Financial news

Trading activity for the mid-week session at the Malta Stock Exchange has resumed following cancellation. The day ended in negative territory however, as the Index declined by a marginal 0.2 per cent to terminate at the 3,082 mark. Investors in the equity market were active in a total of six listings, with an aggregate amount of 23 deals.

Go was the only equity to register an increase during the session as the price rose by 0c9 or 0.5 per cent to close at €1.749. Trading activity in the quadruple play communications company was spread over two deals and a market value of €4,354.

Malta International Airport was the day's worst performer as the equity depreciated by 7c or 3.3 per cent to terminate at €2.05. The airport operator transacted a total of 1,200 shares over a single deal. HSBC Bank Malta was the session's sole non-mover as the equity closed unchanged at €2.60. The financial services company was also the day's most actively traded equity when a total of eight deals were struck for a market consideration of €15,762. Bank of Valletta registered a minor decline in its share price as it shed a mere 1c5 which equates to a 0.6 per cent decline to end the session at €2.66. Despite trading at an intra-day high of €2.685, selling pressure lowered the price to its current standing. The Bank was the day's most liquid equity when investors exchanged a total of 6,886 shares over seven deals. GlobalCapital and Plaza Centres also ended the session on a negative note as the equities shed 5c or 3.2 per cent and 2c1 or 1.7 per cent to end the day at €1.50 and €1.699 respectively. While the former traded a mere 800 shares over three deals the latter had higher volume and transacted 5,000 shares over two deals.

In the fixed interest sector of the market, activity was higher than usual, and spread over seven government stocks and 10 corporate bonds. The highest turnover in the government securities was registered in the 6.1 per cent MGS 2015(I) as €868,076 nominal were transacted over two deals as it increased by 103 ticks and closed at €110.54.

Weekly eurozone economic review

The economic data for the current week in the eurozone featured an update on the rising figures of unemployment in the region, while the hefty drop in oil costs pushed eurozone inflation to its first ever standstill in May. Industrial production figures were disappointing and continue to raise concern that the region is lagging in terms of signs of recession easing.

The 16-country eurozone lost a record 1.22 million jobs in the first quarter of this year which highlights the depth of the recession. The number of employed fell 0.8 per cent in the first three months with Spain and Greece leading the list for steepest quarterly falls in employment, shrinking by 3.1 per cent and 1.8 per cent respectively. Meanwhile, inflationary pressures continue to abate in the eurozone as the gap between what the economy can produce and what it is producing continues to widen. In fact, core inflation in the region, which refers to price growth excluding energy and unprocessed food, was zero for the month of May and 1.5 per cent year on year, declining from its 1.7 per cent in April. Furthermore, headline inflation grew by 0.1 per cent month on month in May and was unchanged year on year, while energy prices rose 0.4 per cent on the month and fell 11.6 per cent on the year.

Eurozone industrial production shrank by more than a fifth in April compared to a year earlier, a record figure which raises risks that the second quarter could be weaker than expected. Production in the region fell 21.6 per cent, exceeding the previous year on year record decline in March and economists' expectations of a 20.2 percentage drop. Industrial production accounts for roughly 17 per cent of the eurozone's gross domestic product.

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.