Daily Market Highlights (12.10.2023)

Bank equities dominate trading activity


The MSE Equity Price Index remained relatively unchanged at 3,637.719 points as the gains in BOV and Convenience were offset by the declines in HSBC and APS. Meanwhile, Lombard, IHI and MIA closed unchanged as the total trading activity was muted at €0.07 million. Download today’s Equity Market Summary.

Lombard Bank Malta plc was today’s most actively traded equity as it closed unchanged at the €0.78 level after recovering from an intra-day low of €0.77 (-1.3%) across three deals totalling 45,623 shares.

International Hotel Investments plc (7,000 shares) and Malta International Airport plc (180 shares) also closed unchanged at the €0.51 and €5.50 levels respectively. Yesterday, MIA published its September traffic results. Passenger movements exceeded their relative 2019 figures for the ninth consecutive month and amounted to 812,176 passenger movements, which is 6.5% above the comparable figure of 762,361 registered in September 2019. Passenger movements in September 2023 were 23.3% higher than the movements registered in the same month last year. The seat load factor for September 2023 also remained high at 89.2%, which is 3.0 percentage points higher than in September 2019, despite the fact that seat capacity was also 3% higher when compared to 2019.

Bank of Valletta plc advanced by 1.7% to the €1.22 level after across seven trades totalling 15,128 shares. BOV failed to hold onto an intra-day high of €1.24 (+3.4%). Yesterday, BOV announced that the Bank is in advanced negotiations to sell a portfolio of long-standing non-performing loans to strengthen its capital and liquidity buffers.

A single trade of 3,000 shares pushed the share price of The Convenience Shop (Holding) plc 6.2% higher to a new high of €1.03.

On the other hand, HSBC Bank Malta plc declined by 1.7% to a four-week low of €1.13 across three deals totalling 5,000 shares.

Also in the banking sector, APS Bank plc shed 1.7% to an over three-month low of €0.59 across two trades totalling 8,858 shares. Yesterday, APS announced that subject to regulatory approval, APS will be issuing the first series consisting of up to €50 million 5.8% unsecured subordinated bonds maturing in 2028-2033.

The RF MGS Index increased for the sixth consecutive day as it gained 0.38% to a two-week high of 857.934 points. Yesterday, the Federal Opening Market Committee released the minutes of the last monetary policy meeting previously held on 20 September. The committee unanimously agreed that federal funds target rates need to remain elevated until inflation reaches the target of 2%. The majority of the members thought that a further rate hike would be appropriate in a future meeting. However, some participants expressed that they did not think another rate hike would be warranted. Data released in the US today showed that annual inflation in September remained unchanged at 3.7%, as opposed to an expected 0.1 percentage point decrease. The slower increase in the prices of food was offset by a slower easing of energy prices. Furthermore, core inflation fell to 4.1%, the lowest reading in over two years.  Meanwhile, in the UK, the economy reported a slight month-over-month growth in GDP during August, as per expectations, thus shifting from contractions previously seen during the month of 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.