Daily Market Highlights (11.04.2022)

MSE Equity Price Index drops to a fresh 17-month low  

 

The MSE Equity Price Index opened the week in negative territory as it lost 0.5% to 3,604.512 points – the lowest level since November 2020. MIA, BOV, GO and Harvest trended lower whilst AX Real Estate plc gained 0.9% to the €0.55 level on a single trade of 10,000 shares. Meanwhile, three other equities closed unchanged as overall activity in equities improved to €0.19 million compared to €0.14 million last Friday. Download today’s Equity Market Summary.

Malta International Airport plc shed 2.6% to a near 2-week low of €5.65 on seven deals totalling 19,200 shares. Today, the company announced that it welcomed 316,713 passengers in March 2022 which although is considerably higher than the volume of traffic registered in the corresponding period in 2021 (32,033 passenger movements) and 2020 (169,389 passenger movements), last month’s figure is still 33.7% lower than the total of 477,533 passengers welcomed in March 2019. In aggregate, MIA welcomed 672,965 passengers in the first three months of the year compared to 98,495 in Q1 2021, 1 million in Q1 2020, and 1.2 million during the same period in 2019. Accordingly, passenger traffic in Q1 2022 stood at 56% of the volume handled during the same period prior to the outbreak of the pandemic. In Q1 2022, the total number of seats available on flights to and from Malta remained 35.4% below pre-pandemic levels whilst the seat load factor averaged at 65.5% compared to 75.7% in the first three months of 2019. MIA’s top market in Q1 2022 was Italy (representing 18.6% of total passenger movements), followed by the UK (17.7%), France, Germany, and Poland (which, in aggregate, represented 26% of total traffic).

Also among the large companies by market value, Bank of Valletta plc lost 1.3% to the €0.78 level on four deals totalling 25,618 shares.

GO plc eased by 0.6% to the €3.28 level across 7,750 shares. Shareholders as at close of trading on 21 April will be entitled to receive a final net dividend of €0.09 per share.

The other negative performing equity today was Harvest Technology plc as it retracted by 0.7% to the €1.49 level after partially recovering from an intraday low of €1.41 (-6%) on three deals totalling 5,050 shares. Last Friday, Harvest published its results for the 2021 financial year. Revenues dropped by 18.1% to €15.7 million largely reflecting the lower amount of turnover generated by the company’s retail and IT solutions segments. As a result, the company also reported a contraction in net profit to €2.69 million compared to €3.04 million in 2020. The Directors are recommending the payment of a final net dividend of €0.02 per share. Coupled with the interim dividends paid throughout 2021, the total amount of dividend for the year amounts to €0.06 per share. The final dividend will be paid on or around 29 April to all shareholders as at close of trading on 20 April.

Meanwhile, HSBC Bank Malta plc traded flat at the €0.80 level as 9,900 shares changed hands.

Also in the banking sector, FIMBank plc stayed at the USD0.22 level on a single deal of 23,000 shares.

Malta Properties Company plc retained the €0.51 level after failing to hold an intra-day high of €0.515 (+1%). A total of 22,500 shares changed hands. Shareholders as at close of trading on 13 April will be entitled to receive a final net dividend of €0.012 per share.   

The RF MGS Index moved lower for the fifth consecutive session as it shed 0.54% to 1,005.973 points – the lowest level since January 2013. The surge in eurozone sovereign bond yields was evident as the 10-year German bund yield rose past the 0.80% level for the first time February 2018, amid recent hawkish comments made by the major central banks. Furthermore, the French 10-year yield rose sharply after the first rounds of presidential elections saw far-right candidate Marine Le Pen erase the wide gap to set a tight run-off election in two weeks’ time.

 

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.