Daily Review 11.09.2024

HSBC Malta dominates trading following shareholding announcement

 

The MSE Equity Price Index dropped by 1.33% to 3,739.302 points as the declines in HSBC, MIA, and Santumas outweighed the gains in six equities. Meanwhile, three other equities closed unchanged as today’s trading activity in local equities amounted to €0.3 million. Download today’s Equity Market Summary.

HSBC Bank Malta plc was today’s most actively traded equity as it plummeted by 18.2% to the €1.35 level across 19 trades amounting to 79,394 shares. Today, HSBC Bank Malta plc announced that its ultimate parent company, HSBC Holdings plc, yesterday evening informed the Board of Directors that it will undertake a strategic review of its indirect 70.03% shareholding in the Bank. The announcement noted that the Bank recognises the important role it plays in Malta’s economy and society and is making this announcement in line with its market obligations, and to support the smooth functioning of the public market. The Bank will make further announcements as and when required.

Also among the large companies by market value, Malta International Airport plc fell by 2.5% to the €5.75 level as 1,810 shares changed hands. Following the close of trading, MIA announced that it welcomed a record 983,182 passengers during August 2024, an increase of 11.9% compared to the corresponding month last year. The movements were 3.3% higher than the previous record of 951,861 registered in July 2024. The seat load factor for August 2024 was 91.2%, 0.2 percentage points less than August 2023, but the highest seat load recorded so far in 2024. Additionally, total seat capacity was 12.1% higher when compared to the corresponding month in 2023. The passenger movements during the first eight months of 2024 amounted to 6.0 million, representing an increase of 16.3% from the 5.16 million movements recorded in the same period last year.

Today’s only other negative performing equity was Santumas Shareholding plc which shed 3.8% to the €1.25 level on trivial volumes.

In contrast, APS Bank plc surged by 11.5% to the €0.58 level on volumes totalling 66,385 shares. During the day, local online news portals stated that APS Bank is in advanced negotiations to buy HSBC Malta.

International Hotel Investments plc surged by 6.6% to the €0.45 level on three trades totalling 50,000 shares.

Tigné Mall plc advanced by 3.2% to the €0.98 level on two deals totalling 14,000 shares. Yesterday evening, Tigné Mall plc announced that it has been informed by the company’s largest shareholder, Marsamxett Properties Ltd (holding 49.68% of the issued share capital of the Company), a wholly owned subsidiary of Hili Ventures Limited, of its intention to launch a conditional voluntary public takeover bid for the acquisition of all the issued share capital of the Company, in accordance with Chapter 11 of the Capital Markets Rules.

Mapfre Middlesea plc climbed 4.8% higher to the €1.32 level across nine deals totalling 10,000 shares.

GO plc moved 4.4% higher to the €2.84 level on volumes of 10,925 shares.

Lombard Bank Malta plc increased by 1.3% to the €0.79 level on lacklustre volumes.

Bank of Valletta plc closed unchanged at the €1.68 level after recovering from an intraday low of €1.66 (-1.2%) across 13 deals amounting to 18,036 shares.

PG plc traded flat at the €1.80 level as 3,500 shares changed hands.

The ordinary shares of RS2 plc closed unchanged at the €0.58 level on two deals totalling 25,000 shares.

Today, AX Real Estate plc announced that the Directors approved a net interim dividend of €0.006 per share, payable on Monday 30 September 2024 to all shareholders as at close of trading on Thursday 12 September 2024. The announcement stated that the Board will continue to prudently manage and review the Company’s position and will also consider the recommendation of a final dividend at the next AGM for the financial year ending 31 October 2024.

Also today, Trident Estates plc published their interim results for the six-month period ended 31 July 2024. Revenue increased to €2.5 million compared to €1.7 million in the same period last year amid the rising occupancy levels at Trident Park. Trident registered a pre-tax profit for the period of €0.91 million compared to €0.14 million in last year’s comparable period. As at 31 July 2024, the net asset value per share stood at €1.463.

The RF MGS Index rose by 0.40% to reach a fresh two-year high of 913.749 points. Today, the German 10-year bund yield hovered touched a year-to-date low of around 2.1%. Furthermore, the US 10-year treasury yield temporarily dipped below 3.61%, the lowest since May 2023, but then spiked back up to 3.69%, following the release of inflation data in the United States. In this respect, headline inflation slowed for the fifth consecutive month, falling to 2.5% in August in line with expectations from 2.9% in July, driven by a larger decline in energy prices. Nonetheless, headline core inflation excluding energy and food prices remained unchanged at 3.2%. On the other hand, month-over-month core inflation grew by 0.3% month-over-month compared to the 0.2% which was anticipated.

 

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.