that the proposed transaction will allow GO to focus on its core business operations and end-customers, resulting in operational advantages and the provision of better services for/to GO. The proceeds are expected to go towards the financing of GO’s future capital expenditure and investments as well as partial repayment of existing borrowings. Meanwhile, the Directors of BMIT explained that the proposed transaction will support the Company’s strategy and provides an attractive opportunity for the Company to diversify its business model and become a Maltese “InfraCo”, with the investment in this backed by long-term, contracted revenues; and with cash flows generated from GO as its anchor client over a 30-year period. The companies have agreed that the final consideration due shall be determined, between the closing date and seven business days prior thereto, by way of a recalculation of the original consideration of circa €47.1 million less an amount corresponding to the GO Loan and any adjustments required in terms of the consideration adjustment provisions.

APS Bank plc traded flat holding onto yesterday’s four-month high at the €0.63 level over five trades totalling 15,910 shares. APS shareholders as of the close of trading on 23 August 2023 will be entitled to a net interim dividend of €0.0056 per share. Shareholders can elect to receive the dividend either in cash or through the issuance of new ordinary shares at an attribution price of €0.57 per share.

Also in the banking sector, HSBC Bank Malta plc held the €1.30 level as 8,705 shares changed hands.

MIDI plc closed unchanged at the €0.26 level on a single deal of 10,000 shares.

The RF MGS Index gained 0.45% to 873.170 points, mostly driven by the gains in longer-dated MGS. The increase in prices reflects a drop in yields which was also observed in other Euro Area sovereign bond yields. In fact, the yields of the German 10-year Bund fell to a one-week low below 2.435% from highs exceeding 2.6%. Today, Germany’s annual inflation rate in July was registered at 6.5%, in line with expectations and a 0.3 percentage point ease from the 6.8% registered in the previous month. The fall came despite the rebound in energy prices from the last month and persistent food inflation which remained at 11% in July.


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.