Daily Market Highlights (20.01.2022)
MSE Equity Price Index drops to 5-week low
The MSE Equity Price Index trended lower for the second consecutive day as it retracted by a further 0.81% to a five-week low of 3,762.933 points. BOV and HSBC ended the day in negative territory whilst MIA and Hili Properties moved higher. Meanwhile, BMIT and GO traded unchanged as overall trading activity improved to €0.13 million compared to just €0.04 million yesterday. Download today’s Equity Market Summary.
Bank of Valletta plc declined by 4.7% to the €0.82 level on seven deals totalling 12,612 shares.
Also in the banking sector, HSBC Bank Malta plc lost 4.3% to €0.89 on 42,558 shares.
Also among the large companies by market value, Malta International Airport plc recaptured the €5.85 level (+0.9%) across 3,230 shares. On Tuesday, the airport operator announced that it will now proceed with the development of ‘SkyParks 2’ (which will include a hotel) and the construction of ‘Apron X’ which is expected to be completed in 2026 and will be the largest investment in aerodrome infrastructure undertaken by MIA since 1998. MIA’s Board of Directors is scheduled to meet on 22 February to consider and approve the financial statements for the year ended 31 December 2021.
Hili Properties plc added 0.7% to the €0.272 level on a total of 66,000 shares. Today, Hili Properties announced that it concluded the acquisition of a 50,000 sqm land plot in Lithuania’s largest free economic zone for €20.9 million. The property houses a 19,000 sqm factory leased to REHAU Production which is a leading provider of solutions to the construction, automotive and industrial industries. Following this transaction, the value of the company’s property portfolio increased to €135 million whilst the total leasable area increased to 90,000 sqm across 23 properties. Meanwhile, Hili Properties also noted that the planned property acquisition in Warsaw, Poland, did not materialise.
Elsewhere, GO plc (5,700 shares) and BMIT Technologies plc (82,275 shares) traded unchanged at €3.22 and €0.482 respectively.
The RF MGS Index trended higher for the first time in four days as it rebounded by 0.14% to 1,065.70 points. Sovereign bond yields in the euro area fell despite comments made by the Governor of the Bank of France which indicated that the ECB would consider scaling back its monetary stimulus if high inflation persists further. Meanwhile, fears of economic slowdown in China led the country’s central bank to cut the benchmark interest rate.
Today, the Treasury announced that the amount of issuance of new Malta Government Stocks (“MGS”) in 2022 is not expected to exceed €1.2 billion. The funds will principally be used to finance the redemption of five MGSs, the 62+ Malta Government Savings Bond which was issued in 2017, and the financing of the central government’s deficit estimated at almost €740 million. The Treasury added that it will be issuing conventional fixed rate MGS spread over four to five issues. The maturity structure will be a mix of short and medium to long term MGS. Full details of the offers, respective amounts, and maturities will be published one to two weeks prior to each offer.
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.