Daily Review (15.02.2024)

Malita to offer shares at €0.50 in Rights Issue


The MSE Equity Price Index rose by 0.58% to 3,787.505 points as the gains in BOV, GO, Hili Properties, HSBC, and Malita outweighed the decline in MIA. Meanwhile, APS Bank plc closed unchanged at the €0.545 level on muted activity. Download today’s Equity Market Summary.

Malita Investments plc moved 3.6% higher to the €0.57 level on a single trade of 2,180 shares. Today, Malita announced that it obtained approval for its Application for Authorisation for Admissibility to Listing to the MFSA in relation to the rights issue of up to 65,825,806 new ordinary shares. Malita shareholders as at the close of trading on Friday 16 February 2024 will be eligible to subscribe for four new ordinary shares for every nine ordinary shares held (4-for-9 rights issue), which shall form part of the same class and have equal rights to existing shares. Eligible shareholders will be also entitled to assign all or part of their rights during the offer period. The announcement also noted that the rights issue price was set at €0.50 per new ordinary share. An amount of 20,846,827 excess shares will be made available to institutional investors pursuant to placement agreements with the company. Any remaining excess shares will be then allocated to eligible shareholders who accepted their proportionate entitlement in full and applied for excess shares, and to the general public.

Also in the property sector, Hili Properties plc rebounded by 16% to recapture the €0.21 level, albeit on one deal of 500 shares.

GO plc advanced by 1.3% to the €3.12 level as 500 shares changed hands.

Also among large companies by market value, Bank of Valletta plc climbed by 1.5% to the €1.32 level across two deals totalling 7,500 shares.

HSBC Bank Malta plc rose by 0.8% to the €1.30 level on three trades totalling 18,800 shares.

Meanwhile, Malta International Airport plc reversed yesterday’s gains as it shed 1.7% to the €5.65 level on one trade of 2,500 shares. On Monday, MIA stated that passenger movements reached a new record for January and amounted to 465,482 passenger movements, which is 11.3% higher than the previous record registered in January 2020, prior to the pandemic. Passenger movements in January 2024 were also 22.7% higher than the movements registered in the same month last year. Meanwhile, the seat load factor for January 2024 stood at 74% compared to almost 77% in January 2023 and 71% in January 2020. However, the airport operator noted that seat capacity increased by 27.4% compared to the same month last year.

The RF MGS Index increased for the fourth successive session as it gained 0.42% to a one-week high of 892.446 points. Today, ECB President Christine Lagarde stated that the Euro Area economic activity shows signs of growth in 2024 after remaining flat during the last quarter of 2023. Meanwhile, she stated that according to preliminary estimates, inflation decreased to 2.8% during January, noting that core inflation is falling despite challenges in the services sector. Additionally, Ms Lagarde identified wage growth as an important driver of inflation dynamics in the coming quarters. Strong wage pressures are expected during 2024, the extent of which will be influenced by upcoming wage negotiations. Regarding interest rates, Lagarde commented that the ECB will continue to use a data-driven approach to determine the appropriate interest rate level to sustainably reach the ECB’s 2% inflation target. Elsewhere, the UK entered a technical recession as its GDP declined for the second consecutive quarter during the last quarter of 2023. Despite that the recession was anticipated, the GDP fell by 0.2 percentage points more than expected. Similarly, Japan also fell into recession as its economy unexpectedly contracted during the last quarter of last year, missing out on a 0.3% growth projection