Financial news

Trading for yesterday's session at the Malta Stock Exchange resulted in a negative outcome for the Index which declined by a marginal 0.2 per cent to terminate at the 3,010 level. Activity in the equity market bounced back from Monday's session as investors struck a total of 30 deals across seven active listings.

Malta International Airport was the day's sole gainer as the equity rose by 0c9 or 0.4 per cent to close at €2.179. Nevertheless, trading activity for the airport operator was relatively subdued as just 799 shares were swapped between two investors.

Bank of Valletta registered a 0c9 decline in its share price, which equates to a 0.4 per cent drop to end the session at €2.29. Investors for the financial services company transacted a total of 3,515 shares over six deals.

Similarly, HSBC Bank Malta was also a loser for the session as it shed the same monetary value on selling pressure which pushed the price down to €2.59.

Trading in the bank's equity was muted with a single deal accounting for the day's total market consideration of just €2,590.

FIMBank was the day's most liquid equity as 257,934 shares were exchanged over four shares and a market value of $332,734. Despite trading these high volumes, the dollar-denominated equity registered no change in price ending the session at $1.29.

Similarly, both Medserv and Simonds Farsons Cisk were non-movers during the day as they closed unchanged at €3.55 and €1.869 respectively on low volume.

Go was the most active equity with trades spread over 15 deals and market value of €74,056. The quadruple play communications' company was also, however, the session's worst performer as its shares depreciated by 1c9 or 1.09 per cent to close at €1.73.

In the fixed interest sector of the market, activity spread over 10 government stocks and five corporate bonds. The highest turnover in the government securities was registered in the 4.80% MGS 2016 as 600,000 nominal were transacted over just a single deal to decline by five ticks and close at €103.36.

Weekly eurozone economic review

Economic indicators in the eurozone were dominated by the dismal first quarter results in German GDP, which were unprecedented in historical terms. Negative first quarter results were also posted in other eurozone countries albeit at a lower level of contraction. Recent surveys are however indicating a glimmer of hope, with second quarter readings still expected to be in recessionary territory but at a significantly lower rate.

Europe's largest economy, Germany, led the euro area to the worst GDP performance on record as it dropped by 3.8 per cent quarter-on-quarter (qoq) stemming from a plunge in industrial production and export demand. Imports were also hard-hit, whereas public and private consumption managed to edge higher compared to one quarter earlier. Furthermore, consumer prices also increased 0.7 per cent in April after gaining 0.5 per cent the previous month. Meanwhile, euro area GDP plummeted by a staggering 2.5 per cent qoq; this is the fourth consecutive quarter of contraction in euro area output which has dropped by 4.6 per cent, below the peak level in the first quarter of 2008.

Also on a negative note, the eurozone industrial output declined by 2.00 per cent in March after a revised 2.5 per cent in February.

Along with the German results, GDP results were released for a string of other eurozone countries with The Netherlands and Austria slipping both by 2.8 per cent. The French economy was more resilient in the region as it declined by just 1.2 per cent.

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.