Daily Market Highlights (14.07.2023)

MGS Issue fully allotted at €400 million


Today, the Treasury Department announced that it received applications totalling around €569 million (nominal) for the three new Malta Government Stocks. The Treasury had offered a total of €270 million (nominal), with the option of increasing the aggregate amount by a maximum amount of a further €130 million (nominal). The Treasury exercised its over-allotment option to increase the overall issue to just under €400 million. Subscriptions from retail investors at the fixed prices established by the Treasury Department amounted to around €180 million (nominal) and all applications were accepted in full. The Treasury also allotted a total of €219.5 million (nominal) to institutional investors. The statistics published by the Treasury indicate that €64 million were allotted to institutional investors in the 3.55% MGS 2026 (V) at a weighted average price of 99.90%, which translates to a YTM of 3.59%. In the 3.75% MGS 2033 (III), a total of €155.5 million were allotted to institutional investors at a weighted average price of 99.07%, which translates to a YTM of 3.86%.

The RF MGS Index remained relatively unchanged at 869.448 points. Despite recent declines in US inflation, yesterday, Fed Governor Christopher Waller maintained a hawkish stance and stated that he still expects two further interest rate hikes to happen before the end of the year, including one at the next meeting. Waller commented that the resilience of the US economy and the labour market gives leeway to tighten rates even further. Furthermore, he emphasised the importance of stabilising wage growth so that inflation can be sustainably maintained at the 2% long-term target. Download today’s Equity Market Summary.

The MSE Equity Price Index eased by 0.05% to 3739.783 points as the drop in six equities including large-cap MIA and HSBC outweighed the gains of another six equities. Meanwhile, four other equities closed unchanged as the total trading activity recovered to a one-week high of €0.29 million.

HSBC Bank Malta plc was today’s worst performer as it slumped by 3.3% to a four-week low of €1.16 on two trades amounting to 9,877 shares. HSBC is set to publish its half-year results on 1 August.

Also in the banking sector, APS Bank plc, shed 1.6% to the €0.6 level, albeit over trivial volumes.

Malta International Airport plc was today’s most actively traded equity, it closed 0.9% lower at the €5.55 level across two deals totalling 19,220 shares, having a market value of €0.11 million.

MedservRegis plc declined by 0.8% to the two-week low of €0.655 after partially recovering from an intra-day low of €0.58 (-12.1%) across three trades totalling 4,500 shares.

MaltaPost plc moved 1.7% lower to the €0.45 level on muted activity.

AX Real Estate plc shed 0.4% to the €0.492 level after partially recovering from a low of €0.44 (-10.9%) on two deals totalling 1,556 shares.

On the other hand, Bank of Valletta plc gained 0.8% to a four-week high at the €1.24 level across eighteen trades totalling 62,599 shares.

Also among the large companies by market cap, GO plc moved 0.7% higher to a two week high of €3.00 across eight trades totalling 11,000 shares.

PG plc climbed 3.2% to a 2-month high of €1.96 level across three trades totalling 8,600 shares.

Malita Investments plc rebounded by 5.1% to a one-week high of €0.62 over seven trades totalling 55,000 shares.

Also in the property sector, MIDI plc (+11.2%) and Trident Estates plc (+0.8%) moved higher to the €0.258 and €1.26 levels respectively on muted activity.

Simonds Farsons Cisk plc traded flat at the €6.75 level over four deals totalling 387 shares.

BMIT Technologies plc closed unchanged at the €0.41 level as 5,000 shares changed hands.

Mapfre Middlesea plc and Malta Properties Company plc held the €1.51 and €0.39 levels respectively, each on a single deal of 1,000 shares.


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