Daily Market Highlights (16.12.2022)

MSE Equity Price Index moves marginally higher


The MSE Equity Price Index extended yesterday’s uplift as it rose by a further 0.10% to 3526.443 points. The gains of Hili Properties and GO outweighed the declines of Farsons and PG. Meanwhile, five other equities closed unchanged as overall trading activity climbed to €0.23 million compared to €0.14 million yesterday. Download today’s Equity Market Summary.

Most of today’s trading took place across the ordinary shares of RS2 Software plc which held the €1.19 level after opening at a low of €1.18 (-0.8%). A total of 104,712 shares changed hands having a market value of €0.12 million.

HSBC Bank Malta plc traded flat at the €0.72 level across two deals totalling 23,556 shares.

Also among the large companies by market value, Malta International Airport plc remained at the €5.65 level on volumes totalling 2,225 shares.

Bank of Valletta plc (7,700 shares) and APS Bank plc (11,418 shares) also stayed at the €0.84 and the €0.60 levels respectively.

Today’s best performing equity – Hili Properties plc – climbed 4.5% to the €0.23 level across two trades totalling 12,000 shares.

GO plc advanced by 2.2% to the €2.76 level on two deals totalling 16,500 shares.

In contrast, Simonds Farsons Cisk plc eased 0.7% to the €7.00 level on six trades totalling 2,480 shares.

PG plc fell 1.9% to the €2.10 level after opening at a low of €1.71 (-20.1%), albeit on trivial volumes. Yesterday, PG published its interim financial results for the six-month period ended 31 October 2022. Revenue increased by 13.8% to a new record (at interim stage) of €80.8 million reflecting the higher level of turnover achieved by both the ‘Supermarkets & Associated Retail Operations’ (+14.9% to €67.1 million) and the ‘Franchise Operations’ (+9% to €13.6 million). Meanwhile, operating costs increased by 16.2% to €71.5 million reflecting the overall growth in business as well as the impact of the Group’s decision to absorb an element of the cost price increases to maintain its competitiveness. As a result, the operating profit eased by 0.3% to €9.30 million. Overall, PG’s net profit amounted to €6.10 million, which in turn is 1.7% lower than the €6.21 million figure reported during H1 2021/22. In their commentary, the Board of Directors highlighted the influx of new customers that the business has enjoyed in recent months and reiterated its aim to maintain, and possibly improve upon, the record results achieved during the previous financial year.

The RF MGS Index shed a further 1.50% to a 5-week low of 880.997 points. During this week, the Index lost 2.15%, the largest weekly decline in six months. Eurozone sovereign bond yields surged following yesterday’s statement by ECB President Christine Lagarde which pointed towards a number of other rate hikes in the upcoming monetary policy meetings. Yesterday’s 50 basis point increase pushed the ECB’s deposit facility to the 2.00% level with effect from 21 December 2022.

Today, the Central Bank of Malta published its outlook for the Maltese Economy to 2025. Malta’s GDP is expected to grow by 6.8% this year, which is 1.6 percentage points higher than earlier projections. Meanwhile, the CBM revised marginally downwards the growth rates for 2023 and 2024 to 3.7% and 3.6% respectively, reflecting the faster economic recovery that occurred this year. Further economic growth of 3.5% is also envisaged for 2025. Meanwhile, inflation is expected to have peaked in 2022 at 6.1% and projected to ease to 4.5% and 2.3% in the next two years and decline further to 2% in 2025. The Government’s debt-to-GDP ratio is projected to remain below the 60% level throughout the projected period.


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.