Financial news

The first day of the week started on a positive note at the Malta Stock Exchange with the Index gaining 0.1 per cent to close at the 2,828 level. Activity was relatively subdued as investors in the equity market swapped shares for an aggregate 29 deals over five active listings. The session ended with mixed results, with equities in the banking sector closing lower despite the gains posted by the Index.

HSBC Bank Malta was the day's laggard as the equity continued to decline from last Friday's session, losing a further 6c or 2.5 per cent to terminate at €2.38. The bank was nevertheless the most actively traded equity as investors struck a total of 20,350 shares over 16 deals, for a market consideration of €48,540.

Bank of Valletta was also a loser for the day, albeit closing by a marginal loss of 1c or 0.4 per cent, terminating the session at €2.55. Trading activity for the financial services company was spread over just three deals for a market value of €9,690.

Fimbank was also active for the day despite registering no shift in price. The trade finance specialist closed yesterday's session at $1.36 on low volume activity which resulted when two investors struck swapped a mere 100 shares.

Go was the session's best performer as the listing rose by 5c or more than three per cent to terminate the session at €1.60.

International Hotel Investments was also a gainer for the day with the equity rising by almost 3c or four per cent to reclaim the €0.76 level. Activity for the hotel proprietary and management group was spread over six deals for a market value of €27,038.

In the fixed interest sector of the market, activity was also low and spread over just four government stocks and three corporate bonds. The highest turnover in the government securities was registered in the 4.80 per cent MGS 2016 as 229,318 nominal were struck across six deals at €104.18, a positive variance of 46 ticks from its previous closing level.

Weekly US economic review

In a rather uneventful week for the US economic data, most of the market participants' attention was once again focused on the housing market data, where conflicting indicators rippled through.

March existing home sales fell three per cent to slightly above the cyclical lows touched in November 2008 and January 2009. A good percentage of these sales were distressed sales. The recent expiration of various "foreclosures moratoriums" is likely to push this number higher in the coming weeks. Moreover, the end of the foreclosure moratoriums could lead to another leg down in prices, thereby fuelling the possibility of further asset write-downs.

On a slightly more positive note, new home sales for the month of March were virtually unchanged from an upwardly revised February level, as sales figures for the first two months of 2009 were revised higher. Nevertheless, sales are 31 per cent below year ago levels. While certain dynamics of the new home market are improving, excess supply in the existing market may forestall a recovery, as new and existing homes are often "interchangeable goods".

March durable goods orders provided another green shot of optimism, as orders fell just 0.8 per cent, however there were significant downward revisions to February. This figure is in line with a slower rate of decline in the factory sector for the current quarter, but still somewhat away from a healthy self-sustaining 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.