Financial news

Trading for the mid-week session at the Malta Stock Exchange resulted in a negligible decline of the Index as it shed 0.06 per cent to close lower by just a single point at the 2,643 level. Activity in the equity market was subdued as investors struck an aggregate 14 deals over three active listings. In relative terms, the two major local banks in terms of market capitalisation were the principle players during the session albeit terminating in opposite direction.

Bank of Valletta was the best performer for the day as the equity rose by 3c or 1.4 per cent to terminate at €2.10. The bank was trading unchanged for most of the session when in the final three minutes of the day fresh buying activity pushed the price to a higher level. The day's investors in the financial services company struck a total of 2,884 shares over six deals for a market value of €5,984.

HSBC Bank Malta was the day's loser as the listing shed 2c or almost one per cent to close at €2.10. The company was nevertheless the most liquid and actively traded equity as 9,400 shares were transacted over seven deals for a market consideration of €19,704.

Two investors swapped a mere 1,400 shares of Malta International Airport across a single deal. This trading activity for the airport operator resulted in no change in price and closed at €2.05.

In the fixed interest sector of the market, activity was particularly strong in government stocks with 13 active components and relatively subdued in the corporate debt issues with just three traded bonds. The highest turnover in the government stocks was registered in the 5.10 per cent MGS 2014 as 77,924 nominal were exchanged over four deals, as the security rose by 23 ticks to €106.23. The 6.60 per cent MGS 2019(I) was the best performer for the session as it climbed by 39 ticks when investors transacted 41,929 nominal over two deals at €116.12.

Weekly eurozone economic review

Another week but same old story, as the negative economic data continued to inundate the UK market. Not much action is expected from today's monetary policy meeting of the Bank of England. The UK's central bank is set to hold interest rates steady at 0.5 per cent for the first time since September. The BOE is still in the midst of implementing the committee's decision last month to buy €75 billion of assets.

In the meantime, the National Institute of Economic and Social Research issued its estimate for the first quarter Gross Domestic Product of 2009. According to this estimate, the UK economy shrank by 1.5 per cent, following the previous quarter's drop of 1.6 per cent.

Another significant drop was registered in the British's industrial output as it registered its biggest annual drop in February since records began 40 years ago. Official data showed industrial production fell for a 12th consecutive month in February, by one per cent. Although the monthly drop was slightly less than expected, it took the annual rate of decline to 12.5 per cent.

All this bout of negative data continued to dent consumer's sentiment as British consumer confidence slipped again in March. The Nationwide Building Society said its consumer confidence index fell to 41 last month, matching the series low hit last January.

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.