MSE Equity Price Index gains 2.3% in April

 

The MSE Equity Price Index remained practically unchanged at 3,621.453 points as the gains in MPC and Plaza were largely offset by the declines in MIDI, Main Street and Trident. Meanwhile, four other equities closed unchanged. The MSE Equity Price Index climbed 1.1% this week and 2.3% in April. Download today’s Equity Market Summary.

Bank of Valletta plc closed unchanged at the €1.03 level after failing to hold to an intraday high of €1.05 (+1.9%) across 13 deals totalling 30,182 shares.

Also within the banking sector, APS Bank plc held the €0.62 level on three trades totalling 6,500 shares. Yesterday, APS published a Quarterly Financial Update providing information about its performance in Q1 2023 when compared to the same period in 2022. Net interest income surged by 24.9% to €18.4 million as the increase in absolute terms in gross interest income amid the continued strong growth in the loan book, supported by the higher interest income from treasury assets, outweighed the increase in interest expenses. APS also registered a 2.6% increase in non-interest income to €2.28 million and recognised a net gain on financial assets of €0.67 million, compared to the net loss of €3.62 million in 2022 amid the considerable adverse movements across financial markets which had negatively impacted the performance of the APS Funds SICAV. Overall, APS reported a quarterly profit before tax of €7.91 million compared to €1.85 million in Q1 2022. APS registered a strong growth in its loan book which outweighed the increase in customer deposits, leading to a higher loan-to-deposit ratio of 89% compared to 87% as at the end of 2022. Shareholders’ funds increased by 3.1% to €258.2 million, which translates to a net asset value per share of €0.704 (31 December 2022: €0.683).

Malta International Airport plc traded flat at the €5.55 level across two deals totalling 335 shares.

A single deal of 2,000 shares left the share price of Simonds Farsons Cisk plc at the €6.95 level. Farsons is expected to publish the results for the financial year ended 31 January 2023 on 18 May. The Directors will also consider the a final dividend to be recommended at the forthcoming Annual General Meeting scheduled for Thursday 15 June 2023.

Malta Properties Company plc surged by 5% to the €0.42 level on two trades totalling 5,650 shares.

Plaza Centres plc moved 2.8% higher to a five-month high of €0.74 across four deals totalling 34,000 shares. On Wednesday, Plaza published its Annual Report and Financial Statements for the year ended 31 December 2022, showing an overall improvement over the previous year. Profit for the year attributable to shareholders amounted to €0.77 million which is 48% higher than the €0.52 million figure reported for the 2021 financial year. Shareholders’ funds declined by 0.8% to €26.6 million which translates into a net asset value per share of €1.0443 (31 December 2021: €1.0525). The Directors are recommending the payment of a final net dividend of €0.0137 per share to all shareholders as at close of trading on 11 May 2023 subject to shareholders’ approval at the upcoming Annual General Meeting scheduled to be held on Wednesday 14 June 2023. Coupled with the net interim dividend of €0.0098 per share paid out in August 2022, the total net dividend for the year amounts to €0.0235 per share, unchanged from the previous year. The total net dividend for 2022 translates into a payout ratio of 78%.

MIDI plc shed 0.7% to the €0.292 level on one trade of 20,600 shares. On Tuesday, MIDI published its results for the 2022 financial year. Revenue amounted to €3.41 million compared to €9.42 million in 2021 as MIDI had no inventory of residential apartments for sale during 2022. In fact, revenues from the ‘Development and Sale of Property’ segment amounted to just €0.23 million compared to €6.6 million in 2021. Meanwhile, income generated from the ‘Rental and Management of Property’ segment improved to €3.19 million compared to €2.81 million in 2021 as the company did not provide any rent concessions to its tenants in 2022 in contrast to the previous year. The financial performance was dented by a €1.05 million loss in fair value attributable to investment property. Overall, the net loss for the year amounted to €2.28 million. Shareholders’ funds contracted by 1.1% to €101.3 million, which translates into a net asset value per share of €0.4729.

