Financial news

The MSE Index lost 0.3 per cent to close 4,451 points during yesterday's trading session at the Malta Stock Exchange. This drop was fuelled by negative showings in five of the index components, with GlobalCapital having the largest negative percentage change for the day.

In fact, a sole trade of 400 shares in the diversified financial equity executed close to the end of dealing, lowered the price to the €3 level, which equates to a 17c6 or 5.5 per cent drop from the previous closing price.

Crimsonwing traded for the first time this month as 8,812 shares were exchanged across three deals, with the price ending lower by two per cent to close at €0.54 thereby closing at a year low.

With trading being struck towards the end of the session, Go suffered a loss of 4c to close at €2.90, with a 1,525 shares dealt across four transactions.

Lombard Bank also suffered a similar fate when selling pressures towards the close of trading depressed the price by 0.4 per cent to terminate at the lowest level reached this year of €3.235.

Bank of Valletta was the day's most liquid equity with a grand total of 10,715 shares, carrying a market consideration of €54,110, changing hands across 12 transactions. The equity declined to the €5.05 level which translates to a 2c or 0.4 per cent discount.

Maltapost commenced trading lower at €0.77, subsequent trading restored the price back to the €0.80 level. On May 22, the company should be releasing its interim results for the six-month period ending March 2008.

Trades in Grand Harbour Marina failed to alter the price of €2.05, as two investors swapped 866 shares. HSBC Bank Malta and International Hotel Investments were among non-movers, 9,898 shares leaving their previous market prices at €4.15 and €1.07.

Eurozone economic review - weekly round-up

The European Central Bank (ECB) continued with the status quo and left rates on hold at four per cent last week. President Jean-Claude Trichet stressed again that upside risk to inflation prevail, relating to further rises in energy and food prices and "vigorous" money and credit growth. With no sign of softening in the ECB's hawkish tone it looks like previous pricing in of rate cuts has been abating over the past weeks.

The ECB also released the lending survey for the first quarter which showed that lending standards tightened further. The survey revealed also that demand also fell during the same quarter. Demand from corporate borrowers fell for the first time in a year to reach the lowest level since 2003. Household demand also eased, particularly for mortgage borrowing.

The latest data suggest that, regardless of how supportive the fundamental conditions for consumers might look, spending itself looks extremely week. Eurozone retail sales fell by 0.4 per cent on the month in March, taking the aggregate annual rate down 1.6 per cent. The drop in annual rate was due partly to base effects after a pretty strong increase in sales last March, but it also reflects underlying weakness in the sector.

Elsewhere, the purchasing managers' index held steady for the region. At just above 50 it continues to signal a moderate expansion, notwithstanding the continued signs of weaknesses in a number of European economies.

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.