Daily Market Highlights (17.03.2022)
MPC registers 6% revenue growth in 2021
The MSE Equity Price Index rebounded by 0.19% to 3,667.615 points as the gains in the share prices of MIA, MPC and BMIT outweighed the decline in MaltaPost plc which dropped by 3.4% to the €1.15 level across 2,500 shares. Meanwhile PG, BOV and Malita traded unchanged as overall trading activity improved to €0.12 million compared to €0.09 million yesterday. Download today’s Equity Market Summary.
Malta Properties Company plc climbed by 1% to the €0.53 level after recovering from an intraday low of €0.52 (-1%). A total of 32,541 shares changed hands. Today, the company published the results for the 2021 financial year. Revenues increased by 6% to an all-time high of €3.64 million as the full-year contribution from the HSBC Contact Centre in Swatar, coupled with the inflation-linked adjustments in rents, offset the loss of income from the Marsa Spencer Hill Old Exchange. However, in view of the increase in operating and finance costs, as well as the lower amount of positive fair value movements arising on property, the company reported an 11.2% drop in net profit to €2.65 million. MPC noted that its long-term outlook remains positive as it continues to pursue new opportunities. During the upcoming AGM to be held on 19 May, the Directors will recommend the payment of an unchanged final net dividend of €0.012 per share.
Malta International Airport plc added 1.7% to regain the €5.85 level on 6,700 shares.
The other positive performing equity today was BMIT Technologies plc as it added 0.4% to the €0.494 level across 89,000 shares.
Meanwhile, a single deal of 6,487 shares left the share price of PG plc at the €2.30 level.
Bank of Valletta plc (5,480 shares) and Malita Investments plc (1,636 shares) all closed the day unchanged at €0.78 and €0.785 respectively. Malita is due to publish its 2021 full-year results tomorrow.
Today, GO plc announced that it concluded the acquisition of a 76% equity stake in Sens Innovation Group Ltd (“SENS”) for a consideration of €1 million, with the possibility of a further €1.85 million earnout depending on the performance of SENS over a three-year period. SENS is an energy management company that leverages proprietary Internet-of-Things (“IOT”) based technology to reduce energy consumption and associated costs for commercial buildings. GO noted that this strategic acquisition will further strengthen the company’s investment in IoT as part of its drive of digital Malta. Moreover, the company anticipates that new opportunities will come its way as it offers environmentally conscious energy saving solutions to companies in Malta, Cyprus and UK. The equity remained inactive today.
The RF MGS Index moved higher for the first time in eight sessions as it advanced by 0.18% to 1,033.854 points. Yesterday, the US Federal Reserve increased its key interest rate by 25 basis points amid concerns over high inflation. In its updated macroeconomic forecasts, the central bank reduced the GDP growth forecast for this year to 2.8% from the earlier estimate of 4% but revised higher the inflation forecast to 4.3% from the previous projection of 2.6%. In his address to the media, Federal Reserve Chairman Jerome Powell reiterated that the US economy remains very strong and well positioned to handle tighter monetary policy. Similarly, today the Bank of England raised its key interest rate by 25 basis points to 0.75%, thus moving its benchmark rate back to its pre-pandemic level. In this regard, the UK central bank stated that some further monetary tightening may be required in the coming months, depending on how the medium-term prospects for inflation changes.
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.