Daily Market Highlights (25.11.2022)

MSE Equity Price Index eases on low volumes


The MSE Equity Price Index retracted by 0.15% to 3,557.484 points reflecting the declines in the share prices of HSBC and Santumas whilst APS and MIA closed the day unchanged. Overall trading activity contracted sharply to €0.04 million compared to €0.28 million yesterday. Download today’s Equity Market Summary.

Santumas Shareholdings plc was the worst performing equity today as it dropped by 7.6% to the €1.34 level albeit on trivial volumes.

Low trading activity also took place in the equity of HSBC Bank Malta plc which moved 2.1% lower to the €0.715 level.

Also in the retail banking sector, APS Bank plc stayed at the €0.595 level after opening at a high of €0.60. A total of 7,550 shares changed hands.

Malta International Airport plc traded unchanged at the €5.70 level across 5,701 shares.

Today, Lombard Bank Malta plc issued a clarification in relation to the outcome of the Extraordinary General Meeting (“EGM”) which was held on 10 November 2022. In this respect, Lombard explained that immediately upon the conclusion of the EGM, the Bank received a letter from the National Development & Social Fund (“NDSF”), the contents of which were reflected in a media release also issued by the NDSF on the same date, seeking to provide context as to the manner in which the NDSF voted during the EGM. While noting the contents of these communications, Lombard reiterated its belief that the approval of the EGM Resolution allowing it to proceed with a Rights Issue remains the most appropriate means of raising capital for the Bank, in the best interests of the Bank and all its stakeholders. This was also highlighted by the Bank’s Chairman during his address to the EGM. The objective of the Rights Issue is to increase the Bank’s capital by circa €50 million which would enable Lombard to ensure compliance going forward with applicable regulatory capital requirements as well as enable further growth of the Bank in line with its revised strategy. In light of media reports which have been and may yet be published, Lombard also noted that contrary to what is suggested in such media reports, the Bank was not, prior to the EGM, ever in receipt of a letter from the NDSF informing the Bank of its objection to a new share issue nor of its intention to object to the Resolution and/or the eventual Rights Issue. Lombard concluded by explaining that it is currently evaluating its position so as to determine the way forward, always in adherence with all applicable laws, rules and regulations and in the best interests of the Bank and all its stakeholders. As a result, further announcements will be made in due course as and when necessary.

The RF MGS Index erased some of yesterday’s sharp uplift as it eased by 0.04% to 907.084 points. On the economic front, the German economy grew by more than expected in Q3 2022 compared to the same period in 2021. Elsewhere in China, investor sentiment drifted notably lower amid a spike in COVID-19 infections which reached a new daily high.


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.