Daily Market Highlights (27.06.2023)

AX Real Estate releases interim results


The MSE Equity Price Index advanced by 0.08% extending yesterday’s two-week high to 3,739.064 points as the gain in APS outweighed the decline in MIA. Meanwhile, three other equities closed unchanged as the total trading activity was muted at €0.02 million. Download today’s Equity Market Summary.

APS Bank plc shares rose 3.4% to close at the €0.61 level across two trades totalling 11,000 shares.

On the other hand, Malta International Airport plc shed 0.9% to the €5.50 level over two deals totalling 700 shares.

Meanwhile, International Hotel Investments plc held the €0.53 level across two trades totalling 1,129 shares.

Also amongst equities with a large market cap, HSBC Bank Malta plc traded flat at the €1.20 level over two deals totalling 3,496 shares

Likewise, the ordinary shares of RS2 Software plc closed unchanged at the €1.35 level on a single trade of 186 shares.

Yesterday evening, AX Real Estate published its interim financial results covering the six-month period ended 30 April 2023. Rental revenues increased by 6.2% to €3.84 million, reflecting higher income from the leasing of the company’s various properties. Nonetheless, overall revenues declined by 11.7% as the Group had generated €0.73 million from a sale of property in the same period last year. Operating expenses (net of other income) amounted to €0.53 million, compared to almost €1 million in the previous corresponding period, which also included the cost of property sold. As a result, operating profit eased by 1.9% to €3.30 million (H1 2022: €3.37 million) which translates into an operating profit margin of 86.1% (H1 2022: 77.5%). The Statement of Financial Position as at 30 April 2023 compared to 31 October 2022 shows that total assets increased by 2.5% to €294.1 million. Total liabilities increased by 6.5% to €154.2 million, with total debt amounting to €125.1 million compared to €116.4 million as at 31 October 2023. Overall, total equity stood at €139.9 million (31 October 2022: €142.0 million) which translates to a net asset value per share of €0.5099 (31 October 2022: €0.5177).

Yesterday, MedservRegis plc published an updated financial analysis summary. Revenue in 2023 is expected to reach €63.8 million, 4.7% less than the €66.9 million reported in 2022. The decline mostly reflects a decline in the ILSS revenue segment. On the other hand, EBITDA is predicted to increase by 26.6% to €14.4 million from €11.4 million in the previous year.

On Friday VBL plc, announced that it has identified a number of potential private investors which have shown an interest in the subscription of new shares with a view of raising new equity on a private placement basis for a total subscription value of up to €1 million.

The RF MGS Index trended higher for the fifth consecutive day as it gained a further 0.12% to 875.624 points, reflecting yesterday’s decline in the eurozone’s benchmark yields. In contrast, yields have today rebounded, amid intensifying volatility, especially after ECB President Christine Lagarde re-enforced the idea that the ECB will continue to raise interest rates as inflation is expected to linger. Ms Lagarde confirmed that the ECB will raise rates further in July and said that in the near term it is unlikely that the ECB will be in a position to declare that rates have peaked.



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.