Financial news

Trading activity for yesterday's session at the Malta Stock Exchange resulted in yet another negative outcome for the Index which lost slightly more than one per cent to terminate at the 3,051 level. Activity in the equity market was lower than usual and was spread over an aggregate 14 deals in four different listings, of which a single equity ended the day unchanged while the others closed in negative territory.

Bank of Valletta was the day's most liquid and actively traded equity when investors exchanged a total of 11,987 shares over nine deals for a market consideration of €2.651. Despite being the only listing which was trading in positive territory throughout much of the session, reaching an intra-day high of €2.670, selling pressure in the final moments of trading lowered the price by 0c9 to close at €2.651.

Go defied the session's negative sentiment by being the day's sole non-mover to close unchanged at €1.749. Trading activity for the quadruple play communications' company was relatively muted and spread over two deals for a market value of €3,498.

Malta International Airport ended the day in negative territory as the equity shed 5c which equates to a 2.44 per cent decline to end the session at €2. Just 3,300 shares in the airport operator over two deals for a market value of €6,600.

International Hotel Investments shares registered a 3c9 decline during the session which represents a loss of 3.9 per cent to terminate at €0.951. Activity in the hotel management and proprietary group resulted when 4,700 shares were swapped over a single deal.

Despite not being active for the day's trading session, Simonds Farsons Cisk announced that the Groups' turnover has reduced marginally as compared to the same period last year, but the various measures of cost containment taken by the management should make up for the shortfalls in revenues and to date, targeted results are close to being attained.

In the fixed interest sector of the market, activity was spread over six government stocks and seven corporate bonds. The worst performer in the government securities was the 5.9 per cent MGS 2009(II) which shed 57 ticks over a single deal to close at €100.80.

Weekly UK economic review

In the United Kingdom, economic data during the week was focused on the country's inflation which has remained stubbornly high even though the country has passed through the worst recession in almost three decades. The week also featured positive data in the housing market and exports which both managed to edge higher, prompting greater hopes that the recession is easing.

British inflation fell much less than expected in May to remain above the Bank of England's two per cent target for the 20th consecutive month. In fact, the National Office of Statistics announced that consumer prices in the country rose 0.6 per cent in May, which took the annual inflation rate to 2.2 per cent from 2.3 per cent in April. While this was the lowest reading since January this year it remains above average forecasts of two per cent. Meanwhile there were further encouraging signs in the housing market as new buyer enquiries rose for the seventh consecutive month. This is translating into new sales, which were in positive territory for the third month running. Homeowners are still awaiting prices to stabilise as the supply of houses for sale has dropped by 35 per cent compared to last year.

UK exports increased in April despite weak demand conditions around the world. Exports rose by three per cent year on year in part thanks to a weaker pound which made UK products more competitive abroad. Moreover, imports also increased by three per cent, supported by the fact that prices fell by one per cent.

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.