Financial news

A relatively active session at the beginning of the week on the Malta Stock Exchange did not alter significantly the Index's performance as it closed marginally higher at 4,639 points.

The top performing equity on the day was 6pm Holdings, after the publication of it financial statements covering a shortened five month period ending December 31, 2007. The technology stock registered an increase of 5.5 per cent to close at £0.77 signaling a yearly high. Investors reacted positively to a pre-tax profit of £275,881. The Board of Directors approved the payment of a net interim dividend of £0.013 per share on the basis of the interim accounts, payable to all shareholders who appear on shareholders' register as at the April 25.

International Hotel Investments was the most actively traded company with a total turnover of 52,664 shares traded across 11 deals. This buying interest saw the price rise by 2.7 per cent over its previous trading levels to close at €1.09,9, thereby closing at a yearly high.. Trading activity in Simonds Farsons Cisk saw the other positive increase of the day, with a slight gain of 0c2. This was achieved over a single transaction of 552 shares which saw the price trade at its highest level this year.

GlobalCapital continued its downbeat performance, which saw investors exchange 1,100 shares over seven deals, with a negative change of 20c or 6.83 per cent from its previous reading, thereby closing at €2.73, which equates to a yearly low.

HSBC Bank Malta, the largest listed company by market capitalisation, traded at just over half a percentage point lower to end the session at €4.39 with 5,114 shares swapping hands across 8 transactions.

Meanwhile, activity in Bank of Valletta of 1,335 shares failed to steer any moves as the equity closed unchanged at €5.45.

Trades in Go and Lombard Bank failed to alter the previous closing of €3.015 and €13 respectively.

US weekly review

Last week's Federal Reserve's 18 March minutes confirmed that Fed members Richard Fisher and Charles Plosser voted against the decision of a 75 basis point cut to 2.25 per cent last month. Both members preferred what the accompanying statement called a "less aggressive action". The dissenters' line of thought focused more on the inflationary pressures - this was also discussed and eventually presented in the statement, as upside risks to inflation were re-emphasised.

Inflationary concerns were accentuated by a surge in import prices for the month of March. This was largely driven by record oil prices. However other imported products were also on the rise due to the dollar depreciation, and spurring further imported inflation. The rise is important as imports account for approximately 30 per cent of the core Consumer Price Index and will be worrisome for the Fed, which in the last Federal Open Market Committee minutes recognised that the boosting of prices through the weaker dollar is a key inflationary risk.

Meanwhile, US consumer confidence plunged significantly to 63.2 when expectations were for a 69 figure. This equates to a 26-year-low, dated March 1982. Consumers look trapped between rising unemployment, falling equity and house prices and rising food and energy costs.

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.