MSE Index gains as activity spikes

Movements in Equity & Bond Indices

The MSE Equity Total Return Index (MSE) closed the second month of the year with a 1.3% gain, as activity soared. Large caps led the MSE in positive territory, as the two major banks together with Malta International Airport plc (MIA) and International Hotel Investments plc (IHI) closed in the green. Turnover jumped from €2.9m in January to €8.2m across 28 equities. The MSE closed the month at 8,205.646 points.

The

advanced further by 0.5%, ending the month at 1,175.785 points. Total turnover reached nearly €8m, which was spread across 86 issues, of which 42 gained and 27 fell. The

MSE Corporate Bonds Total Return Index 3.5% AX Real Estate plc Unsecured € 2032

headed the list of gainers, having increased by 3.3%, to close at €95. Meanwhile, the 5% MedservRegis plc Secured € 2029 was the worst performer, having slipped by 3%, closing at €97.

The MSE MGS Total Return Index registered another monthly decline, ending February 1.2% lower at 897.807 points. Total turnover was just above €4m, as activity was spread across 30 issues. Six appreciated and 24 lost ground. The 1.8% MGS 2051 (I) was the best performing bond, recording an 18.2% increase and closing at €78.

Top 10 Market Movers

In the banking sector, HSBC Bank Malta plc (HSBC) closed the month on a high with an 8.5% or €0.11 gain on the back of positive annual financial results. HSBC ended the month at €1.40 after trading at a monthly low of €1.28. A total of 98 deals worth €0.9m were executed, as demand for the equity increased on the day the bank announced the annual financial results.

Meanwhile, Bank of Valletta plc (BOV) shares posted a 3.8% gain, as the banking equity closed the month at €1.36. BOV shares were among the most traded shares, as 159 trades worth €1.1m were recorded. Since the beginning of the year the equity is still down by 4.2%.

FIMBank plc experienced a positive 10% growth in its share price, closing at $0.22. Five deals worth $6,705 were recorded.

MIA shares returned to the €5.85 level, as the share price of the airport operator closed the month at a three-month high. The equity’s price oscillated between €5.50 and €5.85, as the share price surged by 4.4% or €0.25 on the day the Company announced the 2023 full year financial results. During the month, turnover reached €1.2m across 79 transactions.

In the hospitality industry,

IHI shares gained 15% to finish the month at €0.52. Twenty transactions of 179,464 shares were recorded.

Simonds Farsons Cisk plc shares gained 2.3% or €0.15 to end the month at €6.70. Earlier in the month the equity traded at a monthly high of €7. Activity soared to €0.6m across 14 transactions.

In the IT sector, Harvest Technology plc joined the list of gainers with a 60.5% growth in its share price. This gain reflects an increase of €0.445, closing at a monthly high of €1.18. A total of 21,000 shares exchanged ownership across six deals, generating a turnover of €16,323.

Meanwhile, RS2 Software plc faced a double-digit decline of 13.6%, as a result of 22 deals involving 280,353 shares. The equity generated a total turnover of €0.32m, to close February at €1.02.

In the real estate sector, 12 deals of 96,180 Malita Investments plc shares, pushed the equity into negative territory. Despite trading at a monthly high of €0.57 and a monthly low of €0.49, the equity ended the month at €0.492. This translated in a decline of 15.2%.

The share price of Mapfre Middlesea plc retracted by 13.3% during February, after closing the previous month unchanged. The equity ended the month at €1.30, as a result of nine deals involving 6,619 shares worth €9,098.

Company Announcements

During a meeting held on February 21, 2024, the board of HSBC approved the annual report and accounts as at December 31, 2023. The Group reported a profit after tax of €86.8m for the year, an increase of €50.6m or 140% over the previous year. The bank is recommending a final net dividend of €0.0585c per share, which brings the total net dividend for 2023 to €0.0975c.

MIA welcomed 465,482 passengers in the first month of 2024, exceeding the 400,000passenger mark in January for the first time since 2020. Passenger movements through MIA registered an upswing of 22.7% over 2023.

Aircraft movements totalled 3,511 in January, corresponding to a 23.4% growth when compared with the same month in 2023. While seat capacity increased by 27.4% over the reference year, load factor registered a drop of 2.8%, as average occupancy on flights stood at 74%. The top driver of traffic for January was Italy with a market share of almost 23%, followed by the United Kingdom, Poland, Germany and France.

The Airports Council International published a report which saw MIA ranking among the top five performing airports within the EU+ region.

In addition, MIA closed 2023 with a record 7.8m passenger movements, as traffic volumes increased by 33.4% over 2022. Following the attainment of these positive results, MIA announced that the Group’s total revenue generated in 2023 amounted to €120.2m.

The Group’s net profit for the year amounted to €40.3m compared to a net profit of €38.9m, inclusive of a tax credit of €12m, reported in 2022.

The board is recommending the payment of a final net dividend of €0.12 per share. and the AGM is scheduled for May 15, 2024.

The board of AX Real Estates plc approved the audited financial statements for the year ending October 31, 2023. The Group generated €11.8m in revenue which consists of €11.7m in rental income from the lease of the Group’s investment properties and the rest from sales of property. Profit after tax for 2023 was at €0.4m, lower by €3.2m when compared to 2022. The directors did not recommend the payment of a final dividend.

Hili Properties plc announced the that it has successfully concluded the sale of a retail complex in Dzelzavas

Street, Riga, Latvia. This property, acquired in 2015 and transformed into a modern shopping destination, has been sold to align with Hili Properties’ strategy of optimizing its portfolio and enhancing capital efficiency.

Loqus Holdings plc announced that the directors have approved the half-yearly report of the Company for the six months ended December 31, 2023. The period saw the Group maintaining and improving on its record revenues achieved in the prior period. The Group is however reporting a loss after tax, for the period, of €610,298 compared to a profit of €561,280 in the same period in 2022. This loss is attributable to upfront expenditure brought about by the onboarding of new clients.

Malita Investments plc announced the issuance of a rights offer. This offer comprises a total of 65,825,806 new ordinary shares, each with a nominal value of €0.50 per share and at an offer price of €0.50 per share.

The Company also announced the recent completion of the third of four social housing projects in Kirkop. The site is due to be fully occupied in the coming weeks. A further four sites in Kirkop, Msida, Qrendi and Siġġiewi are now expected to be completed in or around March 2024. The Company will keep the market informed of further developments relating to the Affordable Housing Project.

This article, which was compiled by Jesmond Mizzi Financial Advisors Limited, does not intend to give investment advice and the contents therein should not be construed as such. The Company is licensed to conduct investment services by the

MFSA and is a Member of the Malta Stock Exchange and a member of the Atlas Group. The directors or related parties, including the company, and their clients are likely to have an interest in securities mentioned in this article. For further information contact Jesmond Mizzi Financial Advisors

Limited at 67, Level 3, South Street, Valletta, or on Tel: 21224410, or email info@jesmondmizzi.com