Daily Market Highlights (28.10.2022)

Sharp increase in Malta Government Stock prices


The RF MGS Index registered the sharpest daily uplift in seven months as it surged by 1.23% to 891.947 points. Sovereign bond yields across the eurozone fell amid indications that the ECB may raise rates less aggressively in the coming months, following yesterday’s second consecutive 75 basis point increase. Meanwhile in the US, the economy grew by an annualised rate of 2.6% in the third quarter following a decline in the first half of the year. However, the housing market continued to suffer due to high mortgage rates.

This morning the Treasury Department announced that it received a total of 10,458 applications for the two new Malta Government Stocks for a value exceeding €293 million (nominal). The Treasury exercised the over-allotment option and all applications were accepted in full. Subscriptions from retail investors for the 3.40% MGS 2027 (VI) at an offer price of 101.25% amounted to €52.8 million (nominal), while applications for the 4.00% MGS 2032 (VII) at an offer price of 100.00% amounted to €240.3 million (nominal). The two new MGS’s were admitted to listing on the Official List of the Malta Stock Exchange today and trading is expected to commence next Monday 31 October 2022. Interest on the new MGS’s started to accrue as from 17 October 2022.

Meanwhile, the MSE Equity Price Index advanced by 0.92% to 3,657.082 points as the gains in BOV, Malita, Farsons and Trident outweighed the declines in GO and MIA. Meanwhile, APS and Lombard closed unchanged. Download today’s Equity Market Summary.

Today, Malta Properties Company plc published a Quarterly Update covering the nine-month period ended 30 September 2022 compared to the same period in 2021. Revenue surged by 11.3% to €3.04 million (Jan-Sep 2021: €2.73 million) reflecting the initial income from the Zejtun property and contributions from the MIB Buidling in Ta’ Xbiex which was acquired earlier this year. The Zejtun property is expected to be fully handed over to its tenant GO plc by the end of 2022. MPC improved its operating profit by 19.3% to €2.21 million (Jan-Sep 2021: €1.85 million), which in turn translates into a higher EBIT margin of 72.6% compared to 67.7% in the same period last year. However, in view of lower fair value gains as well as deferred tax related to the acquisition of the Ta’ Xbiex property, MPC registered a net profit for the period of €1.28 million, which is lower than the €2.56 million figure of last year. The equity remained inactive today.

Malita Investments plc moved 4.1% higher to the €0.76 level on one deal of 9,590 shares.

Also in the property sector, Trident Estates plc gained 1.4% to the €1.48 level on a single trade of 4,800 shares.

Simonds Farsons Cisk plc was today’s best performing and most actively traded equity as it surged 5.3% to the €7.95 level on volumes totalling 5,778 shares.

Bank of Valletta plc increased by 1.1% to the €0.90 level on four trades totalling 15,000 shares.

Also in the retail banking sector, Lombard Bank Malta plc traded flat at the €1.95 level across 3,575 shares. Lombard is holding an Extraordinary General Meeting on Thursday 10 November ahead of a new equity raise of circa €50 million.

APS Bank plc closed unchanged at the €0.625 level after opening lower at €0.62 (-0.8%). A total of 1,200 shares changed hands. Yesterday, APS published a quarterly update showing growth in net interest income (+15% to €46.7 million) but incurred a loss of €8.41 million in relation to the performance of APS Funds SICAV. Overall, the APS Group reported a net profit of €0.9 million for the nine-month period. However, on a standalone basis, the Bank registered a net profit of €14.2 million (which translates into an annualised return on equity of circa 8.4%) which is 37% higher than the net profit of €10.4 recorded in the corresponding period in 2021.

Elsewhere, GO plc eased by 0.7% to the €2.96 level on three deals totalling 10,300 shares.

Malta International Airport plc shed 0.9% to the €5.80 level on low volumes.


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.