Financial news

Yesterday's trading session at the Malta Stock Exchange resulted in a positive outcome as the Index rose by 1.5 per cent to close at the 2,881 level. Activity in the equity market was spread over six active listings, with none of the MSE constituents trading in negative territory.

HSBC Bank Malta was the day's best performer as the equity rose by 7c or almost three per cent to terminate at €2.47. The bank was also the most liquid and actively traded component as investors struck an aggregate 34,000 shares over 19 deals for a market consideration of €82,603.

Bank of Valletta was also a gainer for the day as the banking equity climbed by 2c or 0.87 per cent on fresh buying activity to close at €2.32. Trading activity for the financial services company was spread over 11 deals and a market value of €27,382.

Another banking equity trading on the day was Lombard Bank Malta, but unlike the two other banking components, Lombard shares closed the session unchanged at €2.70, with trades limited to a lesser volume. Go was the other non-mover yesterday as the equity closed at €1.68. Investors for the quadruple play communications' company exchanged an aggregate of 6,486 shares over five deals.

Low trading activity was also registered in International Hotel Investments, nonetheless the hotel proprietary and management group still benefited from a 1c8 or 2.18 per cent rise to see the day off at €0.85.

Similarly, the day's trades resulted in a positive outcome for Medserv which increased by 5c to close higher at €3.55. Trading activity for the oil servicing company was low with two investors transacting a total of 750 shares.

In the fixed interest sector of the market, activity was spread over four government stocks and eight corporate bonds. The highest turnover in the government securities segment was registered in the five per cent MGS 2021(I) as 647,489 nominal were swapped over four deals, to see the price lower by 33 ticks for a closing price of 102.30.

Weekly eurozone economic review

The economic data from the eurozone countries continues to reflect the strong recessionary forces prevailing in the region with a contracting economy that is being further compounded by high levels of unemployment.

The good news in sight, however, is the unexpected rise in consumer confidence with economic analysts viewing this rise as a sign that the economy might be bottoming out. Eurozone unemployment jumped to a 44-month high in March on the back of the worst recession since World War II, likely offsetting the beneficial effects on household demand of record low inflation.

Countries like Ireland and Spain have registered double digit figures of unemployment, with the Iberian unemployment rate at a worrying 17.4 per cent. Meanwhile, the Consumer Price Inflation remained stable at a record low of 0.6 per cent in April with expectations turning negative in the next few months.

Manufacturing activity declined at its slowest pace in six months in April with data showing that factories were de-stocking at the fastest rate in at least 12 years and slashing jobs at a record pace. This continues to increase job insecurity and makes people more reluctant to spend. There are signs of hope, however, that greater consumer confidence will spur growth in manufacturing which grew marginally to 36.8 for the month of April, despite being the 11th consecutive month below the 50.0 mark that divides growth from contraction.

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.