Financial news

It was a busy mid-week session on the Malta Stock Exchange with 10 equities trading and volumes of over 69,000 shares across 48 trades. The MSE Index registered a negligible increase of 0.03 per cent to close at 4,146 points,.

Maltapost was the day's top gainer, as the equity marched forward to terminate the session at the €0.80 level, translating into a 1.91 per cent premium over its previous day's showing. Volume was relatively high with a total turnover of 32,989 shares across 20 deals.

Similarly, a single deal in Plaza Centres brought about a 1c or 0.6 per cent gain to its price which moved up to the €1.71 level while on the contrary Grand Harbour Marina declined by the slimmest of margins as 1,425 shares were swapped at €2.049. Trades in Bank of Valletta started late in the session when deals were struck at the previous closing price of €4.69. Further buying interest entered the market, pushing the price higher by 4c, only to give up some of this gain to close higher at €4.702.

Activity in FIMBank upped the price by the slightest of margins to close at €1.89 with a total volume of 15,000 shares over five deals. Simonds Farsons Cisk gave back some of its recent gains as a mere 476 shares were swapped across two transactions with both deals executed at the €2.71 level. This represents a 2c or 0.7 per cent discount to its previous closing price.

Malta International Airport lost some ground with 3,350 shares being traded at a discount of 1c on the execution of three transactions. Similarly, Grand Harbour Marina and HSBC Bank Malta both fell by 0c1 on modest trading levels.

A single trade in Crimonsonwing saw 1,500 shares changing hands at the €0.50 level. Earlier the company announced that it entered into an agreement to acquire the total issued share capital of VDA Informatiebeheersing BV, a Dutch company for a total consideration of €1.9 million. The acquisition will bring over 60 new clients to Crimsonwing and increases the company's sales in euros to 45 per cent of the overall group revenues.

Trades in Go failed to alter the price of €2.65, as three deals carrying 3,000 shares were executed during the session.

Weekly UK economic review

The Monetary Policy Committee (MPC) kept the benchmark interest rates on hold at five per cent as expected, after predicting that there could be a more protracted upturn in inflation which leapt to three per cent year on year in April.

The combination of slowing activity growth and accelerating inflation has been a common theme in the economic data flow lately. Britain's manufacturing sector failed to grow last month for the first time in almost three years. The Purchasing Manager Index (PMI) fell to 50.0 in May from 50.8, the point of zero growth. Declines in output and new order indices to their lowest since May 2005 accounted for the entirety of the decline.

UK services from banks to airlines contracted for the first time in five years in May, a sign the economic slowdown sparked by the global credit squeeze is deepening. Meanwhile, according to Nationwide's index of sentiment, UK consumer confidence fell to the lowest level as an increase in living costs added to the gloom about the economy.

Elsewhere, the Nationwide House Prices Index declined 2.5 per cent, month on month in May, the largest ever monthly fall. Besides, the number of mortgage approvals figures proved an even bigger downward surprise, declining to 58,000 reflecting a fresh record low. Further to the potential detrimental impact on consumer spending, a weakening housing market also drags private residential construction activity. The combination of all economic data being published in the UK implies that the British economy is in its biggest downturn since the last recession in 1991, which is a troubling sign.

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.