Daily Market Highlights (22.07.2022)
Farsons on track for a record year
The MSE Equity Price Index snapped a five-day negative streak as it rebounded by 0.3% to 3,689.068 points. The gains in BOV and BMIT outweighed the declines of APS and MIA while Farsons and Loqus closed the day unchanged. Overall trading activity in equities remained subdued at only €0.03 million. Download today’s Equity Market Summary.
Simonds Farsons Cisk plc held to the €7.45 level albeit on trivial volumes. Today, Farsons published an updated Financial Analysis Summary showing that revenues are expected to surge by 26% to a record of €115.7 million in FY2022/23 reflecting growth across all business lines as well as the initial contribution from ‘The Brewhouse’. EBITDA is anticipated to climb by 12.6% to €25.6 million which would also be a new all-time high. Overall, the Group is forecasting a net profit of €12.2 million which would translate into a return on equity of 9.2%. In terms of financial position, the gearing ratio is anticipated to ease to 20% from 21% as at the end of January 2022. Moreover, in view of the improvement in financial performance, the interest cover is projected to increase to 26 times whilst the net debt-to-EBITDA multiple is expected to strengthen to 0.68 times.
A single deal of 5,000 shares left the share price of Loqus Holdings plc at the €0.16 level.
BMIT Technologies plc moved 2.1% higher to recapture the €0.48 level on a single deal of 10,000 shares.
Bank of Valletta plc was the best performing equity today with a gain of 3.4% back to the €0.92 level across 16,050 shares. Yesterday, BOV announced that its Board of Directors is scheduled to meet on Thursday 28 July to consider and approve the interim financial statements for the six-month period ended 30 June 2022. The Directors will also consider the declaration of an interim dividend, subject to regulatory approval.
Also in the retail banking sector, APS Bank plc moved 1.5% lower to the €0.65 level on 2,300 shares. APS is also due to publish its interim results on 28 July.
Meanwhile, Malta International Airport plc eased by 0.8% to the €5.95 level on 1,700 shares.
The RF MGS Index moved higher for the first time in five sessions as it gained 0.74% to 939.459 points. Today, the European Central Bank published an updated ‘Survey of Professional Forecasters’ showing that inflation is now expected to increase further to 7.3% in 2022 before easing to 3.6% and 2.1% in 2023 and 2024 respectively. On the other hand, real GDP growth expectations were revised lower but were left unchanged for 2024. Elsewhere, UN Secretary General António Guterres announced that Russia and Ukraine brokered a deal which will result in the release of significant amounts of Ukrainian grain across international markets.
Today, BNF Bank plc announced that it received applications for a total value of over €20 million for its recent offer of €20 million 4.5% unsecured subordinated bonds 2027/2032. A total of €5.615 million were allocated to Authorised Financial Intermediaries through Pre-Allocation Agreements. Moreover, the remaining balance of €14.385 million were allocated to Authorised Financial Intermediaries via an Intermediaries’ Offer. The new bonds were admitted to trading on the Official List of the Malta Stock Exchange today and trading may commence from Monday 25 July.
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.