Daily Market Highlights (20.01.2023)

RS2 expects stable results for 2022, growth in 2023

The MSE Equity Price Index shed 0.91% to an over 2-week low of 3,524.151 points as the declines of HSBC, IHI and MIA outweighed the gains of the ordinary shares of RS2 and APS. Meanwhile, two other equities remained unchanged as overall trading activity in equities improved to €0.11 million from €0.02 million yesterday. Download today’s Equity Market Summary.

The ordinary shares of RS2 Software plc moved 0.9% higher to the €1.18 level across three deals totalling 3,375 shares. Today, RS2 provided an update on the Group’s performance in 2022 and the expectations for the 2023 financial year. RS2 continued to execute its strategy with resilience, albeit customers were cautious in the execution of signed projects and also held back to new ones. The 2022 financial results show a stable top line performance compared to the previous year while the outlook for 2023 indicates that the business pipeline is stronger and anticipate a successful year that will also include the launch of several new products.

The other positive performing equity today was APS Bank plc as it climbed 0.8% to the €0.605 level across two trades totalling 5,513 shares.

Also in the retail banking sector, HSBC Bank Malta plc plunged 5.8% to the €0.735 level after failing to hold to an intraday high of €0.80 (+2.6%) across volumes totalling 67,470 shares.

Malta International Airport plc erased yesterday’s gains as it shed 2.6% to the €5.60 level across four deals totalling 5,756 shares. On Wednesday, MIA announced that the company is investing €175 million in the transformation of the airport in line with the company’s vision to take passenger numbers beyond the record levels of 2019. An amount of €39 million is planned to be disbursed in 2023. MIA also published its targets for 2023 which include passenger movements of 6.3 million (7.7% growth from 2022 and representing 86% recovery of pre-pandemic traffic in 2019). MIA expects to generate revenues of €97 million in 2023 (2019: €100.2 million), EBITDA of €59 million (2019: €63.2 million), and net profit of €29 million (2019: €33.9 million).

International Hotel Investments plc extended its recent negative run as it fell by a further 3.3% to a 9-month low of €0.58 across two trades totalling 7,500 shares.

Two deals totalling 5,500 shares left AX Real Estate plc at the €0.54 level.

Bank of Valletta plc closed unchanged at the €0.90 level after recovering from a low of €0.855 (-5%) as 7,394 shares changed hands.

The RF MGS Index fell by 0.50% to 892.817 points reflecting the increase in eurozone sovereign bond yields following yesterday’s statements by ECB officials who cautioned that the ECB will continue increasing its key interest rates to restrictive territory for a period long enough to lower inflation to the 2% target. Nonetheless, the RF MGS Index posted its third consecutive weekly gain as it advanced by 3.3% since the start of the year. Data released today showed that the annual producer inflation in Germany was at 21.6% in December 2022, which is the lowest level since November 2021 but higher than expectations.


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.