Daily Market Highlights (12.12.2022)
Subdued activity across local equities
The MSE Equity Price Index posted a five-day negative streak as it eased by 0.05% to 3529.162 points reflecting the decline of MIDI. Meanwhile, three other equities closed the day unchanged as overall trading amounted to €0.03 million. Download today’s Equity Market Summary.
MIDI plc fell 4% to a 7-year low of €0.24 on a single trade of 67,250 shares.
Within the banking sector, Bank of Valletta plc (11,962 shares) and APS Bank plc (5,100 shares) traded flat at the €0.85 and €0.60 levels respectively.
Simonds Farsons Cisk plc remained at the €7.35 level on muted volumes.
The RF MGS Index fell by 0.36% to a three-week low of 897.273 points as sovereign bond yields remained volatile in anticipation for the two-day Federal Reserve monetary policy meeting starting tomorrow. The Fed is expected to announce another increase to its key rates on Wednesday. Meanwhile in the UK, GDP growth in October exceeded expectations, boosted by the improvement in the services sector which had contracted in the previous month.
Today, the Central Bank of Malta published its Interim Financial Stability Report 2022, which detailed how the Maltese financial system remained resilient to the adverse global macroeconomic developments as during the first half of the year the local economy continued to grow at a fast pace amid a strong recovery from the pandemic. The report stated that loan portfolios of Maltese banks have not yet shown any signs of credit quality deterioration, with an overall non-performing loans ratio of 2.9%. Maltese banks remained adequately capitalised and reported improvements in underlying profitability. Meanwhile, the report also included recommendations for the financial sector to remain vigilant to the various operational and external risks.
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.