Financial news

Trading for yesterday's session at the Malta Stock Exchange ended on a positive note as the Index edged higher by a marginal 0.4 per cent to terminate at the 3,087 mark. Activity in the equity market was characterized by lower volume than the previous session as investors swapped a total of 22 deals over four different listings.

HSBC Bank Malta was the day's most actively traded equity with activity spread over eight deals for a market consideration of €20,995.The financial services company was also the session's best performer as it rose by 2c which equates to a 0.8 per cent rise, and a closing price of €2.60.

Bank of Valletta was also a gainer for the day as it gained a marginal 1c or 0.4 per cent to end the session at €2.65 despite trading at an intra-day low of €2.64, as fresh buying activity pushed the price back up to its present standing. Trading activity for the Bank was spread over six deals and a market value of €13,109.

FIMBank defied the positive trend in the banking sector as it declined in value during yesterday's trading session when it shed 0c8 of a dollar or 0.6 per cent to close at $1.28. Investors for the dollar denominated equity transacted a total of 10,500 shares over three deals.

Trading activity did not result in any change in price for Go shares as it closed unchanged at €1.729. The quadruple play communications company was the session's most liquid equity when investors swapped 13,000 shares over five deals.

In the fixed interest sector of the market, activity was spread over seven government stocks and seven corporate bonds. The sole gainer in government securities was the 5.1% MGS 2014(III) as it gained a mere 11 ticks on two deals to terminate at €104.64. Otherwise all other government stocks declined in value.

Weekly UK economic review

Economic data issued during the week continued to raise expectations that Britain might emerge from the recession following positive reports in the country's industrial output. However, while short-term economic indicators had improved slightly there is still a high level of uncertainty on the medium term outlook of the country.

British industrial output which accounts for 18 per cent of the country's gross domestic product has rose unexpectedly in April for the first time in more than a year. In fact, industrial output rose by 0.3 per cent on the month supported by another unexpected rise in the manufacturing sector which gained 0.2 per cent in April, also a first increase for a year. Meanwhile, survey evidence suggests that business activity in Britain may have taken a tentative step out of contraction for the first time in 13 months in May as the purchasing manager's index has reached a reading of 50.9, above the 50 mark that signals stable output. This positive data, resulting from an increase in the services sector, indicates a level of stabilisation in activity after several quarters of hefty declines in the sector.

The week's economic news was also focused on the Bank of England's decision to leave its benchmark interest rate at a record low and keep its plan to buy new bonds with newly created money to pull the economy out of the recession. Despite recent signs of economic stabilisation, the UK's Monetary Policy Committee clarified that it would spend the whole £125 billion pot allocated for assets purchase.

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.