Financial news

The Malta Stock Exchange regained some of the losses it registered during the past week as the index edged up by 0.8 per cent to terminate at the 3,518.17 level.

In fact, the day's best performer was Bank of Valletta as the equity rose by 7c or 2.1 per cent to terminate at €3.40, which is the highest level registered in a period of two months.

HSBC Bank Malta also ended the session in positive territory as the equity gained 3c, which equates to an increase of one per cent to terminate at €3.08. The bank was trading at an intra-day low of €3.05, when buying activity supported the price to its current position.

Elsewhere in the banking sector, Lombard Bank Malta and FIMBank were non-movers during the day as the equities closed unchanged at €2.93 and $1.08 respectively.

Likewise, Middlesea Insurance and Go shares also terminated the session unaltered as they closed unchanged at €0.70 and €2.17 respectively. However, the latter had a very volatile session, falling initially by 7c1 before increasing towards the end.

The sole negative performer during the session was Maltapost, as its share price dropped by 2c or 2.4 per cent to close at €0.80. Investors in the postal operator swapped 4,000 shares across two deals.

Meanwhile, RS2 Software shares also posted a gain during the day, albeit increasing by just a mere one tenth of a cent to close at €0.48.

The week ahead - Economic Indicators for week starting April 26

In the US, with few inflation concerns and a comparatively lacklustre recovery, the Federal Open Market Committee (FOMC) should leave the Federal Funds Target Rate on hold at 0-0.25 per cent on Wednesday. The first estimate of Gross Domestic Product (GDP) for the first quarter of this year scheduled for Friday, will probably not live up to the strong performance of the previous quarter. Private consumption is expected to provide the largest positive contribution, while fixed investment and exports will likely be a drag. In the housing market, the Case Shiller Home Price Index should see the price level tick lower. In addition, a number of releases regarding consumer confidence, including those published by the Conference Board today and the University of Michigan later on in the week, are expected to register minimal progress. Employment data is expected to show that unemployment remains elevated.

In the eurozone, markets will focus on the flash inflation rate which is likely to have stabilised in April, following the step higher in March. Germany's release will give an early indication of the likely outcome. The release of the unemployment rate later on in the week is likely to keep consumer sentiment subdued. However, the German labour market may once again buck the regional trend, with another fall in unemployment. Germany's IFO report and the euro-area business climate and economic sentiment surveys are likely to show business becoming more upbeat. The European Central Bank (ECB) will keep a close eye on the money supply growth, while Greece is expected to give further details of its deficit reduction plan for the period 2010-2012 in order to qualify for the rescue package.

In the UK, the week will be quiet in terms of economic data. The main economic indicators in the country will relate to the housing sector. The Nationwide House Prices is expected to show further upward pressure while loans for house purchases as measured by the British Bankers' Association is likely to also show further increases. Finally, on Thursday, the monthly GfK consumer confidence, a monthly survey which tracks changes in the public's confidence in the British economy, is also expected to be released.

This article has been prepared by Bank of Valletta plc (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.