Financial news

Trading for the mid-week session at the Malta Stock Exchange resulted in a negative outcome as the Index shed a further 0.22 per cent to terminate lower, at the 2,647 level. Activity in the equity market was higher than Tuesday's session with four active listings attracting trades for a total of 34 deals.

Go was the day's worst performer, depreciating by 5c or 3.2 per cent to terminate at €1.50, as the equity commenced trading without the attached rights to receive a 12c net dividend. The quadruple play communications' company was nevertheless the most liquid equity with investors swapping 22,179 shares over 13 deals and monetary value of €33,661.

Bank of Valletta was the sole gainer for the day as the equity climbed by 1c or 0.5 per cent to close the session at €2.09. Despite trading at an intra-day low of €2.06, buying pressure resulted in the reported day's increase. Activity for the financial services company was spread over 13 deals and a market consideration of €27,566.

HSBC Bank Malta was the only non-mover for the day as price remained static from the previous session to close at €2.16. Investors in the company struck a total of five deals for a market value of just €2,142.

FimBank, the trade finance specialist, shed 0.9 per cent to end the day at $1.29 on the transaction of a mere 1,100 shares which were spread across three deals. At the end of the session, best demand stood for 390 shares bidding at $1.289 while 4,778 shares were best offered at $1.385.

In the fixed interest sector of the market, activity was spread over four government stocks and five corporate bonds. In the government securities the 7.80 per cent MGS 2013(I) was the best performer as it closed 53 ticks higher when two investors swapped 23,294 nominal at the €117.81 level. Turnover in the corporate debt issues was highest in the eight per cent Bank of Valletta 2010 when 64,000 nominal were transacted over two deals at $104.00.

Weekly UK economic review

More signs of stabilisation filtered through most economies worldwide, but while signs of a much awaited bottom look ever closer, the path for recovery looks arduous more than ever.

The main news from the UK economy was an uninspiring Monetary Policy Committee, where the Bank of England left interest rates unchanged at a record low of 0.5 per cent as it was widely expected. In an adjoining statement issued with the rate decision, the Bank said that it will continue with its £75 billion Asset Purchase Scheme announced back at the start of March to boost the economy. The Committee also noted that "since its previous meeting, a total of just over £26 billion of asset purchases had been made and that it would take a further two months to complete the programme.

Meanwhile, the UK's trade balance failed to improve for a second month. The value of imports was £3.2 billion higher than exports in February, reversing the trend that started last summer of a narrowing deficit. Exports have fallen circa five per cent in 2009 so far, while imports have dropped approximately two per cent. Nonetheless, a more competitive pound remains likely to boost exports when global demand finally starts to stage a meaningful recovery.

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.