Daily Market Highlights (24.02.2023)

MSE Equity Price Index climbs to 3-month high


The MSE Equity Price Index posted its largest uplift in seven weeks advancing by 1.57% to 3,649.195 points as six equities gained. The equity index is now at the highest level since early November 2022. Meanwhile, Lombard and Malita closed unchanged as overall trading activity amounted to €0.11 million. Download today’s Equity Market Summary.

Malta International Airport plc added 2.6% to a 3-month high of €5.85 across five trades totalling 5,925 shares. On Wednesday, MIA published the 2022 financial results. 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.

Bank of Valletta plc regained the €0.93 level (+3.9%) across six deals totalling 27,000 shares.

Also in the banking sector, HSBC Bank Malta plc advanced by 4% to a near 3-year high of €1.04 across four trades totalling 7,895 shares. On Tuesday, HSBC published its annual results for the 2022 financial year. 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.

APS Bank plc was today’s best performing equity as it by surged 4.2% to the €0.615 level across three deals totalling 5,000 shares.

A single deal of 322 shares pushed the share price of PG plc 3.0% higher to the €2.06 level.

Hili Properties plc added 1.8% to the €0.224 level on one deal of 4,000 shares.

Lombard Bank plc (35,008 shares) and Malita Investments plc (2,000 shares) held the €0.95 and €0.60 levels respectively.

Today, BMIT Technologies plc announced that its Board of Directors is scheduled to meet on Wednesday 8 March 2023 to consider and approve the financial statements for the year ended 31 December 2022. The Board will also consider the declaration of a final dividend.

Yesterday, AX Real Estate plc announced that its Board of Directors is scheduled to meet on Monday 27 February 2023 to consider and approve the financial results for the financial year ended 31 October 2022.

The RF MGS Index advanced by 0.40% to 879.121 points and marked the first weekly gain in three weeks as it closed the week 0.24% higher. The German economy contracted by 0.4% in the fourth quarter of 2022 amid lower levels of private consumption. However, a more recent consumer sentiment measurement showed improvement during January and February 2023, albeit the overall consumer climate remains negative. Elsewhere, in the US, the Personal Consumption Expenditure Price Index for January was 5.4% higher than the previous year. The reading, which is the Federal Reserve’s preferred gauge for inflation, exceeded expectations and renewed expectations to further interest rate hikes.

This afternoon the Treasury Department announced the results of this week’s Malta Government Stock issues. The Treasury exercised its over-allotment option to increase the overall issue to just under €350 million. The total value of applications received from retail investors in the two Malta Government Stocks amounted to just below a nominal value of €179.5 million. These applications will be accepted in full and the exact amount subscribed for by retail investors in each of the MGS’s will be announced in due course. Meanwhile, a total €170 million were allotted to institutional investors across both issues. In the 3.50% MGS 2028 (VI), a total of €155.5 million were allotted at prices ranging from a high of 101.25% (equivalent to the fixed offer price to retail investors) to a cut-off rate of 98.23% (YTM: 3.87%). In the 4.0% MGS 2043 (I), a total of €14.5 million were allotted to institutional investors at prices ranging from 100.00% (equivalent to the fixed offer price to retail investors) to a cut-off rate of 93.85% (YTM: 4.46%).



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.