Daily Market Highlights (12.09.2023)

Lombard share price up 11% following rights issue details


The MSE Equity Price Index climbed by 0.76% to 3,766.062 points as the gains in IHI, Lombard, LifeStar Holding and Farsons outweighed the declines in GO, MIA, MPC, and PG. Meanwhile, four other equities closed unchanged as overall trading activity in local equity improved to a one-week high of €0.11 million. Download today’s Equity Market Summary.

Lombard Bank Malta plc surged by 10.5% to the €0.84 level across six deals totalling 14,590 shares. Yesterday, Lombard announced that it submitted an application to the Malta Financial Services Authority requesting approval of a prospectus in relation to a 2-for-3 rights issue of new ordinary shares, which shall form part of the same class and have equal rights to existing shares. The Rights Issue will first be offered to shareholders as at the close of trading on Friday 15 September 2023. The announcement also noted that the rights issue price has been set at €0.75 per new ordinary share. This represents a discount of around 20% to the trade-weighted average price of the bank’s shares over the last six months of €0.93. It also represents a discount of over 50% to the net asset value of €1.51 per share as at 30 June 2023. Lombard explained that the rights issue will allow for further strengthening of its capital base both for regulatory purposes as well as for the implementation of the bank’s strategy for growth. Lombard noted that this is expected to result in increased profits and, subject to business requirements and regulatory approval, dividend distributions of circa one third of annual profits.

LifeStar Holding plc closed the session markedly higher at the €1.00 level compared to its previous closing price of €0.34 as 6,124 shares exchanged hands.

Also among today’s positive performers, International Hotel Investments plc (+6.9%) and Simonds Farsons Cisk plc (+1.5%) moved higher to the €0.54 and €6.70 levels respectively, albeit on muted activity.

Bank of Valletta plc was today’s most actively traded equity as it closed unchanged at the €1.27 level after recovering from an intraday low of €1.25 (-1.6%) across volumes totalling 56,994 shares.

Within the same sector, APS Bank plc (2,349 shares) and HSBC Bank Malta plc (1,123 shares) closed unchanged at the €0.60 and €1.20 levels respectively.

Mapfre Middlesea plc held the €1.25 level on trivial volumes.

PG plc shed 2% to the €2.00 level on a single trade of 2,800 shares.

GO plc retracted by 0.7% to the €2.92 level on one deal of 1,100 shares.

A single trade of 1,000 shares pulled the share price of Malta International Airport plc 1.8% lower to the €5.60 level.

Malta Properties Company plc erased yesterday’s gains as it moved 3.9% lower back to the €0.392 level across one deal of 1,100 shares.

The RF MGS Index eased by 0.05% to 865.999 points reflecting the drop in prices across longer-dated MGS as yields increased. Oil prices moved towards a 10-month high of USD90 per barrel as the Organisation of the Petroleum Exporting Countries (OPEC) projected a strong demand for oil. Similarly, the International Energy Agency published projections showing that the consumption of major fossil fuels will continue to increase until 2030, however, are forecasted to decline thereafter due to the anticipated growth in renewable energy production.

Meanwhile, the auction results for the 91-day Treasury Bill published by the Treasury Department showed a sharp increase in the weighted average yield on accepted bids to 3.306% compared to 2.405% last week. Today’s auction bids included a wide range from a low of 2.300% to a cut-off of 3.962%. Meanwhile, the outstanding nominal balance in Treasury Bills dropped for the 11th consecutive week to €589.6 million.


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.