Daily Market Highlights (23.02.2023)
Trading in MIA takes centre stage
The MSE Equity Price Index advanced by 0.27% to 3,592.692 points as the gains of MIA, GO, MPC and PG outweighed the declines of BOV and Malita. Meanwhile, two other equities closed unchanged as overall trading activity amounted to €0.26 million. Download today’s Equity Market Summary.
Malta International Airport plc moved 0.9% higher to the €5.70 level across eleven trades totalling 26,978 shares having a market value of €0.15 million. Yesterday, MIA published the Annual Report for the 2022 financial year. Revenue amounted to €88 million, which is nearly double the €47.4 million figure for 2021, but below the 2018 and 2019 revenue levels of €92.2 million and €100.2 million respectively. In 2022, MIA reported that it generated a net profit of €38.9 million inclusive of the €12 million tax credit awarded to MIA for the losses suffered during the Covid-19 pandemic. Excluding the tax credit, the adjusted net profit amounted to €26.9 million compared to €7.0 million in 2021. In the context of the significant improvement in the financial performance in 2022, the Board of Directors is recommending a final net dividend of €0.12 per share to be paid not later than 26 May 2023 to all shareholders as at close of trading on 4 April 2023. MIA had last paid a dividend in September 2019 which amounted to €0.03 per share and related to the interim net dividend for the 2019 financial year.
PG plc climbed 1.0% to the €2.00 level across three deals totalling 43,250 shares.
GO plc was today’s best performing equity as it by surged 4.7% to a five-month high €3.10, albeit on a single deal of 500 shares.
A single trade of 1,200 shares pushed the share price of Malta Properties Company plc up by 1.8% to the €0.46 level. Yesterday, Malta Properties Company plc announced that its Board of Directors is scheduled to meet on Tuesday 14 March 2023 to consider and approve the financial statements for the year ended 31 December 2022. The Directors will also consider the declaration of a dividend.
In contrast, Bank of Valletta plc shed 1.6% to the €0.895 level across three trades totalling 3,989 shares.
Malita Investments plc plunged 7.7% to the €0.60 level across three deals totalling 4,000 shares.
HSBC Bank Malta plc traded flat at the €1.00 level across volumes of 10,919 shares. On Tuesday, HSBC published its annual results for the 2022 financial year. Net interest income increased by 10.7% to €108.2 million, driven by higher interest rates in the second half of the year. Excluding insurance operations, non-interest income remained virtually unchanged at €31.3 million. Meanwhile HSBC Life Assurance (Malta) Limited reported a profit before tax of €4.8 million in contrast to the loss before tax of €3 million in 2021. On the expenditure side, operating costs declined by 2% to €103.0 million and the Bank’s performance was boosted by the net release of expected credit losses of €9.6 million. Overall, HSBC Malta reported a profit before tax of €57.3 million which is more than double the reported figure of €26.9 million in 2021. The net profit figure for 2022 amounted to €37.6 million (equivalent to €0.104 per share) which, in turn, translates into a return on average equity of 7.61%, the highest level since 2016. The Group’s net asset value per share as at 31 December 2022 was of €1.380 compared to €1.359 as at the end of 2021. The Board of Directors is recommending a final net dividend of €0.0364 per share. This represents a payout ratio of 35% which the Directors explained is based on the adverse price movements on financial instruments incurred in 2022, the expected changes in capital regulations and the uncertain economic outlook. The dividend will be paid on 25 April 2023 to all shareholders as at close of trading on 17 March 2023 subject to approval by the Annual General Meeting scheduled for 20 April 2023.
International Hotel Investments plc held the €0.60 level on two trades totalling 4,238 shares.
The RF MGS Index eased by 0.03% to 875.598 points as the MGS yield curve steepened following the increase in yields towards the longer end of the yield curve. Yesterday, the Federal Reserve published the minutes of its latest monetary policy meeting which was concluded on 1 February. The minutes showed that rate setters concluded that a smaller rate hike was merited when compared to previous meetings because signals showed that inflation was going down. However, in view that inflation remained well above the 2% target and since the tight labour markets were supporting price increases, the committee members believed that further rate hikes will be required.
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.