MSE Equity Price Index rebounds to three-week high

 

The MSE Equity Price Index rose by 0.83% to a three-week high of 3,821.534 points driven by gains in APS, BOV, Computime, HSBC and Mapfre Middlesea. Meanwhile, five other equities closed unchanged as today’s trading activity in local equities amounted to €0.16 million. Download today’s Equity Market Summary.

APS Bank plc surged by 5.9% to the €0.54 level albeit over trivial volumes.

Also in the banking sector, Bank of Valletta plc moved 1.1% higher to the €1.87 level across nine deals totalling 38,092 shares.

BOV’s subsidiary Mapfre Middlesea plc rose by 3.5% to the €1.49 level on a single trade of 5,662 shares.

HSBC Bank Malta plc increased by 1.4% to the €1.44 level over six deals amounting to 34,646 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.

Computime Holdings plc advanced by 2.9% to the €0.50 level on two trades totalling 1,200 shares.

Meanwhile, GO plc traded flat at the €2.66 level as 400 shares changed hands.

Hili Properties plc held the €0.24 level on a single trade of 92,600 shares.

Malta International Airport plc remained unchanged at the €5.95 level on two deals of 917 shares.

PG plc remained at the €1.83 level on two trades totalling 2,000 shares.

VBL plc held the €0.185 level on a single trade of 3,000 shares.

The RF MGS Index declined for the third consecutive session, easing by 0.04% to 908.113 points, as investor sentiment is shifting towards the increased borrowing requirements in both the euro area and the UK, which are currently overshadowing inflationary concerns. In this respect, the ECB is not expected to implement additional cuts to its deposit facility rate during FY2025.

 

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.