Daily Review 06.06.2024

ECB reduces its interest rates by 25 basis points


The RF MGS Index increased by 0.25% to a two-week high of 892.893 points. Today, the ECB reduced its key interest rates by 25 basis points, with the deposit facility rate moving to 3.75% after being at an all-time high of 4.00% since September 2023. While the rate cut was in line with expectations, projections for headline inflation for the upcoming two years were increased by 0.2 percentage points to 2.5% in 2024 and 2.2% in 2025 but were left unchanged at 1.9% in 2026. Likewise, core inflation was revised upward by 0.2 percentage points to 2.8% in 2024, and by 0.1 percentage point to 2.2% in 2025. Meanwhile, the real GDP growth for the eurozone was increased by 0.3 percentage points to 0.9% for 2024. Economic activity in the single currency bloc is expected to grow by 1.4% and 1.6% respectively in the following two years. In its publications, the central bank did not commit to any future changes to rates and reiterated that any decisions will be based on the updated economic data at the time.

The MSE Equity Price Index remained relatively unchanged at 3,702.533 points as the gain in BOV offset the decline in MIA, which were the only two equities which traded today. Download today’s Equity Market Summary.

Bank of Valletta plc gained 0.7% to the €1.41 level after recovering from an intraday low of €1.39 (-0.7%) across five trades amounting to 8,500 shares.

Malta International Airport plc shed 0.9% to the €5.65 level across ten deals amounting to 4,300 shares.

Today, VBL plc announced that the Directors are recommending the payment of a final net dividend of €0.000803 per share (FY 2022: €0.000726) to all shareholders as at the close of trading on 24 June 2024, subject to approval at the upcoming Annual General Meeting scheduled for 26 July 2024.