Daily Review (15.01.2023)

RS2 nudges higher following major processing agreement


The MSE Equity Price Index slumped by 2.02% to 3,759.117 points mainly driven by the declines in IHI. BOV, MIA, and Convenience also moved lower while GO and the ordinary shares of RS2 moved in positive territory. Meanwhile, four other equities closed unchanged as today’s total trading activity in local equities amounted to €0.12 million. Download today’s Equity Market Summary.

The ordinary shares of RS2 plc climbed by 1.7% to a one-week high of €1.18 across three trades totalling 5,636 shares. Last Friday, RS2 announced that it signed a major processing outsourcing agreement with one of the largest acquirers in the US. The Group will provide merchant payment processing technologies and services for a 6-year term with the option to renew. RS2 noted that this latest development is a milestone achievement in line with its growth strategy. RS2 also added that further details will be announced in due course.

GO plc was the most actively traded equity for the second consecutive session as it advanced by 1.9% to the €3.26 level across five deals totalling 22,525 shares. GO shareholders as at the close of trading tomorrow will receive an interim dividend of €0.15 per share on Thursday 1 February 2024.

In contrast, International Hotel Investments plc plummeted by 19.6% to the €0.434 level, albeit on a single deal of 3,258 shares.

Also among large companies by market cap, Bank of Valletta plc shed 2.9% to the €1.32 level across five trades totalling 4,033 shares.

Malta International Airport plc moved 1.8% lower to the €5.55 level over four trades totalling 1,068 shares. Last Thursday, MIA published the December 2023 traffic results and provided key performance targets for 2024. Passenger movements at MIA in 2023 reached a record of just over 7.8 million, which is 6.7% higher than the previous record of 7.31 million passenger movements registered in 2019. For 2024, MIA expects passenger movements of 8 million, revenue of €126 million, EBITDA of €79 million and a net profit of €42 million, which are all marginally higher than the forecasted figures for 2023. Meanwhile, MIA explained that capital investments in 2024 will amount to €45 million.

The Convenience Shop (Holding) plc slumped by 13.8% to an all-time low of €0.905, albeit over trivial volumes.

A single trade of 28,710 shares left the share price of Tigné Mall plc unchanged at the €0.82 level.

PG plc remained at the €2.10 level on one deal of 2,083 shares.

HSBC Bank Malta plc and Malta Properties Company plc held the €1.25 and €0.356 levels respectively on muted activity.

The RF MGS Index snapped a three-day winning streak as it fell by 0.20% to 896.187 points. Eurozone sovereign bond yields returned to an upward trajectory with the German 10-year bund yield resurfacing above the 2.20% level. Despite that inflation appears to be cooling faster than expected, policymakers remain wary of potential wage pressures during the first half of the year. In fact, speaking at the World Economic Forum today, Austrian ECB council member Robert Holzmann stated that the ECB will not reduce rates until there is certainty that inflation is going to decline to target levels. In this respect, he implied the possibility that there will be no rate cuts during 2024.


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.