Main Street drops to all-time low following weak guidance

 

The MSE Equity Price Index fell by 0.07% to 3,785.860 points as the declines in APS, BMIT, Malita, Main Street Complex, M&Z and the ordinary shares of RS2 outweighed the gains in BOV and AX Real Estate. Meanwhile, three other equities closed unchanged as today’s trading activity in local equities amounted to €0.1 million. Download today’s Equity Market Summary.

Main Street Complex plc slumped by 9.0% to an all-time low of €0.264 across four deals amounting to 14,584 shares. Yesterday, Main Street announced that the company continued to operate profitably throughout 2024, maintaining a robust financial position with no external borrowing apart from normal trade credit. However, the Board has observed that trading activity has generally subsided, most likely impacted by the emergence of new malls throughout the island, leading to a reduction in footfall compared with the same period last year. The company explained that this recent trend has affected sales activity and investment appetite among retail operators, including a number of the company’s tenants, therefore negatively impacting the company’s profitability. The Board noted that a small number of concessions expired this year and are yet to be replaced.  Efforts to line up potential prospective tenants in case of non-renewals have been met with moderate interest. Furthermore, most concession agreements are due for renewal at the end of 2025 and discussions with existing as well as prospective tenants are underway. While a number of existing tenants have shown interest in renewing concession agreements, others remain undecided in view of concerns about the aforesaid rising competition in the retail sector. In this respect, the Board has embarked on an exercise to explore alternative strategies aimed at maximising the return on the company’s investment.

M&Z plc plummeted by 8.3% to a five-month low of €0.55 on one deal of 30,000 shares.

The ordinary shares of RS2 plc declined by 2.0% to the €0.49 level on a single trade of 1,000 shares.

APS Bank plc shed 0.9% to the €0.565 level after partially recovering from an intraday low of €0.545 (-4.4%) across six trades amounting to 18,700 shares.

BMIT Technologies plc moved 0.6% lower to the €0.348 level on a single deal of 3,000 shares.

Malita Investments plc fell by 5.7% to the €0.50 level across four trades totalling 8,997 shares.

On the other hand, AX Real Estate plc surged by 12.4% to a one-month high of €0.418 on three deals totalling 2,715 shares.

Bank of Valletta plc moved 0.6% higher to the €1.71 over seven trades amounting to 16,145 shares.

Meanwhile, MaltaPost plc traded flat at the €0.48 level as 4,000 shares changed hands.

GO plc held the €2.70 level on two trades totalling 700 shares.

HSBC Bank Malta plc closed unchanged at the €1.44 level over five deals amounting to 17,744 shares.

The RF MGS Index snapped an eighth day winning streak as it declined by 0.1% to 927.399 points. Today’s economic data showed that contraction in the euro area private sector during November was a smaller than anticipated. ECB President Christine Lagarde commented that despite the weak growth anticipated for the short term, there is room for recovery going forward driven by increased investment and consumer spending on the back of rising real income.

 

This report contains only public information and is not to be construed as investment advice or an offer to buy or sell 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.