Daily Market Highlights (28.07.2023)

MSE Equity Price Index reaches 14-month high


The MSE Equity Price Index advanced by 0.44% to the highest levels since May 2022 of 3,802.473 points as the gains in APS, BMIT, HSBC, Malita and Trident outweighed the declines in FIMBank and BOV. Meanwhile, three other equities closed unchanged as the total trading activity was muted at €0.16 million. Download today’s Equity Market Summary.

APS Bank plc gained 1.6% to a six-week high of €0.62 across four trades totalling 14,900 shares. Yesterday, APS published its interim results for the first six months of the year in which APS generated a record of €37.1 million in net interest income and also recorded €5.23 million from its non-interest income activities. Profit for the period attributable to shareholders amounted to €10.8 million. As at 30 June 2023, shareholders’ funds amounted to €261.4 million which translates to a net asset value per share of €0.693. The board declared a net interim dividend of €0.0056 per share (equivalent to €2.1 million) to all shareholders as at close of trading on 23 August 2023. Shareholders can elect to receive the dividend either in cash or through the issuance of new ordinary shares at an attribution price of €0.57 per share. The CEO stated that later this year, APS will launch an issuance programme of Tier 2 debt instruments.

Also in the banking sector, HSBC Bank Malta plc climbed 4.2% to the €1.25 level over three deals totalling 12,264 shares. HSBC is set to publish its interim financial statements for the six-month period ended 30 June 2023 on Tuesday 1 August.

Trident Estates plc was today’s best performing equity as it surged by 6.4% to a three-week high at the €1.33 level across two trades of 1,500 shares.

Malita Investments plc moved 3.3% higher to the €0.62 level across three deals totalling 72,957 shares.

BMIT Technologies plc advanced by 2.5% to the €0.41 level, albeit on trivial volumes. BMIT is set to publish its interim financial statements for the six-month period ended 30 June 2023 on Friday 4 August.

In contrast, Bank of Valletta plc eased by 0.8% to the €1.27 level after partially recovering from an intra-day low of €1.25 (-2.3%) across eleven trades totalling 45,326 shares. BOV recovered from. Yesterday, BOV published its interim results for the first half of 2023. Net interest income surged by 83.3% to €159.9 million, but non-interest income dropped by 3% to €42.7 million. BOV registered an operating profit of €100.9 million, compared to a loss of €72.9 million in the first six months of 2022, which included the €102.7 million litigation settlement charge in relation to the Deiulemar court case. BOV’s net profit for the period amounted to €69.0 million. In a press release issued after the publication of the financial statements, BOV remarked that: “the Board is now in the process of compiling forward-looking data and analyses in order to consider the payment of a dividend out of the profits realised in the first half of 2023. As explained at the Bank’s latest AGM, dividend decisions at BOV are not based on a simple calculation but need to meet important risk and other regulatory criteria, which focus on the strength and viability of the Bank’s future business. This is essential to safeguard the best interests of our shareholders and wider stakeholders.”

FIMBank plc slumped by 3.2% to an all-time low of USD0.179 level on a single deal of 44,708 shares.

Meanwhile, GO plc traded flat at the €2.90 level on two deals totalling 1,970 shares. GO is set to publish its interim financial statements for the six-month period ended 30 June 2023 on Monday 7 August.

Mapfre Middlesea plc closed unchanged at the €1.51 level as 12,000 shares changed hands. Last Wednesday, Mapfre Middlesea plc published its interim financial statements for the six-month period ended 30 June 2023. The company explained that it has adopted two new International Financial Reporting Standards which also resulted in the restatement of the 2022 financial statements. In this context, the total equity of the Group was reduced by €69.1 million with the major impact emanating from the de-recognition of Mapfre MSV life’s Value of in-force business amounting to €84.0 million. Meanwhile, the Group also recognised a positive movement of €14.7 million reflecting a change in technical provisions. In terms of financial performance, in the first half of the year, Mapfre Middlesea generated pre-tax profits of €10.7 million compared to a restated figure of €3.0 million for the first six-months of 2022.

International Hotel Investments plc held the €0.545 level on muted activity.

Today, Lombard Bank Malta plc announced that its Board of Directors is scheduled to meet on Tuesday 29 August 2023 to consider and approve the interim financial statements for the six-month period ended 30 June 2023.

The RF MGS Index eased by 0.16% to 870.270 points as the drop in prices of long-term MGS outweighed the gains in shorter-dated MGS, resulting in a steeper yield curve. Yesterday, apart from increasing rates by a further 25 basis points, the ECB also published the results of the ECB survey of professional forecasters, which showed that headline inflation was expected to decline from 5.5% in 2023 to 2.7% in 2024 and 2.2% in 2025. Meanwhile, real GDP growth is expected to remain modest, but a constant increase in economic activity over the projected period to 2025. Meanwhile in the US, the economy grew by an annualised rate of 2.4% in the second quarter of 2023, ahead of expectations of 2%.


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.