Financial news

Trading for the mid-week session at the Malta Stock Exchange resulted in a positive performance of the Index which gained 0.4 per cent to terminate at the 3,079 level. In the equity market activity was spread over an aggregate 22 deals in five different listings.

Bank of Valletta was the day's sole gainer as the equity increased by 6c or 2.33 per cent to end the session at €2.64. The financial services company was the most actively traded equity as investors struck a total of 12 deals for a market consideration of €38,239.

Trading activity did not result in any change in price for FIMBank shares as it closed unchanged at $1.288. The trade finance specialist was the session's most liquid equity when investors swapped 153,000 shares over just two deals.

Similarly Lombard Bank Malta was also a non-mover during the session as the equity closed unchanged at €2.65. Trading activity for the Bank was relatively muted as 900 shares were transacted over two deals.

HSBC Bank Malta was the day's sole loser in the banking sector as the equity shed a negligible one-tenth of a cent to terminate the session at €2.58. Investors in the Bank exchanged a total of 8,100 shares over five deals for a monetary value of €20,899.

Simonds Farsons Cisk was the sole non-banking equity to be active in the day's trading session as it depreciated by a marginal 1c or 0.5 per cent to end the session at €1.85. Two investors swapped a minimal 400 shares during the day.

In the fixed interest sector of the market, activity increased from the previous session and was spread over seven government stocks and six corporate bonds. The sole gainer in government securities was the 6.35 per cent MGS 2013(II) which rose by a mere seven ticks over a single deal to close at €109.62.

Weekly eurozone economic review

Economic data in the 16-country region was focused on the European Central Bank's economic forecasts as it unveiled details of a plan to pump cash into the troubled economy, while keeping interests at a record low. The week also held a setback for Ireland which was downgraded by rating agency Standard & Poor's.

The ECB predicted that the eurozone economy would now shrink by up to 5.1 per cent this year, compared with the previous worst-case scenario of a 3.2 per cent decline. In fact, economic forecasts were slashed with expectations being that growth would not return until mid-2010, with a change in GDP of between -1 and 0.4 per cent, while inflation would remain well below its two per cent ceiling. Furthermore, ECB President Jean-Claude Trichet described the current one per cent interest rate as "appropriate" for the current economic environment but did not rule out further action if conditions warrant it. Meanwhile, Ireland's credit rating was lowered by Standard & Poor's for the second time in three months. The rating was dropped to AA from AA+ with a "negative" outlook on the cost of bailing out the country's banking system. The country was given a top AAA credit rating in October 2001 which it lost last March.

Eurozone retail sales inched up month on month for the first time in five months in April by 0.2 per cent compared to March. Moreover, their annual decline at 2.3 per cent was lower than that expected by analysts at 3.2 per cent, who amidst encouraging data are still sceptical on the region's economic outlook.

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.