Daily Market Highlights (28.08.2023)

 MSE Equity Price Index drops to six-week low


The MSE Equity Price Index extended its losing streak to the tenth consecutive session as it fell by a further 0.41% to a six-week low of 3,727.298 points, reflecting the declines of IHI and PG. Meanwhile, four other equities closed unchanged as the total trading activity amounted to €0.11 million. Download today’s Equity Market Summary.

A single trade of 20,000 shares pulled the share price of PG plc down by 1% to a two-week low of €2.06. Last Thursday, PG published its annual results for the financial year ended 30 April 2023, in which PG generated record revenues of €174 million and record operating profit of €18.9 million. Nonetheless, the EBIT margin dropped to 10.9% compared to 12.3% in the previous financial year. PG reported a net profit of €12.7 million which is 5.2% higher than the previous comparable figure of €12.0 million. Looking ahead, the company stated that the 2023/24 financial year started on a positive note with first quarter (1 May 2023 and 31 July 2023) sales being 23% higher than the same period in 2022.

Also among the large companies by market capitalisation, International Hotel Investments plc slumped by 4.7% to a six-week low of €0.505 across two trades totalling 5,377 shares. Last Thursday, IHI published its interim financial statements covering the six-month period ended 30 June 2023. Revenues increased by 30.3% to €124.8 million, but operating profit amounted to €3.72 million compared to €4.57 million posted in the corresponding period in 2022. Furthermore, interest expenses increased markedly to €17.3 million compared to €12.8 million in the previous year. Overall, the net loss for the period attributable to IHI’s shareholders amounted to €10.3 million. The Statement of Financial Position as at 30 June 2023, when compared to the corresponding figures as at 31 December 2022 shows that shareholders’ funds contracted by 3.9% (or €23.5 million) to €583.4 million, which translates into a net asset value per share of €0.948

Malta International Airport plc closed unchanged at the €5.70 level after opening higher at the €5.75 level (+0.9%) across two trades totalling 710 shares.

Bank of Valletta plc was today’s most actively traded equity as closed unchanged at the €1.26 level after recovering from an intra-day low of €1.25 (-0.8%) across five deals totalling 42,698 shares.

Also in the banking sector, Lombard Bank Malta plc traded flat at the €0.85 level on two deals totalling 2,840 shares.

AX Real Estate plc remained at the €0.45 level on a single trade of 5,000 shares.

Today, VBL plc published its interim financial statements covering the six-month period ended 30 June 2023. Revenue increased substantially to €1.47 million compared to €0.89 million in the first six months of 2022. VBL also generated investment income of €0.34 million. Overall, VBL posted a net profit for the period of €0.26 million. The statement of financial position as at 30 June 2023, when compared to 30 December 2022, showed that shareholders’ funds remained practically unchanged at €63.9 million, which translates to a net asset value per share of €0.257.

The RF MGS Index decreased by 0.27% to 869.793 points. Last Friday, ECB president Christine Lagarde stated that interest rates in the eurozone will be kept at sufficiently restrictive levels for as long as necessary to lower inflation down to the 2% target. Her comments echoed those of Federal Reserve Chairman Jerome Powell who also spoke about the need to hold interest rates higher for longer in context that not only inflation remains high but the economy is resilient and the labour market remains supportive.



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.