Financial news

Trading for the mid-week session at the Malta Stock Exchange was spread across eight equities and resulted in a positive variance for the index which rose by a further 0.6 per cent to close at 3,017 points.

Bank of Valletta was the day's most liquid and actively traded equity as 18,917 shares, carrying a market consideration of €45,166, were swapped across 10 deals. The bank closed the session lower by 0c8 at €2.387, leaving outstanding demand for 2,000 shares bidding at €2.38 while supply for 1,000 was unfilled at €2.399.

Similarly, FIMBank depreciated in value during the trading session shedding 1c or 0.8 per cent to close at $1.29. Activity for the trade finance specialist was relatively muted with just 1,150 shares swapped over two deals.

HSCB Bank Malta was the session's sole gainer in the banking sector, as it climbed by a further 5c or two per cent on continued buying activity to terminate the session at €2.60.

Trading activity for the financial services company was spread over nine deals for a market consideration of €23,920.

Crimsonwing was the day's laggard as the equity shed 7c9, which equates to a 16.8 per cent decline, as 3,000 shares were swapped between two investors at the €0.39 level.

On the contrary, Simonds Farsons Cisk was the day's best performer, as the security gained 12c or 6.9 per cent on the purchase of a mere 250 shares which was executed at the €1.87 level.

Similarly, both Maltapost and Go were gainers during the trading session rising by 1c and 0c5 respectively to correspondingly terminate at €0.71 and €1.74. A total of 4,000 shares were exchanged in both securities.

Elsewhere in the market, RS2 Software was the sole non-mover for the day as the equity close unchanged at €0.72 following the transaction of 5,350 shares.

In the fixed interest sector of the market, activity was spread over four government stocks and five corporate bonds.

The highest turnover in the government stocks was registered in the 5.1 per cent MGS 2014 where 1.8 million nominal were transacted over three deals, with the security closing higher by nine ticks at €106.63.

Weekly UK economic review

Economic indicators emanating from the United Kingdom suggest that the pace of contraction in key sectors such as manufacturing and industrial production have declined, this tentatively suggesting that the drop in economic activity may be bottoming out.

The Bank of England announced that it will be extending its Asset Purchase Scheme for banks while maintaining its interest rates at their historic low of 0.5 per cent at the backdrop of an inflation rate which is well above the BoE's two per cent target in recent months. The BoE will continue to support the economy through quantitative easing measures whereby it plans to add an extra £50 billion of newly created money to the existing £75 billion pot to purchase gilts, corporate bonds and commercial paper.

British manufacturing output slipped at its fastest rate during a calendar quarter since records began in 1948 for the first three months of 2009, though the monthly decline was much less than what analysts expected. In fact, the industrial production measure of output fell 0.6 per cent, again defying analysts who predicted a steeper decline of 0.8 per cent. Meanwhile, British sales rose to their fastest rate in three years in April which was complemented by an improvement in the housing market where prices fell at their slowest pace in 15 months.

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.