Financial news

Trading for the first day of the week at the Malta Stock Exchange resulted in a positive outcome for the Index which rose by 0.32 per cent to terminate at the 2,839 level. Activity in the equity market was higher than usual with investors trading an aggregate 54 deals over nine active listings.

Bank of Valletta traded for the first time since the publication of its interim financial results on April 30 as it depreciated by 10c or slightly more than four per cent to close at €2.30. The financial services company was also the most actively traded equity with investors swapping a total of 14,302 shares over 15 deals.

Lombard Bank Malta rose 5c of 1.9 per cent during the session to reclaim the €2.70 level.

Activity for the bank was subdued with two investors transacting a total of just 700 shares.

HSBC Bank Malta was the sole non-mover in the banking sector as it closed unchanged at €2.40. Trading for the company was also relatively low and spread over three deals for a market consideration of €3,120.

On a single deal, Go closed as the day's best performer climbing by 8c or five per cent to €1.68 as two investors swapped 1,000 shares in a single deal. At the end of the session, 4,000 shares were best bid at €1.61 against supply of at least 2,000 shares offered at the €1.67 level.

International Hotel Investments was also a gainer for the day as it increased by 2c7 or 3.4 per cent to close at €0.83, representing a new 2009 high for the equity. The day's activity consisted of a total of 36,442 shares which were exchanged over an aggregate 10 deals.

Medserv was the day's laggard as the listing depreciated by 19c, shedding more than five per cent to end the session at €3.50. The oil industry services provider was the most liquid component with a grand total of 39,250 shares, carrying a market consideration of €139,672, swapped across 12 deals.

Plaza Centres was also active for the day, rising by 2c to terminate the session at €1.72, while Maltapost and Malta International Airport remained static during the session as they both closed unchanged at €0.70 and €2.10 respectively.

Weekly US economic review

The recession in the US, which has by now entered its 16th consecutive month is set to become the longest since the Great Depression. Analysts are however pointing to encouraging reports that the economic downturn is finally slowing down. This was also confirmed in the Federal Open Market Committee statement, as Fed Officials said that "the pace of contraction appears to be somewhat slower" and "that the economic outlook has improved modestly since the meeting in March.

This sprout of optimism was evidenced in the consumer confidence Index that posted its biggest jump in more than three years during the month of April. This data also links with news coming from the Labour Department whereby the workers filing for unemployment aid unexpectedly fell, suggesting that the level of layoffs declined. Despite these positive signs the labour market remains weak with low demand and fewer companies hiring the unemployed, who are finding it harder to reenter the job market. Additionally, the Labour Department said that the Employment Cost Index, a broad measure of wages and benefits, rose by just 0.3 per cent in the January-March quarter, which is the lowest amount on record.

Another encouraging economic statistic was provided through the Institute of Supply Management, as the factory sector shrank with a slower pace in April, thereby injecting further hope of stabilisation. Although the reading was still in contraction territory at 40.1, it fared well above the previous 36.3 in March and an expected figure of 38.0.

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.