Financial news

The MSE Index lost a mere 0.02 per cent to 4,815 points during Monday's trading session at the Malta Stock Exchange. The session was kept in balance by gainers and losers across the board.

The largest positive increase was registered in FIMBank shares, which attracted buying activity with investors purchasing a total of 18,335 shares across five transactions. The equity closed the day at the $2.00 level, with a further 9,588 shares outstanding on the offer side at this price.

Trading liquidity in Crimsonwing improved with 52,054 shares carrying a market consideration of €30,997 being exchanged across 10 trades. Upped interest in the equity saw the price higher by 2c or 3.5 per cent to close at €0.60.

Unrelenting interest in MaltaPost helped the price inch higher, with the equity reaching an intra session high of €0.66, activity consisting of 39,988 shares which were struck across 17 deals.

MiddleSea Insurance and Simonds Farsons Cisk both slumped over relatively small volumes, losing five per cent and 1.7 per cent respectively.

Malta International Airport shares came under some pressure, as buyers and sellers exchanged 6,000 shares at an average of €3.151, representing a 4c9 discount to its previous closing price.

The highest number of shares traded was registered in International Hotel Investments, on a sole trade of 76,209 without altering previous closing price of €1.

Weakness in Bank of Valletta shares persisted with the second largest company by market consideration losing a further 2c on each share which closed the session at €6.29, the lowest closing level recorded for this year.

In the fixed interest sector, the market activity was spread across four corporate bonds and four government stocks. The 5.20 per cent MGS 2020 attracted the highest turnover, while the seven per cent Gap Developments Plc registered the biggest gain moving higher by 270 ticks to €99.70.

US economic review - weekly round-up

The Federal Open Market Committee (FOMC) decided to cut rates by 50 bps last week and essentially pre-committed to more rate cuts if financial conditions warrant. The uncertainty currently surrounding monoline bond insurers will play a pivotal role for the growth prospects. Economic prospects would dim dramatically should they be downgraded, as another potentially bout of credit market write downs would be likely to loom again over the markets.

The accompanying statement after the rate decision last Wednesday had the FOMC members emphasise again that financial markets remain under considerable stress , with credit continuing to tighten, the deepening of the housing contraction and some softening of the labour market. Policymakers failed to cite any comments on the current price levels.

Last Friday's employment figures surely made policymakers more comfortable with their recent aggressive easing. January non farm payrolls were much weaker than expected, coming in with an overall decrease of 17,000 when most of the market was expecting an increase of around 75,000. There were also some downward revisions to the previous two months figures. January job weakness was broad-based.

Overall the unemployment rate was rounded down to 4.9 per cent from five per cent.

This article has been prepared by Bank of Valletta p.l.c. (the Bank), which is licensed to conduct investment services business by the MFSA, for your general information only. This information is not a solicitation or offer by the Bank to acquire or sell securities. Nor does it constitute any form of advice by the Bank. Appropriate advice should be obtained before making any such decision. Past performance is not necessarily a guide to future performance and the value of your investments may fall or rise.