Daily Review 03.05.2024

MSE Equity Price Index rises to a 7-week high


The MSE Equity Price Index posted a three-day winning streak as it increased by 0.48% to a seven-week high of 3,796.346 points. The gains in five equities outweighed the declines in the ordinary shares of RS2 and Trident. Meanwhile, six other equities closed unchanged at today’s trading equity in local equities amounted to €0.27 million. Download today’s Equity Market Summary.

MIDI plc surged by 11.3% to a three-week high of €0.256 across six trades totalling 57,800 shares. The Directors of MIDI are recommending the payment of a net dividend of €0.009 per share to shareholders as at the close of trading on 24 May 2024, subject to shareholders’ approval during the upcoming Annual General Meeting scheduled to be held on 27 June 2024. The dividend is expected to be paid on 19 July 2024.

Also in the property sector, Malta Properties Company plc rose by 18.1% to a three-month high of €0.378 albeit on muted activity.

AX Real Estate plc gained 0.4% to the €0.496 level on trivial volumes.

International Hotel Investments plc climbed by 4.3% to an almost two-month high of €0.49 across three trades amounting to 14,350 shares. On Tuesday, IHI published its 2023 results. Revenue surged by 20.8% to a record €287.8 million while EBITDA increased by 16.7% to €60.3 million. The operating profit climbed to €36.5 million compared to €14.3 million in the previous year. However, net finance costs excluding exchange rate differences rose by 35.2% to €37.5 million. Overall, IHI reported a pre-tax loss of €4.12 million and the net loss for the year attributable to shareholders amounted to €10.4 million compared to the loss of €5.44 million posted in 2022. Shareholders’ funds grew by 1.1% to €613.3 million which translates into a net asset value per share of €0.9961.

Mapfre Middlesea plc moved 2.2% higher to the €1.42 level on two deals totalling 1,046 shares.

On the other hand, the ordinary shares of RS2 plc shed 1.9% to the €1.05 level as 1,047 shares changed hands.

Tridents Estates plc moved 1.5% lower to the €1.30 level after partially recovering from an intraday low of €1.20 (-9.1%) across two deals totalling 950 shares.

Bank of Valletta plc closed unchanged at the €1.40 level after recovering from an intraday low of €1.36 (-2.9%) across nine trades totalling 158,850 shares. BOV is expected to announce a quarterly update on Monday 6 May 2024.

Also in the banking sector, HSBC Bank Malta plc closed unchanged at the €1.42 level on volumes totalling 10,158 shares. On Tuesday, HSBC published a quarterly update providing information about its performance in Q1 2024 when compared to the same period in 2023. Total revenue increased by 29% (or €14.6 million) as the Bank was able to earn higher interest on its excess liquidity. Furthermore, the Group registered higher business volumes, which increased net fee income, foreign exchange, and insurance income. The healthier credit quality of the bank’s loan books resulted in a release of expected credit losses of €1.8 million, which however was less than the release of €3.7 million in Q1 2023. HSBC noted that costs were maintained at the same level despite the impacts of inflation. The Bank explained customer loans remained broadly in line with the levels reported as at the end of 2023, but customer deposits decreased marginally due to a drop in operational corporate deposits. Overall, HSBC reported a profit before tax of €39.3 million compared to €26.5 million reported in Q1 2023 and €33.1 million in Q4 2023.

Similarly, Lombard Bank Malta plc held the €0.79 level on a single deal of 1,000 shares. The Directors of Lombard are recommending a final net dividend per share of €0.0106 to all shareholders as at the close of trading on 24 May 2024, subject to regulatory approval as well as shareholders’ approval during the upcoming Annual General Meeting scheduled to be held on 27 June 2024.

Main Street Complex plc (14,500 shares), Malta International Airport plc (175 shares) and GO plc (900 shares) held the €0.33, €5.70 and €3.02 levels respectively. The Directors of Main Street Complex are recommending the payment of a final net dividend of €0.011 per share to shareholders as at close of trading on 29 May 2024, subject to shareholders’ approval during the upcoming Annual General Meeting scheduled to be held on 28 May 2024.

The RF MGS Index reversed yesterday’s decline as it rose by 0.07% to 890.163 points. During a speech today, ECB Governing Council member Yannis Stournaras stated that the Central Bank will probably lower interest rates three times by the end of this year. Furthermore, in the near term, Mr Stournaras expects inflation to increase by more than forecasted due to stronger than anticipated economic growth. Nonetheless, he does not believe that the medium-term interest rate trajectory will be affected. Meanwhile in the US, data released today showed that only 175,000 jobs were added in April, the lowest level in six months and well below expectations. Furthermore, the unemployment rate during April unexpectedly increased to 3.9%. Additionally, the year-over-year increase in wages during April, was also lower than projected at 3.9%.


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.