Jonathan Falzon, Head of Research at Rizzo Farrugia & Co, marked five years since he joined the stockbrokers by looking back on the “truly eventful” period.

Since making the jump from Delicata Winemakers, where he focused on improving grape quality, to become a financial analyst in 2021, Mr Falzon has been attempting to unearth insights into the companies participating in Malta’s capital market over a half-decade marked by macro-economic shifts, a technological revolution, and a local economy that has grown significantly despite global headwinds.

Taking to LinkedIn to mark the occasion, he pointed to the major developments that defined the period, from the spike in inflation and ensuing surge in interest rates to the AI revolution that pumped tech valuations to record highs.

Mr Falzon, who was promoted to Head of Research last year after obtaining financial modelling and advanced valuation certificates from the Corporate Finance Institute and NYU Stern School of Business, also noted that geopolitics was “a regular consideration amid supply chain disruptions, tariffs, and energy supply constraints.”

Although the general economic impact on Malta was deep at times and muted in others, the reverberations were often felt more acutely at sectoral or company level, with Mr Falzon underscoring the varied effects of the interest rate cycle, which peaked between 2023 and 2024.

While Malta’s low pass-through rate – a result of the structure of Malta’s domestic banking sector and high levels of customer deposits – meant that local households and corporate borrowers benefitted from stability, the cross-border integration of financial markets “brought record results for major banks but put pressure on commercial property valuations.”

The local market also had its fair share of activity, continued Mr Falzon, with corporate actions including mergers, spin-offs, takeovers, and share buybacks.

Several firms launched equity offerings “with mixed results” while the bond market “expanded incredibly amid record issuance from both corporates and Government.”

The Head of Research however warns that although the number of equity and bond issuers has increased, “their financial strength differs significantly.”

To that end, “selectivity remains key.”

Turning to his personal interest, Mr Falzon said he will continue to look at companies in detail, “understanding their business model, capital structure, risks and opportunities.”

And despite the growing prevalence of AI tools with the ability to extract highlights from an information overload, he believes the value lies in reading between the lines, seeing what is not explicitly stated, and understanding a story before it happens.

For that, “more analysis will be required.”