Financial news

Trading for the mid-week session at the Malta Stock Exchange resulted in a positive outcome for the index which rose by 1.3 per cent to terminate at the 3,064 level. Trading activity bounced back from the previous session with investors swapping shares in an aggregate 34 deals across seven active listings.

Malta International Airport was the day's best performer as the equity gained 15c2, equating to almost a seven per cent rise to close at €2.332. Activity was relatively muted as 3,200 shares were struck over three deals for a market value of €7,106.

International Hotel Investments was also on the list of gainers as the equity climbed by a further 3c to close at an all-year high €1. The hotel proprietary and management group was also the most liquid equity for the session as 25,000 shares were swapped over five deals.

In the banking sector, HSBC Bank Malta was the day's best gainer as the equity rose on fresh buying activity. Investors in the financial services company swapped an aggregate 11,200 over nine deals thereby pushing the price higher by 3c or 1.2 per cent to terminate at €2.599.

Similarly, Bank of Valletta shares also gained in value as investors pushed the price by a further 1c to close at €2.40. Trading activity for the bank was spread over a total of nine deals and a monetary value of €22,414.

Go was the day's sole loser and defied the positive trend of the market by losing 1c9 or 1.1 per cent to close at €1.73, as 8,130 shares were swapped across five deals.

Lombard Bank Malta and Maltapost were the sole non-gainers for the day as the equities closed unchanged at €2.70 and €0.71. Following the close of business, MaltaPost issued its interim financial results for the first six months ended March 31, 2009 whereby the company registered a profit before taxation of €1.92 million as compared to €2.60 million for the same period last year. This represents a decrease of 26 per cent over the six months ended March 31, 2008.

Weekly eurozone economic review

The economic indicators in the eurozone area were supported by a flow of positive data with strong increases staged in the ZEW institutes' survey which reports analyst and investor sentiment. Further supporting the improved sentiment in the region was the growing consumer confidence in Europe's largest economy, Germany.

The composite Purchasing Managers' Index for the euro area, which is a leading indicator of economic activity in the private sector rose almost four percentage points in May to 43.9 to its highest level in eight months. While this is still below the 50-mark that separated expansion from contraction, the increase was beyond expectation and was driven by improvements in both the manufacturing and services sector. Meanwhile the Ifo Institute's German corporate sentiment index rose for a second straight month in May, reaching a six month high. A separate report from the GfK market research showed that German consumer confidence also rose and is expected to hold steady for a fourth month running going into June. This upbeat mood in the Germany economy defied the confirmation of the preliminary results, earlier this week, that the German economy sustained its biggest contraction since reunification as it shrank by 3.8 per cent quarter on quarter.

Finally, in Germany the ZEW survey of financial analysts saw a significant improvement in investor confidence with expectations of output for the next six months rising to a seventh consecutive time and which by now is at a three year high.

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.