Local bank equities rebound from yesterday’s drop

The MSE Equity Price Index advanced by 0.78% to 3,804.632 points as the gains in APS, BOV, HSBC, and Malita outweighed the decline in IHI. Meanwhile, three other equities closed unchanged. Download today’s Equity Market Summary.

HSBC Bank Malta plc climbed 2.9% to a one-month high of €1.44 across ten trades totalling 17,629 shares.

Likewise, APS Bank plc advanced by 2.5% to the €0.62 level across six deals totalling 14,373 shares.

Bank of Valletta plc moved 1.7% higher to the €1.78 level across 13 trades totalling 64,549 shares having a market value of over €0.11 million and representing 65% of today’s total trading value in local equities.

Today’s other positive performing equity was Malta Investments plc as it climbed 2% to the €0.50 level on muted activity.

Malta International Airport plc closed unchanged at the €6.15 level across volumes totalling 4,050 shares.

M&Z plc (3,891 shares) and MaltaPost plc (400 shares) also closed unchanged at the €0.54 and €0.46 levels respectively.

International Hotel Investments plc shed 1.7% to the €0.45 level, albeit on trivial volumes. Today, IHI announced that it has filed an application with the Malta Financial Services Authority requesting admissibility to listing of €35 million 5.30% unsecured bonds maturing in 2035. The company explained that the new bonds will part-finance the redemption of the €45 million 5.75% unsecured bonds maturing on 13 May 2025. IHI stated that the net reduction in bond exposure reflects the request of the Board of Directors to reduce overall debt whilst maintaining focus on increasing profit contributions from underlying businesses, including the recently launched hotel operations in New York and Brussels and others which are expected to start operating in the next 12 months in Bucharest, Rome, and the Gulf. Subject to regulatory approval, IHI will be giving preference to holders of the maturing bonds as at close of trading on 17 February 2025 to subscribe to the new bonds by surrendering the corresponding nominal value of bonds held. The maturing bonds will cease trading on the Malta Stock Exchange on 17 February 2025 until further notice. Further details regarding the new bond issue will be published once regulatory approval is obtained.

The RF MGS Index fell for the second consecutive session as it dropped by a further 0.36% to 914.119 points. Consequently, the Index now stands in negative territory on a year-to-date basis, reflecting the increase in yields particularly towards the longer end of the yield curve. Today, Austrian central bank governor Robert Holzmann warned that the global tariffs being proposed and enacted by US President Donald Trump are increasing inflationary risks. He explained that while the euro area was experiencing a continued reduction in inflation, the tariff threats are reversing this trend and inflation may remain elevated. Meanwhile in the US, Federal Reserve Chair Jerome Powell reiterated that the Fed is not considering any changes to its interest rates, but any later changes to the federal funds rate are most likely to be reductions since the current levels are still restrictive. Data published later today showed that the US inflation rate increased to 3% in January, above expectations.

 

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.