Financial news

Trading for the mid-week session at the Malta Stock Exchange resulted in no major change to the index which edged slightly up by less than 0.1 per cent to terminate the session at the 3,049 level. Activity in the equity market was subdued as investors traded a total of 15 deals spread across three listings, all of which are in the financial services sector of the market.

Bank of Valletta was the day's best performer albeit only by a marginal gain of 1c1 which equates to a 0.5 per cent increase to its share value, ending the session at €2.412. Investors for the financial services company exchanged an aggregate 4,700 shares over six deals.

HSBC Bank Malta was the day's most liquid and actively traded equity with 15,100 shares swapped over a total of six deals. The equity closed higher by 0c4 or 0.2 per cent to reclaim the €2.584 level. At the end of the session best demand stood for 478 shares bidding at €2.575 while supply for 2,250 shares was offered at €2.584.

FIMBank was the sole equity to terminate yesterday's session in negative territory shedding 0.8 per cent to end the day at $1.28. Trading activity for dollar denominated equity was on the low side as investors struck 2,000 shares over a single deal.

In the fixed interest sector of the market activity was spread across three government stocks and eight corporate bonds. In the corporate debt issues the best performer was the euro tranche of the 7.00% MIDI 2016/18 which rose by 50 ticks over 20,000 nominal to close at €101.50. In the government securities the 3.60% MGS 2013 (IV) headed the list of gainers as it rose by seven ticks over three deals to end the session at €100.25.

Weekly eurozone economic review

The economic indicators for the 16-country euro area were overshadowed by the growing rate of unemployment which threatens to outweigh the boost in purchasing power coming over the coming months from sharply retreating inflation. Against this negative backdrop, some glimmers of hope have appeared in other important indicators such as growing consumer confidence and manufacturing.

Eurozone unemployment grew in April to its highest level in nearly 10 years as it rose to 9.2 per cent from its 8.9 per cent in March, which is above the 9.1 per cent figure expected by economists. The unemployment figures across the euro area are uneven, with Spain heading the list with as much as 18.1 per cent of its workforce out of work. Meanwhile, on a positive note, a severe eurozone factory recession eased in May and there were signs that companies were picking up production. In fact, eurozone manufacturing Purchasing Managers Index rose in May to a seven-month high on a reading of 40.7, up from its April 36.8 level. This was the biggest monthly jump in the survey's 12-year history, but it was still below the 50 level that divides growth from contraction.

More positive data was issued during the week by a European Commission survey which indicated that economic sentiment improved more than expected in May in the 16 countries using the euro. The improvement was fuelled by improved sentiment in the retail sector, industry and services, in yet another sign that the low point of the recession may have passed.

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.