MSE Equity Price Index falls to a five-month low

 

The MSE Equity Price Index fell by 1.9% to a five-week low of 3,708.531 points as the declines in nine equities outweighed the gains in Malta Properties. Meanwhile, two other equities close unchanged as today’s trading activity across local equities was muted at around €65,000. Download today’s Equity Market Summary.

GO plc shed 2.2% to a multi-year low of €2.64 level across two trades amounting to 2,329 shares.

HSBC Bank Malta plc slumped by 7.6% to a 10-month low of €1.33 over three deals amounting to 3,200 shares.

Also in the banking sector, Bank of Valletta plc moved 0.6% lower to the €1.71 level across three trades totalling 7,150 shares.

Simonds Farsons Cisk plc fell by 3.0% to a two-month low of €6.50 over six deals amounting to 1,952 shares.

Also among large companies by market value, Malta International Airport plc declined by 3.4% to a three-week low of €5.70 on two deals totalling 650 shares.

BMIT Technologies plc decreased by 0.6% to the €0.346 level, after recovering from an intraday low of €0.324 (-6.9%).

Trident Estates plc plummeted by 10.4% to a two-week low of €1.03 on a single trade of 1,091 shares.

Also in the property sector, Malita Investments plc moved 2.0% lower to the €0.50 level as 8,000 shares changed hands.

PG plc decreased by 2.7% to a three-month low of €1.81 over six deals totalling 5,433 shares. Today PG plc published its interim results for the six-year period ended 31 October 2024. Revenue increased by 0.5% to €96.7 million as the increase in turnover from the franchise segment offset the declines in supermarket revenues. Nonetheless, due to pricing pressures, the group’s gross profit margin decreased to 13.0% from 13.9% in the corresponding period last year. Consequently, profit before tax fell by about 8% to €9.3 million (H1 2023/24: €10.1 million). Net profit for the period was €6.9 million which is 3.6% less than the €7.2 million generated last year.

On the other hand, Malta Properties Company plc rose by 4.7% to the €0.36 level on one trade of 6,000 shares.

Meanwhile, AX Real Estate plc traded flat at the €0.418 level across five trades totalling 5,816 shares.

A single trade of 1,771 shares left the share price of Lombard Bank Malta plc unchanged at the €0.79 level.

The RF MGS Index fell by 0.29% to a one-month low of 917.531 points. Yesterday evening, the Federal Reserve opted to reduce the federal funds rate for the third consecutive meeting, cutting it by a further 25 basis points to a range between 4.25%-4.5% as anticipated. Nonetheless, policy makers reduced their expectations of the magnitude of rate cuts in 2025 to 50 basis points compared to the 100 basis points in the previous projections. In this respect, following the meeting, US Federal Reserve Chairman Jerome Powell commented that interest rates were significantly less restrictive and closer to neutral, and that the Fed is going to be cautious about effecting further rate cuts. Furthermore, the Fed increased its inflation outlook for 2025 to 2.5% from 2.1% as well as its growth forecasts to 2.5% from 2.0% last September. Following the meeting the US 10-year treasury yield rose to an almost 7-month high over 4.5%. Elsewhere in the UK, the Bank of England today left its benchmark rate unchanged at 4.75% , since current inflation numbers and expectations for future figures had risen. Nonetheless, the decision was not unanimous as some Bank of England policymakers preferred to reduce rates by 25 basis points on the back of sluggish demand and a weakening 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.