Daily Market Highlights (27.07.2022)
MIA issues strong profit forecasts
The MSE Equity Price Index rebounded by 0.28% to 3,678.294 points as the gains in four shares offset the declines in MIDI and Mapfre Middlesea. Meanwhile, four other companies closed the day unchanged as overall trading in equities improved to €0.1 million compared to €0.07 million yesterday. Download today’s Equity Market Summary.
Today’s main development across the local equity market was the publication by Malta International Airport plc of its interim financial results showing a marked improvement in performance with revenues amounting to €37.3 million and an EBITDA of €23.3 million. Moreover, MIA reported a net profit of €10.7 million compared to the loss of €2.69 million posted in the first half of 2021. The airport operator added that given the strong recovery in air travel, it expects total passenger movements this year to exceed 5.4 million (which would be superior to the total traffic handled in 2016). Moreover, this level of traffic would result in revenues of over €82 million, an EBITDA of over €50 million, and a net profit of over €23 million. MIA’s equity traded flat today at the €5.95 level across 5,500 shares.
Also among the large companies by market value, GO plc stayed at the €3.00 level on a total of 1,990 shares.
A single deal of 25,000 shares left the share price of AX Real Estate plc at the €0.54 level.
Within the same segment, Malta Properties Company plc remained at the €0.494 level albeit on trivial volumes.
Low trading activity also took place in the equity of Mapfre Middlesea plc which eased by 0.6% to the €1.78 level.
MIDI plc slumped 9.1% back to the €0.30 level across 33,000 shares.
In contrast, Plaza Centres plc rallied strongly to the €0.80 level on volumes totalling 11,250 shares. Shareholders as at close of trading on Wednesday 3 August will receive a net interim dividend of €0.0098 per share which is payable on Friday 19 August.
PG plc recaptured the €2.14 level (+4.9%) across 9,500 shares.
APS Bank plc advanced by 0.8% to the €0.66 level on a total of 12,027 shares. Tomorrow, the Bank will be publishing its interim results.
A single deal of 4,000 shares lifted the share price of M&Z plc by 0.7% to the €0.755 level.
The RF MGS Index moved higher for the fourth consecutive day as it advanced by a further 0.08% to 950.266 points. As financial markets turn their focus on today’s monetary policy meeting by the US Federal Reserve, the IMF yesterday issued an update to its economic forecasts showing that the global economy is now expected to grow by 3.2% in 2022 compared to the earlier projection of an increase of 3.6%. Moreover, as inflation projections were lifted higher, the IMF is expecting the world economy to grow by 2.9% in 2023 although this estimate could ease to 2% if further harsh COVID-19 restrictions are imposed in China and/or geopolitical tensions lead to additional hurdles to global trade. Meanwhile, today the Central Bank of Malta issued its July Economic Update showing that although business conditions remained strong, a deterioration in sentiment has been recorded especially in the retail sector. Moreover, although price expectations eased across all sectors, they remained elevated from a historical perspective. In terms of Malta’s fiscal position, the Government recorded a surplus as revenues rose at a much faster pace than expenditure. Elsewhere across the banking sector, residents’ deposits increased by just over 11% compared to the corresponding period in 2021 whilst demand for credit moderated to 6.8%.
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.