Daily Market Highlights (26.05.2022)
APS publishes IPO Prospectus
The MSE Equity Price Index remained virtually unchanged at 3,705.374 points as the gains in HSBC, BMIT and MPC were offset by the declines in GO and the ordinary shares of RS2. Meanwhile, MIA and AX Real Estate closed unchanged as overall trading activity in equities eased to just €0.04 million from €0.14 million yesterday. Download today’s Equity Market Summary.
Today, APS Bank plc published a Prospectus in relation to the offer for sale of up to 110 million shares at €0.62 each with a total value of just over €66 million. A total of 69,681,981 shares (€41.4 million) have already been reserved for subscriptions by Authorised Intermediaries and as such, the remaining amount of 40,318,019 shares (€25 million) are available for subscription during the upcoming offer period. The proceeds from the share issue will constitute an integral part of the Bank’s capital plan to further strengthen its CET 1 capital, and also enable APS to achieve its strategic objectives whilst ensuring compliance with regulatory capital requirements. The offer period comes to a close on 17 June, but the Bank is reserving the right to close the offer period prior to the closing date.
BMIT Technologies plc (452 shares) and Malta Properties Company plc (1,158 shares) both gained 3% to €0.484 and €0.52 respectively. Today, MPC announced that it submitted an application to the MFSA requesting the admissibility to listing of a Bond Issuance Programme of up to €50 million. MPC noted that further details will be communicated to the market in due course.
The only other positive performing equity today – HSBC Bank Malta plc – added 0.6% to the €0.78 level albeit on trivial volumes.
GO plc dropped by 1.2% to the €3.18 level on a single deal of 1,000 shares. Today, GO published an updated Financial Analysis Summary which includes the 2022 forecasts for the Group’s telecoms operations in Malta. Revenues are expected to increase by 4.9% to €123.5 million largely reflecting stronger level of hardware sales, while EBITDA is anticipated to grow by 0.8% to €48.2 million. Overall, the local telecoms arm of GO is expected to register a net profit of €12.2 million compared to €13.6 million in 2021.
The ordinary shares of RS2 Software plc eased by 0.6% to the €1.63 level across four deals totalling 3,050 shares.
Malta International Airport plc held on to the €5.95 level after opening at a low of €5.90 (-0.8%). A total of 2,000 shares changed hands.
AX Real Estate plc traded flat at the €0.55 level across 41,000 shares. On Monday, AX Real Estate published an updated Financial Analysis Summary showing that the company is expecting to generate an operating profit of €7.4 million during the current financial year ending on 31 October 2022. The forecasts also show a dividend distribution of €0.0246 per share for FY2021/22, in line with the projections at the time of the IPO.
The RF MGS Index extended yesterday’s uplift as it advanced by a further 0.48% to 987.645 points. Yesterday, the Federal Reserve published the minutes of its most recent monetary policy meeting. These showed that the central bank is strongly committed to tackling the prevailing high inflation and is planning two further 50-basis point rate hikes at the coming meetings scheduled to be held in June and July. Meanwhile, data published today showed that the US economy contracted by an annualised rate of 1.5% in Q1 2022.
Today, Cablenet Communications Systems plc published an updated Financial Analysis Summary showing that revenues in 2022 are expected to surge by a further 17.8% to a record of €63.1 million while EBITDA is anticipated to climb by over 20% to €18.6 million. Overall, Cablenet is anticipating a net loss of €4.5 million reflecting the adverse impact of depreciation which are expected to amount to almost €21 million. The company noted that the additional investments that it is currently pursuing across its various business lines are expected to continue to generate positive results going forward.
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.