Daily Market Highlights (18.05.2022)
MSE Equity Price Index trends higher on low volumes
The MSE Equity Price Index added 0.38% to 3,749.848 points as four companies posted gains whilst BOV, IHI and MPC closed unchanged. Trading activity contracted further to €0.06 million compared to €0.09 million yesterday. Download today’s Equity Market Summary.
MaltaPost plc (5,600 shares) and FIMBank plc (1,100 shares) surged by 4.8% to €1.10 and USD0.22 respectively. Today, MaltaPost published its interim results for the six-month period ended on 31 March. The postal operator reported significant reduction in revenues and profits as its annualised return on equity dropped to 2.4% compared to 6.7% during the previous corresponding period. In their commentary, the Directors explained how the company’s operations are being negatively impacted by the lack of tariff revision especially related to local and outbound mail. Moreover, the aftereffects of the pandemic, Brexit and other adverse legislative developments are all contributing towards significant disruption and increase in costs.
Malta International Airport plc rebounded by 1.7% to recapture the €5.90 level across 4,040 shares. Yesterday, MIA published a quarterly update which showed that despite passenger traffic was 44.1% lower in Q1 2022 than the level achieved in Q1 2019, revenues in the first three months of 2022 amounted to €10.8 million which is 30.4% lower than the €15.6 million figure recorded in the corresponding period in 2019. EBITDA stood at €4.46 million compared to €7.23 million in Q1 2019 whilst the EBITDA margin rebounded to 41.1% which is 5.4 percentage points lower than the level recorded in the first three months of 2019. Overall, MIA reported a net profit of €0.63 million as the airport operator reiterated its optimism for the months ahead including the kick-start of a number of large-scale projects. MIA also ended Q1 2022 with a total cash balance of €36.5 million which is 47% higher than the level of €24.8 million as at 31 March 2021.
A single deal of 10,000 shares lifted the share price of BMIT Technologies plc 0.8% higher back to the €0.48 level.
Meanwhile, International Hotel Investments plc (3,820 shares) and Malta Properties Company plc (1,000 shares) traded flat at €0.75 and €0.505 respectively.
Bank of Valletta plc held on to the €0.92 level after opening at a low of €0.885 (-3.8%). A total of 22,000 shares changed hands.
The RF MGS Index trended lower for the fourth consecutive day as it slipped by a further 0.28% to 983.837 points. Sovereign bond yields in the euro area extended their upward momentum after Dutch central bank governor Klaas Knot opined that the ECB should raise interest rates by 50 basis points in July should inflation accelerate further. In this respect, fresh data issued today showed that consumer prices increased by 7.4% year-on-year in April, marginally lower than the 7.5% increase expected by economists.
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.