Daily Market Highlights (31.05.2022)

HSBC reports sharp drop in profitability in Q1 2022


The MSE Equity Price Index extended yesterday’s decline as it dropped by a further 0.14% to 3,699.669 points. The declines in HSBC, BMIT and Mapfre Middlesea outweighed the gains in MIA and the ordinary shares of RS2. On the other hand, BOV and Tigné Mall closed unchanged as overall trading activity in equities eased to €0.08 million from €0.28 million yesterday. Download today’s Equity Market Summary.

HSBC Bank Malta plc slid by 2.5% to the €0.77 level after partly recovering from an 18-month low of €0.75 (-3.8%). A total of 63,239 shares traded. Today, HSBC published a Quarterly Update showing that in Q1 2022 it generated a profit before tax of €4.8 million compared to €9.9 million in Q1 2021. The drop in profitability was largely driven by adverse market movements which significantly impacted the contribution from the insurance subsidiary. Furthermore, net interest income also decreased reflecting a marginal contraction in the size of the bank’s loan book, tighter margins, as well as a notable increase in customer deposits. On the other hand, HSBC reported improvement in net fee income driven by increased activity across cards, payments, and foreign exchange. In addition, the Bank continued to implement effective cost management discipline as operating expenses dropped by €1.1 million. In terms of financial position, HSBC explained that its liquidity position remained strong and regulatory capital ratios continued to exceed requirements.

A single deal of 12,840 shares forced the share price of BMIT Technologies plc to move 1.7% lower to the €0.476 level.

Mapfre Middlesea plc retracted by 1.5% to the €1.93 level albeit on trivial volumes.

Meanwhile, Malta International Airport plc added 0.8% to recaptured the €6.00 level across 175 shares.

The ordinary shares of RS2 Software plc closed the session 0.6% higher at the €1.64 level after opening at a low of €1.56 (-4.3%). A total of 6,950 shares traded.

Bank of Valletta plc stayed at the €0.89 level across five deals totalling 19,635 shares.

Tigné Mall plc held on to the €0.70 level on low volumes.

The RF MGS Index trended in negative territory for the third consecutive day as is eased by a further 0.14% to a fresh multi-year low of 979.555 points. On the economic front, inflation in the euro area accelerated by more than expected to a new record of 8.1% reflecting the impact of high energy prices as well as upward pressure on food supplies and industrial products.


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.