Daily Market Highlights (27.10.2023)

BOV climbs to 3-week high


The MSE Equity Price Index remained practically unchanged at 3,600.852 points as the gains in BOV and Lombard outweighed the decline in MIA. Meanwhile, APS closed unchanged as total trading activity totalled €0.11 million. Download today’s Equity Market summary.

Bank of Valletta plc gained 0.8% to a three-week high of €1.25 after recovering from an intraday low of €1.21 (-2.4%) across fifteen trades totalling 41,030 shares. Following the close of yesterday’s trading session, BOV declared a net interim dividend of €0.03 per share, subject to regulatory approval. Shareholders of BOV as of the close of trading on Friday 17 November will be entitled to receive the dividend, payable on Wednesday 6 December.

Also in the banking sector, Lombard Bank Malta plc advanced by 0.7% to the €0.755 level on a single deal of 2,630 shares.

The share price of Loqus Holdings plc climbed to the €0.14 level across two trades totalling 8,018 shares.

Malta International Airport plc shed 0.9% to an almost-three year low of €5.40 across ten trades totalling 9,577 shares.

APS Bank plc held the €0.575 level on a single trade of 1,500 shares. Yesterday, APS published its financial results for the nine-month period ended 30 September. Net interest income surged by 18.9% to €55.5 million and also recorded strong growth of 13.9% in net fee and commission income to €6.2 million. APS also registered gains of around €1.1 million on other financial assets, foreign exchange and other income. The Group also recorded a marginal net impairment charge of €0.25 million. As such, net operating income improved to €62.6 million compared to €44.9 million in the first nine months of 2022. Overall, the Group reported a net profit of €15 million, which translates into an annualised return on average equity of 7.4%. When compared to 31 December 2022, shareholders’ funds increased by 5.9% to €265.2 million, which translates into a net asset value per share of €0.702. Last Wednesday, APS published a Base Prospectus and Final Terms relating to the issuance of up to €50 million 5.8% unsecured subordinated bonds maturing between 2028 and 2033. The Intermediaries’ Offer will open on Monday 30 October until Friday 17 November and since the bonds are considered complex products, prospective investors wishing to participate will be subjected to a Suitability Assessment.

The RF MGS Index increased by 0.52% to 849.728 points. Following the ECB’s decision to keep its interest rates unchanged, President Christine Lagarde commented that the Euro Area economy is expected to remain weak for the rest of the year, however the economy should strengthen when inflation tames due to an increase in real household income. Ms Lagarde stated that the effects of past rate hikes are still being transmitted into financing conditions and thereby will continue to push down inflation going forward. Meanwhile, in the US, month-over-month personal spending continued to increase more than forecasted during September, highlighting the underlying strength of the economy.

Yesterday evening, AX Group plc announced the basis of acceptance and allocation policy in relation to the offer of €40 million 5.85% unsecured bonds redeemable in 2033.In total, AX Group received 3,411 applications for a total value of €43.7 million. As a result of the over-subscription, the offer was closed ahead of schedule. Holders of the €40 million 6.0% AX Investments plc 2023 bonds who exercised their preference to exchange their maturing bonds into the new bonds amounting to €28.4 million (representing 71% of the total maturing bonds) were allotted in full. The remaining balance was allocated without priority between existing bondholders applying in excess of their holding in Exchangeable Bonds and other preferred applicants (employees of the AX Group and holders of other AX securities). Preferred applicants were allocated 75.6% of the amount applied.


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.