Financial news

The first trading session of the week saw the Malta Stock Exchange practically stuck at the same level of last Friday's closing level. The local index closed at 2941.17 points, crawling higher by 0.01 per cent. Although trading activity was spread over six different companies, the deals executed were once again limited to an average of two deals to each equity.

Maltapost was the day's top performer with a gain of 3.69 per cent. The postal operator closed at €0.675, as 1,500 shares were transacted over two deals.

Backed by the highest number of shares traded on the day, Bank of Valletta saw its share price gaining 0.34 per cent or nine tenths of a cent to close at €2.659. At the close of the session there stood 510 shares at the bid side with a price tag of €2.635 against a supply of 5,000 shares at €2.66.

HSBC Bank Malta and Go were the only non movers during Monday's trading session. HSBC Bank Malta registered an uncharacteristic low level of turnover with only 450 shares traded on the day. Meanwhile, Go's trading session saw the exchange of 2,000 shares spread over two deals.

Plaza Centres and Simonds Farsons Cisk battled for the wooden spoon as both equities traded in negative territory. The Sliema based company saw its share price drop by 2.88 per cent clinching the trophy for the session's worst performer.

Plaza Centres' equity closed the session at €1.65, as 6,000 shares were transacted over two deals. With one thousand less in turnover Simonds Farsons Cisk saw its share price trade lower by five cents or 2.78 per cent, for a closing price of €1.75.

Weekly UK economic review

The trends in risk appetite and the global economy will continue to have an important market impact in the short-term. Overall market conditions are liable to be more testing during the third quarter due to fears that the global economy will still face major difficulties in securing a sustained recovery. Against this backdrop, the G8 meeting will steal most of the limelight this week with other important economic data looming in the periphery. The US dollar will most likely top the list on the G8 agenda, following the recent concern on the greenback's depreciation and possible exit strategies, expressed by a number of emerging countries.

The release of the Institute of Supply Management Index in the US should provide further evidence that the world's largest economy is slowly moving out of the recession as the Index is expected to move closer to the 50-level mark.

Improved economic conditions should also be signalled in the British economy with industrial and manufacturing indices showing further signs of improvement. The Bank of England will convene midway through the week where the Monetary Policy Committee should hold interest rates at the current rate of 0.5 per cent.

Meanwhile, the eurozone's economic schedule is set for a relatively light week of economic data. Gross Domestic Product figures will attract most of the attention as the first quarter GDP is expected at a negative 4.8 per cent, year-on-year.

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.