Main Street Complex plc was today’s worst performing equity as it plunged by 6.5% to an eight-month low of €0.43, albeit on trivial volumes. On Monday, Main Street Complex published its 2022 annual report. Revenue increased by 23.4% to €0.79 million, which is still 4% lower than the record revenues of €0.82 million generated in 2019. Excluding depreciation, EBITDA surged by 29.1% to €0.57 million whilst operating profit improved considerably to €0.46 million, albeit margins remained below those achieved prior to the pandemic. Overall, Main Street reported a net profit of €0.34 million. Shareholders’ funds contracted by 4.8% to €10.9 million which translates into a net asset value per share of €0.563. The Directors are recommending the payment of a final net dividend of €0.0109 per share to shareholders as at close of trading on 30 May 2023, subject to shareholders’ approval during the upcoming Annual General Meeting scheduled to be held on 12 June 2023. The final dividend is expected to be paid by not later than 16 June 2023. Coupled with the net interim dividend per share of €0.00671 which was paid out in September 2022, the total net dividend for the year amounts to a record of €0.0176 per share (9.7% higher than the total net dividend of €0.0161 for FY2018), representing the company’s entire earnings generated throughout the year. In their commentary, the Directors stated the shopping complex is fully occupied and the footfall in the first quarter of 2023 exceeded that of the same period last year.

A single deal of 409 shares pulled the share price of Trident Estates plc down by 2.2% to the €1.35 level. Trident is expected to publish the results for the financial year ended 31 January 2023 on 19 May. The directors will also consider the declaration of a dividend to be recommended to the Annual General Meeting which is scheduled for 16 June 2023.

On Wednesday, Hili Properties plc published its Annual Report for 2022. Total revenues increased by 48.2% to €12.5 million reflecting the increase in rental income through the acquisitions in Lithuania, Latvia and Romania. On the expenditure side, operating costs increased by 14.8% to €4.13 million. EBITDA surged by 72.3% to a record €8.45 million, translating in an EBITDA Margin of 67.4% from 58% in the previous year. Shareholders’ funds increased by 4.8% to €116.2 million which translate into a net asset value per share of €0.2899 (2021: €0.2766). The Board of Directors will be meeting on 2 May to consider the recommendation of a dividend.

Yesterday, Lombard Bank Malta plc published its Annual Report and Financial Statements for the year ended 31 December 2022, showing improvement in net interest income and net fee and commission income. The financial performance was also boosted by the net reversal in expected credit losses of €16.2 million. Overall, net profit attributable to shareholders amounted to €17.5 million (2021: €7.48 million), which translates to a return on average equity of 12.8% (2021: 5.7%). As at 31 December 2022, shareholders’ funds amounted to €136.2 million, equivalent to a net asset value per share of €1.5013. In order to preserve capital, the Board did not recommend the payment of a dividend. However, the Directors received regulatory approval for a bonus share issue of one share for every forty-five (45) shares held. The bonus issue will be funded by a capitalisation of reserves amounting to €0.25 million and will be allotted to shareholders as at close of trading on 17 July, subject to approval of the AGM scheduled for 22 June 2023.

Today, RS2 Software plc, MedservRegis plc, and M&Z plc also published the annual report for the year ended 31 December 2022 but their respective equities were not active today. The Directors of M&Z plc are recommending a final net dividend per share of €0.01986. Coupled with the net interim dividend per share of €0.009 paid in August 2022, the total net dividend per share amounted to €0.02886, in line with the dividend policy announced in the IPO last year.

The RF MGS Index declined by 0.32% to 876.758 points. During the day, yields across the eurozone moved lower with the 10-year German Bund yield easing to around 2.35% compared to yesterday’s high of 2.46%. The Euro Area GDP moved up by 0.1% in the first quarter of 2023 following a flat final quarter of 2022. The figure was however below the forecasted figure of 0.2%. The GDP figures of France, Spain and Italy exceeded expectations while the German GDP growth was marginally below expectations. Meanwhile, preliminary inflation estimates for April showed that the inflation rates in France (5.9%) and Spain (3.8%) were above expectations while the German inflation rate of 7.2% was lower than the expected 7.3%.

 

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.