Financial news

Trading for the mid-week session at the Malta Stock Exchange failed to overturn the negative showing of the Index as it dipped by 0.3 per cent to close at the 2,699.5 level, as low volume activity in the local airport operator dragged the Index lower. A total of six equities were active during the day with activity spread over 35 deals.

Go was the day's most liquid and actively traded equity as 22,920 shares were struck over 13 deals with an aggregate market consideration €34,030. The quadruple play communication's company was a non-mover as it closed at €1.48.

Similarly, trading activity in Bank of Valletta shares had no impact on the equity's share price as it closed unchanged at €2.20. Activity for the financial services company was spread over five deals and a market value of €9,254.

FimBank was also active for the day as two investors swapped 5,000 shares for a total consideration of $9,254. The trade finance specialist registered no change in its share price for the session as it closed unchanged at $1.30.

Plaza Centres was the day's only gainer as the equity rose by 2c or slightly more than one per cent to close at €1.72, representing a new high for the year. Trading activity for the shopping and commercial operator was spread over a single deal on very low volume.

Malta International Airport was the session's laggard as the listing depreciated by 15c2 which equates to a seven per cent drop, representing a new low for the airport operator during the current year. Activity in the company's shares was spread over four deals with a monetary value of €4,280.

HSBC Bank Malta was also a loser for the day albeit a small drop of one-tenth of a cent to close the session practically unchanged at €2.18. Trading during the day resulted in 13,708 shares being transacted over a total of 11 deals.

Despite not being active for the day's trading session, Grand Harbour Marina issued its financial statements for the year ending December 2008, whereby the company registered a pre-tax loss of just below €400,000, as revenues dropped over 77 per cent.

International market report - weekly round-up

Minutes of the UK Monetary Policy Committee March meeting were released last week. The decision to lower interest rates to an all-time low of 0.5 per cent and the surprise announcement of the £75 billion asset purchase were unanimously voted for by all members. Much of the astonishment was soon cut short as a dismal employment figure was released, where a record number of Britons signed for unemployment benefits. The internationally recognised International Labour Organisation measure of unemployment vaulted the two million mark in January, taking the jobless rate up to 6.5 per cent. Average earnings figures were also on a downside and are expected to keep sliding lower as more pressure on the UK labour market is expected to mounts on.

Another unexpected data release came from the inflationary front as consumer price inflation jumped to 3.2 per cent, well above the two per cent target. Market participants were also expecting a year-on-year figure of 2.6 per cent. Soaring food prices and a weaker pound pushed British inflation, but the Bank of England said price growth would still come down sharply as spare capacity in the economy escalate. BOE Governor Mervyn King told a parliamentary committee that the sterling's depreciation was much to blame for the rise in inflation.

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.