Daily Market Highlights (19.05.2023)
Farsons share price climbs to 2-month high
The MSE Equity Price Index rose by 0.12% to 3,672.655 points as gains in MIA, BOV, Farsons, and Lombard outweighed the declines in APS and the ordinary shares of RS2. Meanwhile, BMIT Technologies plc closed unchanged at the €0.43 level as 34,000 shares changed hands.Download today’s Equity Market Summary.
Simonds Farsons Cisk plc extended yesterday’s uplift with a further gain of 1.4% to a 2-month high of €7.20 across five deals totalling 3,386 shares. Yesterday, Farsons published its annual results for the year ended 31 January 2023. Revenues surged by 28.8% to a record of €118.2 million (FY2021/22: €91.8 million) which, in turn, is 14.2% higher than the record of €103.5 million posted in the 2019/20 financial year. Overall, the Group posted a net profit of €15.4 million which translates into a return on average equity of 11.5% (FY2021/22: 10.0%). Following the net interim dividend of €0.045 per share paid in October 2022, the Directors of Farsons resolved to recommend an additional final net dividend out of tax-exempt profits of €0.11 per share. The dividend will be paid on 16 June 2023 to shareholders as at close of trading on Tuesday 23 May 2023, subject to approval at the upcoming AGM to be held on Thursday 15 June 2022. The Board of Directors also announced that they are carrying out a strategic review of opportunities for the further expansion of the Group’s foods business and considering the potential structuring of the enlarged food operations in a separate listed entity.
Also among the large companies by market value, Malta International Airport plc rose by 0.9% to the €5.55 level across eight trades totalling 6,750 shares.
Bank of Valletta plc closed 0.9% higher at the €1.10 level as 27,807 shares exchanged hands. BOV will be holding its Annual General Meeting next Thursday 25 May.
Also within the banking sector, Lombard Bank Malta plc advanced by 2% to a 3-week high of €1.02 across two trades totalling to 6,908 shares.
In contrast, APS Bank plc shed 1.6% to the €0.61 level on two deals totalling 13,000 shares.
The ordinary shares of RS2 Software plc fell by 2.7% to a 9-week low of €1.10 over two trades totalling 9,000 shares.
Today, Trident Estates plc published the annual report for the year ended 31 January 2023. Revenues more than doubled to €2.35 million (FY2021/22: €1.13 million) reflecting the new rental income generated by the tenants moving into Trident Park. The financial performance was boosted by the fair value gain of €6.75 million related to the Group’s investment property known as Trident House located in Qormi. Overall, Trident reported a profit before tax of €7.49 million and a net profit of €6.57 million. Shareholders’ funds increased by 12.4% to €59.7 million which translates into a net asset value per share of €1.422. In his commentary, the CEO explained that the demand for space at Trident Park (Mriehel) emanated from a wide spectrum of businesses and signed-up occupancy levels reached 63% as at the time of writing of the report. The company is also targeting a material increase in the occupancy rate over the next year. With respect to Trident House (Qormi), the Board is conducting a strategic review and is considering a number of enquiries and expressions of interest that have been received.
The RF MGS Index dropped by 0.41% to an over 2-month low of 870.548 points, largely reflecting the sharp downward movement in prices for longer dated MGS. The decrease in bond prices was analogous with the upward movement in yields of various eurozone sovereign bond yields, with some reaching the highest levels in three months. Today, ECB Executive Board Member Isabel Schnabel explained how the ECB is ensuring both monetary and financial stability separately, as the financial services sector is concerned with liquidity rather than solvency. In this respect, the ECB can continue its monetary policy tightening to control inflation, but also provide liquidity to the euro area financial system to preserve financial stability.
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.