Daily Review 15.05.2024

MIA to consider further optimisation of shareholder value


The MSE Equity Price Index fell by 0.25% to 3,745.669 points as the decline in BOV outweighed the gains in MIA and BMIT. Meanwhile, three other equities closed unchanged as today’s trading activity was muted at about €30,000. Download today’s Equity Market Summary.

Malta International Airport plc rose by 0.9% the €5.65 level as 2,015 shares changed hands. Today, MIA held its Annual General Meeting which approved all resolutions on the agenda. The company also published a summary of proceedings highlighting key matters that were discussed. In particular, the Chairman iterated MIA’s commitment to delivering positive returns to its investors over the long term, as the company works towards achieving its targets in 2024 of welcoming 8.45 million passengers and achieving a net profit of €44 million. The Chief Executive Officer provided an overview of the company’s record traffic and financial performance in 2023 but acknowledged the disparity between MIA’s strong financial performance and share price recovery. In this respect, the CEO declared that the Board of Directors will be making considerations regarding the optimisation of shareholder value over the coming year.

BMIT Technologies plc rebounded by 11.8% to the €0.38 level on trivial volumes.

Bank of Valletta plc shed 2.8% to the €1.38 level across three trades totalling 10,197 shares.

A single trade of 1,089 shares left the share price of APS Bank plc unchanged at the €0.55 level.

Malita Investments plc held the €0.49 level on a single deal of 5,332 shares.

MIDI plc closed unchanged at the €0.26 level after recovering from an intraday low of €0.234 (-10%) as 5,000 shares changed hands. The Directors of MIDI are recommending the payment of a net dividend of €0.009 per share to shareholders as at the close of trading on 24 May 2024, subject to shareholders’ approval during the upcoming Annual General Meeting scheduled to be held on 27 June 2024.

Today, GO plc published an updated financial analysis summary highlighting the expected performance of the Group’s telecom assets in Malta for 2024. Revenues are expected to decrease by 3.9% to €133.9 million principally due to the non-reoccurrence of one-off income generated from a business-to-business contract in 2023.  Nonetheless, GO expects growth in core revenues through increased subscribers and higher average revenue per user. EBITDA is anticipated to drop by 10.7% to €53.9 million reflecting an increase in direct costs related to the access of the mobile network towers. As a result, the EBITDA margin is forecasted to ease to 40.2% compared to 43.3% in 2023. Net finance costs are predicted to fall by 18.6% to €3.75 million as GO intends to pay back some of its bank borrowings from the proceeds of the sale of its mobile network passive infrastructure.

The RF MGS Index remained relatively unchanged at 890.270 points. Data released today showed that the eurozone economy grew by 0.3% during the first quarter of the year. The European Commission also published updated economic forecasts which showed that economic growth in the Euro Area for 2024 and 2025 is now expected at 0.8% and 1.4% respectively, which are lower than previous estimates of 0.9% and 1.7%. Furthermore, inflation expectations for the Euro Area for the upcoming two years were also revised lower to 2.5% and 2.1% from previous projections of 3.0% and 2.5%. Meanwhile in the US, inflation fell in line with expectations to 3.4% in April compared to a six-month high of 3.5% in March. Moreover, core inflation also eased to 3.6% from 3.8% in March.

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.