Daily Market Highlights (18.11.2022)

Drop in IHI pushes the MSE Equity Price Index lower


The MSE Equity Price Index retracted by a further 0.72% to 3,576.696 points as the sharp drop in the share price of IHI offset the gains in HSBC and LifeStar Insurance. Meanwhile, APS, GO and MIDI closed the day unchanged as overall trading activity in equities contracted to €0.04 million compared to €0.16 million yesterday. Download today’s Equity Market Summary.

International Hotel Investments plc tumbled by 8.5% to the €0.65 level albeit on just 8,601 shares.

Also among the large companies by market value, HSBC Bank Malta plc advanced by 1.4% to recapture the €0.75 level across 33,766 shares. On Wednesday, HSBC issued an Interim Directors’ Statement updating the market on its performance during the nine-month period ended 30 September 2022. The Bank explained that pre-tax profits rose considerably to €33.5 million compared to €25.2 million in the same period in 2021 as the growth in revenues and a material release in expected credit losses offset the increase in costs. The Bank also added that net loans and advances to customers remained at the same level as at 31 December 2021 but customer deposits increased by 6.2%, thus leading to a further deterioration in the loan-to-deposit ratio to 53.5% compared to almost 57% as at the end of 2021. Meanwhile, the Bank’s capital ratios trended lower reflecting adverse movements on financial instruments.

The other positive performing equity today was LifeStar Insurance plc which surged by 11.1% to the €0.50 level across 7,500 shares.

Meanwhile, a single deal of 2,000 shares left the share price of GO plc at its over two-year low of €2.88.

APS Bank plc stayed at the €0.61 level across 2,300 shares.

MIDI plc also traded flat at the €0.282 level across 7,209 shares.

The RF MGS Index erased some of yesterday’s sharp uplift as it retracted by 0.56% to 893.503 points. Movements across sovereign bond yields in the euro area continued to be volatile amid uncertainties on the outlook of the single currency block. In this respect, ECB President Christine Lagarde was quoted as saying that the ECB might have to keep raising interest rates and restrict economic activity to tame inflation. On similar lines, St Louis Federal Reserve President James Bullard noted that the US central bank might need to continue raising interest rates by at least another 100 basis points as the current range of between 3.75% and 4% remains below the “sufficiently restrictive” level the central bank believes is needed to lower inflation to its 2% target.


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.