Daily Market Highlights (22.09.2022)
MGS yields continue to rise in line with international developments
The MSE Equity Price Index moved 0.07% higher to 3,634.745 points reflecting the gain in the share price of BOV. Meanwhile, MIA, GO and APS traded unchanged as overall activity in equities was muted at €0.03 million. Download today’s Equity Market Summary.
Meanwhile, the RF MGS Index shed 0.35% to a fresh all-time low of 898.143 points following yesterday’s US Federal Reserve’s decision to raise its key interest rates by a further 75 basis points. In his address to the media, Fed Chair Jerome Powell hinted towards further monetary policy tightening as he remarked that to control the prevailing high inflation, there is no painless way to do it. The updated projections show that the Fed funds rate is expected to peak at 4.6% next year. Elsewhere, today the Bank of England raised rates by another 50 basis points, marking the seventh consecutive rate hike.
Trident Estates plc published its interim financial results covering the six-month period ended 31 July 2022. Trident registered record revenues (at interim stage) of €0.89 million (H1 2021/22: 0.54 million) reflecting the new rental income from Trident Park tenants which commenced during the period. On the expenditure side, total operating costs increased to €0.55 million (H1 2021/22: €0.43 million) reflecting higher levels of direct costs in relation to the Trident Park property operation. Overall, Trident posted a net profit of €0.15 million. The Directors of Trident explained that civil works have been completed, while a number of other finishing works are progressing towards completion. Trident Park is now operational, and an encouraging level of interest is being shown in the property. In this respect, negotiations are underway with interested tenants. Meanwhile, the company is currently evaluating options of how to best utilise Trident House (Qormi) which is expected to be vacated by January 2025 and the KFC outlet in Gzira, which will be vacated in the third quarter of this financial year. Trident’s equity remained inactive today.
Bank of Valletta plc advanced by 0.6% to regain the €0.88 level on a single trade of 3,638 shares.
Also among the large companies by market value, Malta International Airport plc held the €5.95 level across two deals totalling 430 shares.
GO plc remained at the €3.04 level on volumes of 5,300 shares.
A single trade of 4,946 shares left APS Bank plc at the €0.64 level.
Meanwhile, today Ryanair launched its winter schedule with a record 55 routes operating to and from Malta. Ryanair is forecasting a total of 3 million passenger movements during 2023 compared to 2.8 million in 2019.
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.