Daily Market Highlights (22.03.2023)

Mapfre Middlesea reports improved profitability, increases dividend


The MSE Equity Price Index fell by 1.44% to a 2-month low of 3,527.007 points as the declines in seven equities outweighed the gain in GO. Meanwhile, HSBC Bank Malta plc traded flat at the €1.00 level across five deals totalling 59,158 shares. Download today’s Equity Market Summary.

Mapfre Middlesea plc fell by 11.4% to the €1.48 level on trivial volumes. Today, Mapfre published their financial results for 2022. The Group’s total income from insurance activities declined marginally to €23.3 million compared to €24.3 million in 2021, however profitability for 2022 was higher due to the non-recurrence of the €1.5 million revaluation loss on property that the Group suffered in the previous year. Overall, the Group registered pre-tax profits of €22.2 million (2021: €20.4 million). After accounting for tax expenses and non-controlling interests, net profits attributable to Mapfre shareholders amounted to €8.79 million compared to €7.64 million in 2021. The Chairman’s statement highlighted that while the results seem excellent, they do not reflect the complex effects brought about by the markets, principally with respect to the Group’s life insurance subsidiary MSV Life plc. In this respect, the Chairman explained that assets under management were adversely affected by the market downturn and placed pressure on solvency. At the upcoming Annual General Meeting scheduled for 28 April 2023, the Directors are recommending the payment of a final net dividend of €0.038043 per share to all shareholders as at the close of trading on 8 May 2023. The dividend is 46% higher than last year’s payout.

A single trade of 6,765 shares pulled the share price of International Hotel Investments plc down by 8.8% to a two-year low of €0.515.

Also amongst the large companies by market value, Malta International Airport plc shed 1.8% to the €5.55 level as 367 shares changed hands.

Bank of Valletta plc dropped by 1.1% to the €0.90 level on one deal of 1,294 shares.

AX Real Estate plc erased most of yesterday’s gains as it moved 6.4% lower to the €0.482 level across four trades totalling 36,413 shares.

Also within the property sector, Malta Properties Company plc eased by 2.3% to the €0.43 level across two trades totalling 1,600 shares. Last week, MPC’s Board of Directors declared a final net dividend of €0.013 (2021: €0.012) per share to shareholders as at close of trading on 13 April 2023.

Tigné Mall plc dropped by 5.3% to the €0.71 level on lacklustre volumes.

GO plc advanced 3.3% to the €3.10 level across two trades totalling 1,020 shares. At the upcoming Annual General Meeting scheduled for 11 May 2023, the Directors of GO are recommending the payment of a final net dividend of €0.09 per share to all shareholders as at the close of trading on 5 April 2023.

The RF MGS Index declined by a further 0.91% today to 881.450 points as the eurozone yields continued to rise, with the German 10-year bund yield climbing to a one-week high of 2.3%. Today, while delivering a speech in Frankfurt, ECB President Christine Lagarde referred to the latest inflation projections which see headline inflation at 2.1% and core inflation at 2.2% in 2025. These forecasted figures are lower than earlier projections but the uncertainty of the projections is higher. Ms. Lagarde reiterated that future rate hike decisions will be determined by three key inputs, namely inflation outlook, measures of underlying inflation, and the strength of the transmission of the policy in restricting demand, particularly due to the soaring labour demand. Elsewhere in the UK, the annual inflation rate in February rose to 10.4%, the first increase in three months.


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.