Daily Market Highlights (16.01.2023)

Treasury confirms record MGS issuance of €1.6 billion

Today, the Treasury Department announced that the amount of issuance of Malta Government Stocks (MGS) during 2023 will not exceed €1.6 billion, which in turn is above the record MGS issued in 2021 of €1.46 billion. The funds raised will be principally used to finance the estimated Government deficit of €979.9 million and the redemption of four MGS issues and the 62+ Malta Government Saving Bond issued in 2018 which, in aggregate, amount to €445.4 million. The Treasury explained that the conventional fixed rate MGS will be the primary financial instrument used to fund the Government’s borrowing plan. The Treasury is aiming to spread its issuance programme for 2023 over five to seven issues whilst the maturity structure will be a mix of short and medium to long MGS. Full details of the MGS on offer and the respective amounts and maturities will be published one to two weeks prior to each offer. Meanwhile, the Treasury also explained that it will continue to hold auctions for treasury bills on a weekly basis, with issuance expected to focus on the 91-day and 182-day tenor. Download today’s Equity Market Summary.

The RF MGS Index snapped a five-day winning streak as it moved 0.27% lower to 884.379 points. Natural gas prices in the Europe fell to the lowest level since September 2021 as inventory levels continue to increase amid the unusually mild winter that resulted in lower-than-expected consumption. Germany’s wholesale price inflation eased to the lowest level since August 2021 at 12.8%.

Meanwhile, the MSE Equity Price Index eased by 0.06% to 3,580.416 points as the gain of Malita was offset by the declines of IHI and Farsons. Meanwhile, two other equities closed unchanged as overall trading activity amounted to €0.04 million.

Most of today’s trading activity took place on the shares of Malta International Airport plc as it closed unchanged at the €5.65 level after recovering from an intraday low of €5.60 (-0.9%). A total of 5,809 shares exchanged hands. Last week, MIA announced that passenger movements during the entire 12-month of 2022 amounted to 5.85 million, which is higher than the updated 2022 full-year target of 5.7 million passenger movements, but still 20% below the full-year traffic for 2019 of 7.31 million passenger movements.

APS Bank plc held the €0.60 level on one deal of 1,000 shares.

Malita Investments plc was today’s best performing equity as it rebounded by 14.2% to the €0.685 level on a single trade of 500 shares.

In contrast, International Hotel Investment plc eased by 0.8% to the €0.605 level on one deal of 1,100 shares.

Simonds Farsons Cisk plc shed 0.7% to the €7.25 level on a single trade of 339 shares.

Today, MaltaPost plc announced that during the forthcoming Annual General Meeting (AGM) to be held on 16 February 2023, the Directors will recommend a share split of the Company’s shares on a two (2) for one (1) share basis. As a result, every one (1) share having a nominal value of €0.25 will be split into two (2) shares, each with a nominal value of €0.125. The proposed share split is intended to allow easier access to a larger number of investors which should result in improved trading liquidity in the shares of MaltaPost. The Company stated that further information regarding the AGM will be announced at a later date.



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.