Financial news

The Malta Stock Exchange saw its second consecutive day of gains yesterday as the index climbed more than nine points, or almost 0.3 per cent, to close at the 3,500.339 level on the back of rising banking shares.

Bank of Valletta plc witnessed the biggest gains on the day as shares in the local retail bank gained 2c5, or 0.8 per cent, to close at €3.325 in weak volume of four trades of 2,357 shares.

HSBC Bank of Valletta plc also closed higher yesterday, gaining 1c or 0.3 per cent over the previous session's closing price. This was the most actively traded stock in the session, as 3,490 shares exchanged hands across 10 deals. This bank saw its share close at a price of €3.09.

Banking stocks have been leading the MSE lower as of late forcing the index to give back much of the gains it has seen over the year. In the last 52 weeks, the index has provided investors with a 20.1 per cent return.

Maltapost plc was the sole loser on the day giving up 1c4, or 1.7 per cent, to close at €0.805 in a single trade of 2,000 shares. The best unsatisfied bid at the end of the day stood at €0.765 for 2,000 shares while the best unsatisfied offer stood at €0.810 for 2,256 shares.

Other stocks to trade in the day but finished unchanged were Medserv plc which ended the session at €4.30 in four trades of 36,000 shares, and International Hotel Investments plc which closed at €0.80 in a single trade of 2,982 shares.

Weekly UK economic review

In the United Kingdom, consumer prices in March increased by a more than expected 3.4 per cent from a year earlier, compared to an increase of 3.1 per cent the previous month. Extracting energy costs, inflation as measured by the consumer price index rose by three per cent on a year-on-year basis. This shows that the inflation figure is still in breach of the Bank of England's two per cent inflation target with a band of one percentage point. Prices as measured by the retail price index increased 4.4 per cent in March compared with the same month last year. Excluding mortgage interest payment from the figure, prices rose by 4.8 per cent on a year-on-year basis during March.

On a positive note, retail sales registered an increase for the second consecutive month in March as this rose by 0.4 per cent compared to an upwardly revised 2.5 per cent increase the previous month. Excluding automotive fuel, retail sales increase by a lower 0.2 per cent during the same month, compared to an increase of 2.0 per cent in February.

In the labour market, the unemployment rate as measured by the International Labour Organisation increased to eight per cent in the three months ending February, from the previous 7.8 per cent. Finally, a few weeks before the election, Britain recorded the biggest annual budget deficit since World War II as the public sector net borrowing in March rose to £23.5 billion from £20.03 billion in the same month last year. As a result, borrowing for the whole fiscal year totalled a record £152.842 billion, which is equivalent to 10.9 per cent of 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.