BOV climbs to six-year high

The MSE Equity Price Index surged by 1.1% to a two-month high of 3,762.701 points as the gains in BOV and Lombard outweighed declines in APS, Hili Properties, PG, MIA and GO. Meanwhile, three other equities closed unchanged as today’s total trading activity in local equities totalled €0.44 million. Download today’s Equity Market Summary.

Bank of Valletta plc surged by 6.8% higher to a six-year high of €1.58 across twenty-eight trades totalling 224,470 shares. Today BOV published its interim financial results for the six-month period ended 30 June 2024. Notably, BOV reported a record profit before tax of €148 million about 41% higher than the previous record of €105 million reported last year. Profitability was driven by a 21% surge in net interest income to €194 million as a result of large growth in gross interest income, accompanied by only a minimal increase in interest expenses. Growth in gross interest income reflected an expansion in both customer lending and proprietary investment portfolios as well as improved deposit rates on cash balances.

The Board of Directors announced its intention to establish a Euro Medium Term Note Programme of up to €250 million. The notes will be issued to the general public and an application will be made for admission to the official list of the Malta Stock Exchange. The proceeds will be used to enhance the Bank’s capital base in satisfaction of its Minimum Requirement for own funds and Eligible Liabilities (MREL) to support the Bank’s growth. Further information will be made available in a Prospectus and the relevant Final Terms, which will be made available once regulatory approval is obtained

Also in the banking sector, Lombard Bank Malta plc gained 2.7% to the €0.77 level on a single trade of 1,958 shares.

On the other hand, APS Bank plc dropped by 2.0% to a one-month low of €0.50 over thirteen deals amounting to 73,311 shares.

Malta International Airport plc shed 0.9% to the €5.65 level across three deals amounting to 2,500 shares. MIA’s Board of Directors is scheduled to meet on Thursday 1 August 2024 to consider the approval of the interim financial statements for the six-month period ended 30 June 2024. The Directors will also consider the declaration of an interim dividend.

A single trade of 1,000 shares pulled the share price of PG plc 1.5% lower to the €1.91 level.

Hili Properties plc fell by 1.1% to the €0.18 level on two trades of 40,000 shares.

GO plc moved 0.7% lower to the €2.90 level as 7,110 shares changed hands.

Meanwhile, HSBC Bank Malta plc traded flat at the €1.58 level over three deals amounting to 2,545 shares. HSBC will publish its interim results on Wednesday 31 July 2024 and the Directors will also consider the declaration of an interim dividend.

International Hotel Investments plc held the €0.41 level on one trade of 9,500 shares.

AX Real Estate plc closed unchanged at the €0.458 level on a single deal of 4,881 shares.

Today, Mapfre Middlesea plc published its interim results for the six-month period ended 30 June 2024. The company explained that it has adopted IFRS 17 insurance contract-approved models which also resulted in the restatement of the 2023 financial statements. In terms of financial performance, in the first half of the year, net income from insurance and investments amounted to €14.1 million compared to a restated figure of €11.1 million in the first half of 2023. Overall, Mapfre Middlesea generated pre-tax profits of €12.2 million compared to a restated figure of €9.70 million for the first six months of 2023. After accounting for a tax charge of €3.35 million and non-controlling interests of €2.80 million, the net profit for the period attributable to shareholders amounted to €6.03 million (H1 2023: €4.65 million) which translates to an annualised return on average shareholders’ funds of 14.3% (H1 2023: 11.8%).

The RF MGS Index rose by 0.38% to a one-week high of 898.931 points reflecting a decrease in sovereign bond yields in the Eurozone. In particular, the 10-year German bund yield touched 2.34% for the first time since the beginning of last April whilst the French 10-year bond yield hovered just over 3.04%, the lowest since the first week of June. Meanwhile, the US 10-year treasury yield also fell to an almost two-week low of 4.17% ahead of the Fed’s interest rate decision this Wednesday. Interest rates are widely expected to remain unchanged, however, the Fed is also anticipated to provide guidance on whether rate cuts are to be expected after September’s meeting.

 

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.