Daily Market Highlights (25.07.2022)

MSE Equity Price Index resumes downward trend


The MSE Equity Price Index opened the week in negative territory as it eased by 0.17% to 3,682.644 points. The declines in four companies outweighed the uplift in APS Bank whilst three other equities traded unchanged. Overall trading activity in equities improved to €0.14 million compared to just €0.03 million last Friday. Download today’s Equity Market Summary.

GO plc retracted by 0.7% back to the €3.00 level across 12,630 shares.

Also among the large companies by market value, Bank of Valletta plc lost 1.1% to the €0.91 level albeit on just 1,507 shares. The Bank is due to publish its interim results on Thursday 28 July.

Low trading activity also took place in the equity of AX Real Estate plc which dropped by 1.8% to the €0.54 level across 5,000 shares.

The other negative performing equity today was Malta Properties Company plc as it moved back by 0.8% to the €0.494 level on a total of 19,700 shares.

APS Bank plc continued to trade within a tight range as the Bank’s share price rebounded by 0.8% to the €0.655 level across 10,983 shares. APS is due to publish its interim results on Thursday 28 July.

Elsewhere, Simonds Farsons Cisk plc held on to the €7.45 level on volumes totalling 2,274 shares. Last Friday, 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.

Three deals totalling 7,500 shares left the share price of Malta International Airport plc at the €5.95 level. MIA is due to publish its interim results on Wednesday 27 July.

PG plc also traded flat at the €2.14 level across 8,000 shares.

The RF MGS Index extended last Friday’s rebound as it advanced by a further 0.83% to 947.228 points. Fresh economic data in Germany raised concerns that Europe’s powerhouse economy is heading closer to a recession as various indices gauging business expectations reflected growing uneasiness among manufacturers, builders, wholesalers, and retailers. Meanwhile, today the Central Bank of Malta published its annual Financial Stability Report showing that Malta’s financial system remained robust throughout 2021 despite the challenges brought about by the pandemic. In fact, banks reported improved asset quality and profitability. Similarly, insurance companies recorded better returns amid a general upswing across financial markets and higher income received from premia. Going forward, the report notes that the current war in Ukraine and high inflation pose risks, and urged credit institutions not to engage in excessive risk taking and set aside adequate provisions whilst maintaining healthy liquidity and capital buffers.


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.