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MSE extends losing streak as bank earnings fail to lift sentiment

MSE extends losing streak as bank earnings fail to lift sentiment

The MSE Equity Index fell for a fourth week despite strong earnings from BOV and APS Bank, as property and telecom stocks dragged.

EV
Editorial Staff4 November 2026

The Malta Stock Exchange equity benchmark extended its losing run to four consecutive weeks, closing 1% lower at 10,523.373 points. The decline came despite solid quarterly earnings from two of the country's largest banks.

Weekly turnover reached €1 million across 240 deals, with 26 equities active. Eight stocks gained while 12 closed in the red.

“For Malta's business community, the divergence between strong bank fundamentals and falling share prices suggests investors are pricing in headwinds from lower interest rates and economic uncertainty.”

Bank of Valletta plc slipped 0.4% to €2.35 even after reporting operating income of €387.1 million for the nine months to September, up 6% year-on-year. Net interest income rose 10.6% to €316.8 million, though profit edged down to €125.5 million from €127.3 million.

BOV also announced it will redeem its €350 million 10% fixed-rate resetting senior non-preferred callable notes on December 6, 2026, at par plus accrued interest.

APS Bank plc bucked the trend, climbing 1.7% to €0.59 after posting record quarterly earnings. Net interest income surged 37.5% to €77.7 million, while profit more than doubled to €22.7 million from €10.5 million. Net impairment charges rose to €3.5 million, but the NPL ratio remained contained at 1.48%.

The bank distributed €11.4 million in dividends, with €3 million retained as scrip.

Not all lenders fared well. HSBC Bank Malta plc saw profit fall 25.1% to €28.7 million, hit by lower average interest rates and market volatility. A €6.5 million release of expected credit losses from a recovered corporate loan provided partial relief. The bank approved a gross interim dividend of €0.046 per share, bringing the year-to-date total to 12.5 cents, payable December 11.

HSBC Malta continues to progress toward a new majority shareholder, CrediaBank, subject to regulatory approval.

The steepest declines came from property and telecom stocks. Malta Properties Company plc tumbled 13.3% to €0.416, while PG plc shed 9.4% to €1.45. GO plc dipped 2.4% to €2.48.

International Hotel Investments plc fell 4.4% to €0.55, despite announcing a strategic collaboration with Accor. Five Verdi-managed hotels in Malta, Portugal and Tunisia will join Accor's Handwritten Collection from November 2026, with two more properties in Hungary and the Czech Republic to follow by early 2027.

On the upside, MedservRegis plc advanced 8.2% to €0.66, recovering from a weekly low of €0.56. Malta International Airport plc edged 0.8% higher to €6.60.

The MSE Corporate Bonds Total Return Index slipped 0.2% to 1,162.565 points, with 19 of 72 issues gaining and 31 falling. The best performer was the 3.75% AX Group plc unsecured 2029 series, up 3.9% to €99.75. The worst was the 5.70% Central Business Centre plc bond, losing 3.1% to €93.99.

Government bonds offered a bright spot. The MSE MGS Total Return Index rose 0.1% to 949.208 points. The 3.50% MGS 2035 gained 1.1% to €95, while the 1.8% MGS 2051 lost 11% to €55.61.

For Malta's business community, the divergence between strong bank fundamentals and falling share prices suggests investors are pricing in headwinds from lower interest rates and economic uncertainty. The rotation out of property and telecom stocks into bonds and select gainers points to a cautious market positioning ahead of year-end.