Financial news

Trading for yesterday's session at the Malta Stock Exchange resulted in a negligible decline of 0.03 per cent to the Index which closed practically unchanged from Wednesday's session at the 2,692 level. Activity was relatively subdued in the equity market as a total of 25 deals were struck across three listed equities.

Bank of Valletta was the session's most liquid and actively traded equity as investors swapped 28,476 shares, carrying a market consideration of €61,791, over 21 deals. The financial services group was also the day's sole loser as the price closed 1c lower at the €2.17 level. At the end of the session 1,500 shares were best bid at €2.13 against supply of 2,000 shares best offered at €2.175.

HSBC Bank Malta was also active for the session albeit registering no change in price and closing at €2.13. Activity in this security consisted of 1,470 shares which were swapped across two transactions. Go was the day's best performer as the listing climbed by almost 1c or 0.6 per cent to terminate at €1.46. Trading for the quadruple play telecommunications company was spread over two deals, with volume activity just adding up to 2,027 shares.

In the fixed interest sector of the market, activity was spread over three corporate bonds and eight government stocks. Sovereign bonds, with the exception of the 7.80 per cent MGS 2018 all moved lower in price ahead of the European Central Bank's decision to cut its key benchmark interest rates by 25 basis points following the end of the trading session.

The highest turnover was registered in the 5.1 per cent MGS 2014 as 23,977 nominal were transacted over three deals, with the listing shedding 26 ticks to close at €106.56.

Among the corporate debt issues the 6.75 per cent Corinthia Finance 2012 was the best performer rising by 10 ticks as two investors exchanged 5,000 nominal at the €100.10 level.

International market report - weekly round-up

Global equity markets had a volatile start to the week, as market sentiment began on a weak footing on growing tensions in London ahead of the G20 meeting. Additionally, the government warnings that some banks will need more aid sparked a flight to quality that pushed equities lower.

Bad news from financial institutions JP Morgan and Bank of America both perceived business conditions in March as being more difficult than in February and the grim outlook for the auto industry, General Motors and Chrysler which were threatened by the authorities about restructuring and government aid, set the tone on the US exchanges.

President Obama also said bankruptcy for the two automakers is an option. Yet, the broader market in the United States firmed up later in the week, and as a result this drop was not that dramatic. In fact, the Dow Jones Industrials closed up by 0.15 per cent, and the technology index Nasdaq managing 1.48 per cent. The broader S&P 500 dropped by 0.34 per cent.

On the other side of the pond, sentiment was also initially negative after Spain had to rescue a regional bank and Standard & Poor's lowered Hungary's & Ireland's long term credit rating by one notch, both issuers assigned a negative outlook.

Later in the week, equities nevertheless rallied on what appeared to be window-dressing ahead of the first quarter end, leading the FTSE 100 higher by 1.42 per cent. Nevertheless, Germany's Xetra Dax and France CAC 40 closed the week in red.

Across Asia, gains were registered on the Japanese equity market, as the Nikkei 225 managed an increase slightly short of one per cent. The Hang Seng index also closed higher over the week.

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.