Financial news

Trading during the mid-week session at the Malta Stock Exchange resulted in a further 0.2 per cent decline to the Index which ended the day at 2,800 points. Activity was spread across five listings with trading struck across a total of 23 deals.

Bank of Valletta was the day's worst performer as the equity continued to slide as investors cautiously await the publication of the bank's interim results following the closure of last Thursday's session. The day's activity was nevertheless meagre with just 625 shares exchanged at the €2.44 level, which represents a 6c or 2.4 per cent discount to its previously traded price.

HSBC Bank Malta was also a loser for the day albeit declining by a negligible one-tenth of a cent to close practically unchanged at €2.35. HSBC was the day's most actively traded security with 24,607 shares exchanged across 18 deals.

International Hotel Investments defied the negative trend of the equity market as it posted an increase of 1c1 or 1.5 per cent to reclaim the €0.77 level. The hotel proprietary and management group was the session's most liquid equity as investors struck 40,000 shares, carrying a market consideration of €30,362, across three deals.

Malta International Airport ended the day in the red as the equity depreciated by 2c to terminate at €2.15. Activity for the airport operator was low with just a single deal transacted for a value of €995.45.

RS2 Software was also active for the day when two investors swapped a total of 2,500 shares, thereby squeezing the price lower by 2c to close at €0.72. This marks the first trade since RS2 Software published its full year results which showed a pre-profit tax of €2.9 million for last year.

In the fixed interest sector of the market, activity also bounced back and was spread over 11 government stocks and four corporate bonds. The best performer in the government securities was the 5.90 per cent MGS 2015 which gained 298 ticks when two investors exchanged 9,318 nominal to close at €110.98.

Weekly UK economic review

The economic data emanating from the United Kingdom was more dramatic than expected with various market indicators signalling that the country is in a deep recession as the economy shrank at its sharpest rate in 30 years for the first quarter of this year.

Despite a more upbeat forecast by British Finance Minister Alistair Darling that the economy should see growth by the end of the year, the International Monetary Fund gave a much grimmer scenario by predicting that the country's economy will shrink by 4.1 per cent for the current year. Some economists are predicting an even worse situation with the GDP contracting more than four per cent by the end of 2009 as unemployment hit a record high of 6.7 per cent for February. The ailing UK employment market has left its negative mark on retails sales which declined to their lowest level in a decade.

If GDP data for 2009 was depressing, results for the manufacturing sector were worse as output suffered its most pronounced quarterly fall since records began back in 1948 with overall production falling 5.5 per cent on the quarter. The services sector was not spared as output fell at its lowest level in almost 30 years.

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.