MSE Equity Price Index falls to a two-week low

The MSE Equity Price Index fell by 0.95% to a two-week low of 3,853.459 points as the declines in BOV, GO, HSBC, and MIA outweighed the gains in Lombard and FIMBank. Meanwhile, five other equities closed unchanged as today’s trading activity in local equities amounted to €0.19 million. Download today’s Equity Market Summary.

Bank of Valletta plc dropped by 2.6% to the €1.90 level across twenty deals amounting to 56,640 shares. BOV partially recovered from an intraday low of €1.86 (-4.8%).

Also in the banking sector, HSBC Bank Malta plc shed 2.0% to the €1.49 level over five trades totalling 10,310 shares as the equity started trading ex dividend. HSBC shareholders as at the close of yesterday’s trading will receive a net interim dividend of €0.065 per share on 23 September 2025.

GO plc eased by 0.7% to the €2.80 level on two deals amounting to 3,546 shares.

Malta International Airport plc moved 0.8% lower to the €5.90 level across six trades amounting to 2,397 shares.

In contrast, FIMBank plc closed the session 6.4% higher at USD0.149 on two deals totalling 22,000 shares, albeit most of the trading took place at the previous closing price of USD0.14.

Lombard Bank Malta plc increased by 1.4% to the €0.71 level over three trades amounting to 23,042 shares.

Meanwhile, APS Bank plc traded flat at the €0.52 level as 3,619 shares changed hands. APS shareholders as at close of trading on 28 August 2025 will receive a net interim a dividend of €0.00472 per share on 19 September 2025, subject to regulatory approval.

AX Real Estate plc held the €0.34 level on a single deal of 2,000 shares.

PG plc remained unchanged at the €1.85 level on one trade of 3,000 shares.

Hili Properties plc closed unchanged at the €0.24 level over two deals totalling 76,000 shares.

BMIT Technologies plc held the €0.30 level over trivial volumes.

The RF MGS Index rose by 0.05% to 907.514 points. An announcement of a potential summit between Russia and Ukraine raised hopes of the resolution of the conflict within the region. Meanwhile in the US, data released today highlighted the resilience of the US economy as the seasonally adjusted annualised number of new residential buildings during July unexpectedly increased to a five-month high contrasting with market expectations of a decline.

Today, the Central Bank of Malta published updated economic projections in which Malta’s economic growth forecast for 2025 was reduced to 3.9% from the previous projection of 4.0%. GDP growth is anticipated to continue to normalize gradually over the next two years reaching 3.3% by 2027.

Meanwhile, inflation forecasts for 2025 were left unchanged at 2.4%. Inflation is expected to settle at the ECB’s target of 2.0% in 2027. The decrease in inflation together with the recently enacted widening of the income tax bands, is expected to boost real disposable income growth, which should remain robust to support private consumption. The CBM noted that although the full visibility on tariff agreements with the US were not available prior to the publication of the forecasts, the agreed tariff rate is higher than that incorporated in the previous projections. Hence, the effective tariff rate for Malta is estimated at 6.0%, up from 3.9% included in the June projection round. Similar to the June 2025 projection round, this scenario excludes EU retaliatory measures.

Revised estimates show that the labour market will be tighter as the unemployment rate was revised lower to 2.8% for 2025 and 2.7% for the following two years, in contrast to previous forecasts of 3.0% for the three years to 2027.

General government debt is expected to remain below 50% of GDP until 2027, while the general budget balance is set to record a deficit of 3.7% in 2025 and ease to a deficit of 2.6% by 2027

 

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.