Financial news

Trading for yesterday's session at the Malta Stock Exchange resulted in an upward movement of the Index which gained almost 0.9 per cent to close back up at the 3,025 point level. An aggregate 18 deals characterised the trading session in the equity market with investors active in a total of four listings.

HSBC Bank Malta was the day's best performer as the equity rose by 6c9 which equates to a 2.8 per cent increase to terminate the session at €2.569. Trading activity for the financial services company was however on the low side as investors swapped a total of 5,000 shares over three deals for a market value of €12,845.

Lombard Bank Malta was also a gainer during the session as its shares rose by 5c or 1.9 per cent to end the day at €2.70. The day's activity consisted in 1,000 shares which changed hands across two deals.

Bank of Valletta was the most liquid and actively traded equity when a total of 12,844 shares, carrying a market consideration of €30,769 were transacted over 11 deals. The bank declined by a marginal 0c9 during the session, equating to a 0.4 per cent drop to close at €2.39.

GO was the session's sole non-mover as the equity closed unchanged at €1.749. Activity for the quadruple play communications' company was spread over two deals for a total monetary value of €8,745.

In the fixed interest sector of the market, activity was higher than usual and spread over nine government stocks and 10 corporate bonds. The highest turnover in the corporate securities was registered in the 6.15 per cent Bank of Valletta 2010 as 112,794 nominal were exchanged over six deals as the bond closed unmoved at €101.52.

In the government securities the best performer was the 6.60 per cent MGS 2019 (I) which rose by 97 ticks over a single deals of 3,450 nominal to terminate the session at €115.70.

Weekly eurozone economic review

Despite a lack of economic data emanating from the United States for the current week, noteworthy information can be extracted from last week's FOMC minutes, with policy officials maintaining significant concern for the country's current economic outlook amidst glimmers of hope that the recession may be bottoming out.

In terms of economic activity, the Fed has revised lower projected GDP estimates for the year 2009 and 2010 which is expected to flatten out gradually over the remainder of the current year. In fact, the index of leading indicators, which is supposed to forecast economic trends six to nine months ahead, rose one per cent in April after a revised 0.2 per cent decline the previous month. Moreover, the Philadelphia Fed's regional survey of manufacturing conditions for that region in May was worse than anticipated but it still represented a slight improvement from the previous month. Meanwhile, in the housing market, US housing starts and permits fell to record lows in April, weighed down by a slump in multifamily units. Notwithstanding this negative data, US home builders' sentiment surged to an eight month high in May.

The FOMC members are in agreement that the projected path of unemployment rate is rising more steeply throughout the year. In fact the unemployment rate for the insured labour force edged up another tenth to 5.00 per cent. However, on a positive note, initial claims of jobless in the May 16 week fell 12,000 to 631,000, which is a mild improvement when compared to the previous week.

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.