Daily Market Highlights (17.12.2021)
PG posts record interim performance
The MSE Equity Price Index finished the week 1.27% higher as today it gained a further 0.24% to 3,797.509 points. The uplifts in the share prices of IHI and HSBC outweighed the decline in GO whilst BOV, MIA and BMIT closed unchanged. Overall trading activity contracted to just €0.07 million compared to €0.25 million yesterday. Download today’s Equity Market Summary.
HSBC Bank Malta plc added 1.7% to the €0.885 level across 18,464 shares. Yesterday, HSBC announced that it entered into a 10-year unsecured €60 million loan agreement with HSBC Bank plc to enable the bank meet the interim targets for minimum requirement for own funds and eligible liabilities (‘MREL’). The loan has an option of early repayment and bears interest at a rate equal to 3-months EURIBOR plus a margin of 117 basis point which currently results in an effective rate of around 0.6%.
Also among the large companies by market value, International Hotel Investments plc surged by 3.5% to regain the €0.59 level across 16,015 shares.
In contrast, GO plc slipped by 2.4% back to the €3.26 level on 7,000 shares.
Meanwhile, Bank of Valletta plc (8,000 shares) and Malta International Airport plc (1,000 shares) traded unchanged at €0.88 and €5.65 respectively.
Similarly, BMIT Technologies plc stayed at the €0.48 level on a total of 25,000 shares.
Yesterday, PG plc published its half-yearly results covering the six-month period ended 31 October 2021. Total revenues increased by 12.1% to a record (at interim stage) of just under €71 million reflecting the higher level of turnover achieved by both the ‘Supermarkets & Associated Retail Operations’ and the ‘Franchise Operations’. The growth in business also led a surge in net profits to €6.21 million (+20.7%) whilst the company also significantly reduced its net borrowings to less than €1 million. In their commentary, the Directors noted the company’s commitment to additional investments including the possibility of pursuing new growth opportunities in its core line of business. In fact, the company is actively exploring and negotiating a number of potential ventures which, if secured, would contribute to future growth. The equity remained inactive today.
The RF MGS Index registered the sharpest daily decline in three weeks as it lost 0.16% to 1,091.985 points. Today, the Central Bank of Malta published its latest outlook for the Maltese economy as it upgraded Malta’s GDP growth forecasts to 6.0% in 2021, 6.5% in 2022, 5.3% in 2023 and 3.8% in 2024. The upward revision in 2021 (+0.9 percentage points) and 2022 (+0.7 p.p.) is primarily driven by stronger growth in investment and government consumption, and to a lesser extent, by a stronger projected recovery in private consumption. The labour market is expected to remain strong, but shortages are likely to become more prevalent in the short term in part due to the impact of travel restrictions. The CBM also noted the risks of further increases to inflation which might lead to the government registering a higher deficit. Indeed, the National Statistics Office reported today that Malta reached the highest inflation rate in three years at 2.4% in November.
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.