HSBC Bank Malta dominates trading activity

The MSE Equity Price Index rose by 0.51% to a three-week high of 3,819.472 points as the gains in BOV, HSBC, IHI, Mapfre Middlesea and the ordinary shares of RS2 outweighed the declines in APS and Convenience. Meanwhile, three other equities closed unchanged as today’s trading activity amounted to €0.27 million. Download today’s Equity Market Summary.

HSBC Bank Malta plc was today’s most actively traded equity, accounting for almost 70% of today’s activity, as it rose by 0.7% to an almost one-month high of €1.43 across sixteen deals amounting to 128,754 shares. Last Tuesday, HSBC Bank Malta plc announced that it had signed an acknowledgement of a put option agreement between its parent company HSBC Continental Europe (‘HBCE’) and CrediaBank S.A., whereby CrediaBank will be paying €0.793 per share (amounting to a total consideration of €200 million) for HBCE’s 70.03% shareholding in HSBC Malta. The potential transaction is subject to an information and consultation process with HBCE’s employee works councils in France as well as approval by the relevant regulators. HSBC’s management and listing on the Malta Stock Exchange are anticipated to be maintained and the potential transaction is expected to be completed by the end of 2026. Following completion of the potential transaction, CrediaBank will become the majority shareholder of HSBC Malta and will launch a mandatory takeover offer for the remaining publicly-held shares. In this respect, minority shareholders will be entitled to sell their shares at a price of €1.44 per share which equates to a price to book multiple of 0.85x based on the net asset value of €1.708 per share as at June 2025. Until the completion of the transaction, HSBC Bank Malta plc intends to distribute dividends in 2026 on a quarterly basis, with a payout ratio of 60% of consolidated net profit, subject to Board and Regulatory approval. As part of the Potential Transaction, CrediaBank would also acquire the rights and liabilities of certain Tier 2 and MREL loans made between HBCE (or another member of the HSBC Group) and the Bank.

International Hotel Investments plc advanced by 2.2% to the €0.46 level on trades totalling 23,450 shares.

The ordinary shares of RS2 plc surged by 12.9% to the €0.35 level over six deals amounting to 17,000 shares.

Bank of Valletta plc moved 0.5% higher to the €1.89 level over nine trades totalling 11,405 shares.

Mapfre Middlesea plc increased by 1.4% to the €1.45 level over five deals amounting to 1,891 shares.

On the other hand, APS Bank plc shed 1.9% to the €0.51 level over three trades totalling 11,400 shares.

The Convenience Shop (Holding) plc decreased by 1.3% to the €0.79 level across three deals amounting to 7,800 shares.

Meanwhile, Hili Properties plc traded flat at the €0.24 level as 40,000 shares changed hands.

PG plc held the €1.83 level over three deals totalling 4,770 shares.

Malta International Airport plc closed unchanged at the €5.95 level on two trades amounting to 2,530 shares.

The RF MGS Index rose by 0.1% to 911.623 points. During its monetary policy meeting yesterday, the US Federal Reserve lowered the federal funds rate by 25 basis points to a range of 4.00%–4.25%, marking the first cut since December. Moreover, the Federal Reserve signalled the possibility of two additional rate reductions before year-end. Following the meeting the Chair, Jerome Powell noted that downside risks to employment have increased, citing slower job gains and a slight uptick in unemployment. Meanwhile, the Fed’s inflation forecast for year-end was maintained at 3.1%, whilst the GDP forecast was revised upward to 1.6% from 1.4% in June. Additionally, the unemployment projection was left unchanged at 4.5% compared to the current rate of 4.3%.

Elsewhere, in the UK, the Bank of England kept its base interest rate unchanged at 4.0%. The Bank highlighted that the inflation rate remained well above the target rate of 2% despite disinflationary progress driven by reduced wage growth. Following the meeting the Bank of England flagged upward risks to medium-term inflation while acknowledging subdued economic activity and a softening labour market.

 

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.