Daily Market Highlights (22.12.2021)

Local equity market snaps 4-day winning streak

 

The MSE Equity Price Index moved lower for the first time in five trading sessions as it shed 0.63% to 3,795.675 points, reflecting the declines in BOV, GO, PG and Farsons. Lombard was today’s only positively performing equity, while MIA, BMIT and MPC remained unchanged. Out of the €0.13 million worth of shares traded today, over 63% of the value traded were on the shares of PG. Download today’s Equity Market Summary.

PG plc eased by 0.8% to the €2.40 level on three deals totalling 33,450 shares. Last week, PG published its half-yearly results covering the six-month period ended 31 October 2021. Total revenues increased by 12.1% to a record (at interim stage) of just under €71 million reflecting the higher level of turnover achieved by both the ‘Supermarkets & Associated Retail Operations’ and the ‘Franchise Operations’. The growth in business also led a surge in net profits to €6.21 million (+20.7%) whilst the company also significantly reduced its net borrowings to less than €1 million. In their commentary, the Directors noted the company’s commitment to additional investments including the possibility of pursuing new growth opportunities in its core line of business.

A single trade of 520 shares moved the share price of Simonds Farsons Cisk plc 2.4% lower to the €8.30 level.

GO plc dropped by 3.6% to the €3.26 level as 1,000 shares changed hands.

Bank of Valletta plc declined by 1.1% to the €0.87 level after partially recovering from an intraday low of €0.85 (-3.4%) across four trades totalling 25,484 shares.

Also in the retail banking sector, Lombard Bank Malta plc edged 0.5% higher to the €1.84 level after failing to hold to an intraday high of €1.85 (+1.1%) across four deals totalling 5,460 shares.

BMIT Technologies traded flat at the €0.486 level on two trades totalling 9,000 shares.

Similarly, Malta International Airport plc stayed at the €5.60 level on low activity totalling 330 shares.

Malta Properties Company plc remained at the €0.53 level on negligible volumes.

The RF MGS Index registered the sharpest daily decline in over a month as it lost 0.50% to 1,086.825 points. Eurozone sovereign bond yields continued to climb on indications that the Omicron variant is less severe than all previous dominant strains of COVID-19. Furthermore, inflation fears returned as gas prices in Europe reached new record highs yesterday following a shortage of gas supply from Russia to Germany. Elsewhere, today the US Bureau of Economic Analysis announced that the US economy is expected to advance at a faster pace during the last quarter of this year when compared to the 2.3% annualised growth in the third quarter of 2021.

 

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.

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