Bulls are back
The recent surge of the Malta Stock Exchange index and in particular two finance houses indicates that good times lie ahead. This solid performance on the back of healthy results and sound financial fundamentals gives a positive outlook to the outside...
The recent surge of the Malta Stock Exchange index and in particular two finance houses indicates that good times lie ahead. This solid performance on the back of healthy results and sound financial fundamentals gives a positive outlook to the outside world.
The long-term investors are finally being rewarded for their patience and trust in the MSE. On average, an investment in HSBC or BoV ordinary shares at the beginning of the year realises returns of some 30 per cent plus in the capital gains and dividends payouts. By comparison, fixed cash deposits offer four per cent over a three-year period and the long-term rates are on a downward trend.
Should Malta adopt the euro as its currency in the not so distant future, present interest rates must come down in line with other EU member states. This should encourage a switch from fixed deposits to other financial instruments offering higher yield.
Presently, many securities listed on the MSE offer price/earning ratio and good dividend prospects. Taking a closer look at the MSE today will give a very interesting picture.