Daily Market Highlights (28.07.2021)

HSBC share price reaches 3-week high


The MSE Equity Price Index bounced off from yesterday’s 4-month low as it inched 0.21% higher to 3,782.941 points. The gains in MIA and HSBC outweighed the decline in BOV as overall trading activity remained stubbornly low at just €0.04 million. Download today’s Equity Market Summary.

Malta International Airport plc rebounded by 3.3% as it regained the €6.20 level on three deals totalling 3,733 shares. The airport operator will be publishing its interim financial results later on today.

HSBC Bank Malta plc climbed by 1.2% to the €0.83 level (a 3-week high) as 11,000 shares changed hands. HSBC will be publishing its 2021 interim financial results on 2 August.

In the same sector, Bank of Valletta plc eased by 2.2% to the €0.88 level across 8,055 shares. Tomorrow, BOV will be publishing its 2021 interim financial results.

This afternoon, Mapfre Middlesea plc published its interim results covering the six-month period ended 30 June 2021. During the first half of the year, the Group’s income from insurance activities climbed by 2.8% to €12.2 million. The improved performance emanates from the 16.8% gain to €8.1 million in long-term business following a significant increase in new business revenue as well as a positive investment return. On the other hand, revenue generated from non-life business fell by 17% to €4.1 million. Overall, the Group registered a profit after taxation of €7.61 million (H1 2020: €7.16 million), of which €4.93 million is attributable to shareholders (H1 2020: €4.86 million). Looking ahead, the Directors explained that it looks at the second half of 2021 with cautious optimism in an environment wary of the evolving effects of the pandemic both on the local and global economies.

The RF MGS Index gained 0.08% to a seven-week high at 1,105.064 points. Consumer confidence levels in Italy exceeded expectations in July but were lower than expected in France amid inferior expectations for standard of living and household financial situation. Elsewhere, residential property prices in the UK eased by 0.5% in July from record figures reached in the previous month. Meanwhile in the US, later today the Federal Reserve Chairman Jerome Powell is expected to announce the latest monetary policy decisions taken by the Federal Open Market Committee.

Yesterday, VBL plc (‘VBL’) issued a formal notice announcing the offer of (i) 35,714,286 new shares, representing 12.6% of the total issued share capital of VBL post-IPO which will be admitted to the Official List of the Malta Stock Exchange; and (ii) 35,714,286 shares to be sold by existing shareholders subject to the new shares being subscribed in full. The net proceeds from the new shares, which are expected to amount to up to €9.5 million, will form part of a wider long-term funding and investment plan of VBL that is aimed at funding the strategic development plans of the Group. The offer price for this initial public offering is set at €0.28 per share and is open for subscription to all categories of investors, subject to a minimum subscription amount of 10,000 shares (equivalent to €2,800) and in multiples of 100 shares thereafter. The offer period will run from 2 August until 24 September (or earlier in the case of oversubscription). The shares of VBL are expected to be admitted to the Official List of the Malta Stock Exchange on 12 October and trading is expected to commence on 13 October.