Financial news

Trading during the first day of the week at the Malta Stock Exchange resulted in a negative showing as the Index continued to decline, shedding a further 0.3 per cent to close the session at the 2,648 point level. Activity in the equity market was relatively subdued and spread over an aggregate 28 deals struck in just three listings.

Bank of Valletta was the day's most liquid and actively trade equity as 13,284 shares, carrying a market consideration of €27,691, were swapped over 13 deals. The banking and financial services group commenced trading on a positive footing but by the end of the session, the equity had moved lower by 1c which equates to a 0.5 per cent loss, to close at €2.07.

HSBC Bank Malta was the sole non-mover for the day as the price remained static from last Friday's closing level of €2.08. The Bank transacted a total of 12,805 shares which investors exchanged over 11 deals for a market value of €25,600.

Malta International Airport was the day's worst performer as the listing lost 13c or almost six per cent to terminate the session at €2.05, thereby giving up most of last week's trading gains. Activity for the airport monopoly operator was spread over four deals and carried a market value of €5,927.

In the fixed interest sector of the market, activity was more sustained and spread over 11 government stocks and three corporate bonds. In the government securities the highest turnover was registered in the 6.6 per cent MGS 2019 where 153,495 nominal were swapped over two deals as the stock declined by 40 ticks to close at €112.70. The recently issued fungible tranche of the five per cent MGS 2021 was the day's best performer as the security rose by 135 ticks over a single deal and 12,000 nominal.

In the corporate debt market there were no changes in price with the dollar denominated eight per cent Bank of Valletta 2010 registering the highest volume traded as 185,500 shares were exchanged over 11 deals at the $104 level.

Weekly US economic review

The economic schedule in the United States, started off on better-than expected data from the housing market but employment figures at the end of the week have cut short most optimism as it looks somewhat unlikely that consumers will be in a position to support the housing market.

March consumer confidence rose slightly from its all-time low in February, but nonetheless continues to languish at rock-bottom levels.

The Institute of Supply Management Manufacturing Index for the month of March was also better than the figure registered in February, but just like the consumer confidence figures the improvement in the series is merely indicating a slower pace of contraction in the manufacturing sector.

The latest news on construction spending and pending home sales of previously owned homes was also better than expected. In the meantime, total construction spending in February fell by -0.9 per cent versus -3.5 per cent in January.

Recent data looks to be hinting to a housing bottom but a weak labour market may forestall any significant recovery.

In fact, initial jobless claims forged to a new cyclical high, rising 669,000 from 657,000 previously, this is the fourth highest reading on claims in the history of the series which dates back to the mid-1960s.

The unemployment rate rose to a 25-year high at 8.5 per cent. The figure was broadly in line with market's expectations.

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.